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Curled Metal Inc Engineered Products Division Case Solution

Solution Id Length Case Author Case Publisher
2363 1499 Words (5 Pages) Benson P. Shapiro, Frank V. Cespedes Harvard Business School : 709434
This solution includes: A Word File A Word File

The purpose of this report is to present the pricing and production aspects of Curled Metal Inc. regarding the new cushion pads. The main goal of a marketing campaign is to increase brand awareness and let others know how much time and money can be saved by using the product. Having an Amalgamated Pile and Fitting company on board and seeking their interest in showcasing the products on Pile Talks is a minute approach to spread the word and educate people in the industry about pads, but that may not be the main focus because they do not know what these talks are really about. The efficiency of the CMI pad will help companies move faster to other jobs to provide faster cash flow from operations. Although CMI cushions cost more, the savings will exceed the initial cost making the business profitable. 

Following questions are answered in this case study solution:

  1. What should a customer be willing to pay for one of Curled Metal Inc.’s new cushion pads? What factors are relevant in calculating the willingness to pay in this situation? Prepare a specific monetary estimate of customer value in this situation.

  2. What price should CMI set for one of its new cushion pads? Why? Please focus on an 11.5-inch cushion pad.

  3. On page 1 of the case, Curled Metal Incorporated’s vice president Joseph Fernandez says, “The way we price this could have a significant impact on everything else we do.” An integrated strategic option specifies the basic type of advantage a company will pursue (e.g., differentiation? low cost? other?), relevant decisions about customer and product scope, and key choices throughout the company’s value chain. Please prepare an integrated strategic option for CMI – an option that specifies your price but also specifies the many other choices facing Curled Metal Inc. in formulating a strategy for its new cushion pads (e.g., in marketing, sales, distribution, production, finance, and other functions).

Case Study Questions Answers

1. What should a customer be willing to pay for one of Curled Metal Inc.’s new cushion pads? What factors are relevant in calculating the willingness to pay in this situation? Prepare a specific monetary estimate of customer value in this situation.

The willingness of a customer should be to pay approximately $3,665 for the new cushion pad of CMI. The overall costing for driving the piles will be equivalent for Kendrick and will be less for Corey comparative to traditional pile-driving cushion pads when utilizing CMI cushion pads at $3,665 for each pad. It is essential for undertaking all costs, which differ based on product type as it assists in conceptualizing the maximum willingness of customers for paying the product price ceiling. In this regard, amount and cost of operable hours, downtime, and amount of operable hours needed for pile driving are encompassed as variable costs. It has been observed that these amounts will reduce the overall job of driving 300 piles for 40 feet toward the ground. They will fundamentally explore the monetary advantage for individually reaching the target predefined considering the stigma of industry around information sharing. 

Crumpled metal is an incessant metal wire that is compressed out and then woven into dense continuous small loops. This facilitates the metal to expand in length and width and gives it three-dimensional elasticity. Since it can be made of a variety of metals, such as copper, monel, and stainless steel, crumpled metal can endure almost any temperature or material. Stacking multiple layers can create shock absorbers, airflow adjustments, or HEPA filters. Tightly compressed coiled metal produces Slip-Seal for car use, or, when calendared (i.e. coiled metal ring is compressed between rolls to form a smooth, dense strip) and wrapped around a mandrel.

To get CMI pads used on the big, complex projects, they need to hit this group (both the large international firms and the smaller independents). Once this portion of the market is penetrated, the pads will begin to sell themselves due to their massive benefits, but an incentive to get these guys to take the bite and try the pads first is necessary. This will take a lot of direct conversation and other influencers promoting the CMI pads to sell these guys. Getting the Amalgamated Pile and Fitting corporation on board and seeking their interest in featuring our product on Pile Talks is a small way to get the word out and educate those in the industry about the pads, but it cannot be the primary focus due to not knowing who exactly those talks are reaching.

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