Cumberland

Cumberland Metals: Case Study Analysis. 1/12

Cumberland Metals: Case Study Analysis

DISCLAIMER: I have, t the best ! my abilities, resear"hed, analy#ed, r$ani#ed, and  %resented !indin$s !r this "ase study. study. &'ever, it must be nted that irre"n"ilable irre"n"ilable dis"re%an"ies 'ithin the available data made sme ! the "al"ulatins bth a dauntin$ and im%re"ise tas(. )his is is es%e"ially es%e"ially true in re$ards t revenue and "st !i$ures. *lease be a'are ! the in!luen"e ! unreliable "st and revenue data in re$ards t the %ri"in$,  %rdu"tin, and mar(etin$ re"mmendatins %resented in this study. study. &'ever, it must must als be nted that many ! the dis"re%an"ies are le$itimate di!!eren"es in data "lle"tin methds and tests used in the "ase.

Cumberland Metals: Case Study Analysis. 2/12

Introduction

Cumberland Metals !a"ed a bth a %ri"in$ and "hannel mar(etin$ de"isin !r metal %ile "ushins utili#ed durin$ %ile drivin$. Cumberland+s a%%ra"h t %ile "ushins had si$ni!i"ant e!!i"ien"y advanta$es ver ther asbests methds that 'ere "urrently available in the 1- mar(et. &'ever, Cumberland !a"ed several barriers t entry int the %ile "ushin mar(et. )he %rimary barrier 'as that mst "m%anies vie'ed rle ! "ushins as a ne"essary a""essry r tan$ent item instead ! vie'in$ "ushins as a  %tentially value addin$ r "st redu"in$ %art ! %ile drivin$. In rder t %enetrate the mar(et, Cumberland 'uld have t alter the la"(adaisi"al vie' ! %ile drivin$ "ushin  %ads !r the %inin leaders, en$ineerin$ !irms, and "ntra"trs invlved in the de"isin  %r"ess.  Key Stakeholders

)here 'ere several sta(ehlders in the bth in the %ile drivin$ industry and 'ithin Cumberland Metals. irst, Cumberland Metals and the 'el!are ! its em%lyees 'ere mar sta(ehlders in the %ile drivin$ "ushin %ri"in$ and mar(etin$ de"isin. Cumberland metals !a"ed a de"linin$ mar(et in Slip Seal , their main sur"e ! revenue. A ne' su""ess!ul %rdu"t 'as im%erative t the "ntinued su""ess ! the "m%any. )he de"isins re$ardin$ %ile "ushins "uld $reatly in"rease the "m%any+s revenues and  %r!its r assist in its de"line.

Cumberland Metals: Case Study Analysis. 0/12 )here are als several se"ndary sta(ehlders in the %ile drivin$ industry. Se"ndary sta(ehlders in"lude %ile hammer manu!a"turers, ar"hite"tural "nsultin$ en$ineers, sil "nsultants, %ile hammer distributin$/rentin$ "m%anies, en$ineerin$/"nstru"tin "ntra"trs, and inde%endent %ile drivin$ "ntra"trs. )he 'r(ers 'h drive %iles are als sta(ehlders sin"e the "urrent asbests %ads may be ha#ardus t their health due t asbests and heat related inuries. Ehibit A summari#es sme ! the sta(ehlders their %re"ted im%rtan"e t Cumberland+s mar(etin$ de"isins, and their %re"ted attitudes t s'it"hin$ !rm asbests t hi$her e!!i"ien"y metal "ushins. Exhibit A Projected Attitude

Importance

Who?

a. b. c.

Neutral Positive Positive

High High Medium/Low

d.

Negative

High

e.

Positive

High

f.

Positive

g.

Positive

h. #.

** **

Medium/Low Medium %&o Cumberland' Medium/Medium High High

Pile Hammer Manufactures Architectural/Consulting Engineers Soil Consultants Pile Hammer istributing/!enting Com"anies Engineering/Construction Contractors #nde"endent Pile$riving Contractors (or)ers +nions Cumberland Metals

 Key Issues

Cumberland needs t "nsider several mar(etin$ de"isins. irst, they must determine a methd !r %ri"in$ and ultimately a %ri"e !r the ne' metal %ads. Se"nd, Cumberland must de"ide 'hi"h "hannels t mar(et the %ads based n the sele"ted %ri"in$ strate$y. )hird, Cumberland must determine h' mu"h t invest in manu!a"turin$ e3ui%ment by estimatin$ mar(et %enetratin and "nsiderin$ the "sts and bene!its ! investin$ in %ad %rdu"in$ e3ui%ment.

Cumberland Metals: Case Study Analysis. 4/12  Analysis

Cumberland+s ne' metal %ile drivin$ %ads %rvided several bene!its ver the "urrent asbests "ushins. Several *ad !eatures and %ri"in$ de"isins 'ill be dis"ussed and analy#ed in this se"tin. irst, the sa!ety and heat %r%erties ! the "ushins 'ill be analy#ed and "m%ared t "urrent asbests %ads. Se"nd, e!!i"ien"y "hara"teristi"s 'ill  be analy#ed and "m%ared 'ith "urrent asbests %ads. )hird, several methds ! "al"ulatin$ the best %ri"e in rder t mat"h the %ri"e t the value added !r the "ustmer 'ill be dis"ussed. inally, an analysis ! the di!!erent mar(etin$ "hannels and mar(etin$ strate$y 'ill be %resented. Safety

Cumberland+s metal %ads 'ere %rbably mu"h sa!er than the "urrent asbests  %ads 5Ehibit 26. Asbests 'as %rvin$ ha#ardus t health and the !ederal $vernment 'as startin$ t re"$ni#e it as a ha#ardus material durin$ the late 1-7s and early 187s. Le$islatin intrdu"ed in the late 1-7+s by Milli"ent en'i"( and !rmerly ad%ted as &use Reslutin 9224 re3uired manu!a"turers and distributrs ! asbests %rdu"ts t  be res%nsible t %ay bene!its t anyne 'h 'as inured by asbests as a result ! their a"tins. &.R. 9224; Re3uires the Se"retary ! Labr t dire"t res%nsible %arties 5%arties en$a$ed in the manu!a"ture, im%rt, sale, r distributin !  %rdu"ts r substan"es "ntainin$ asbests r "i$arette tba""6 t %ay  bene!its 'ith res%e"t t the disability r death ! any %ersn "aused by an asbests