Case Analysis Overview
Cumberland Metal Industries (CMI) is one of the largest metal
manufacturers in the world. The club evolved from selling metal as a finished ware to one th
at use it as a gross material, increasing gross sales from $250,000 in 1963 to over $18,500,000 in 1979. C
urrently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles
. Although CMI dominates the market place for this product, corporate sales figures decreased over the la
st year. As a result, the management at CMI realized the importance of diversifying its product-lin
e so that the compevery does not rely as heavily on SlipSeal or the automobile industry.
With this in mind, CMI management was in truth interested in a hot product that could be used as a cush
ion pad in mess driving. The cushion pads, consisting of curled metal, were superior in performance
to the asbestos pads currently used throughout the industry. The curled metal pads lasted longer t
hen asbestos pads and were easier to change. Furthermore, the ripening concern over the health risks
associated asbestos gave CMIs pads an added advantage. Government regulations prohibiting the use
of asbestos or fashioning them costly to handle, could push pile drivers toward CMIs cushion pads.
Th
e prospects prompted Robert Manicucci, the wickedness president of Engineered Products Division at CMI, to
declare:
Curled metal cushion pads seem to have more potential than any other product weve ever in
troduced. A successful market introduction could as much as double the sales of this company, as we
ll as compensate for the decline of some breathing lines. It almost looks too good to be true.
II.
Problem
Thomas Simpson, the manager of the Mechanical Products Group at CMI, was excite
d about this new product as well. The pads offered CMI an opportunity to diversify its product line
and subjoin its sales volume. Furthermore,...If you want to get a full essay, direct it on our website: Orderessay
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