Cumberland metal industries case analysis. Cumberland Metals Case Study Free Essay Example 2022-10-28
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Cumberland Metal Industries (CMI) is a company that produces metal parts for a variety of industries. It has been facing a number of challenges in recent years, including increasing competition, rising labor costs, and declining demand for its products. In this essay, we will conduct a case analysis of CMI to identify the root causes of these challenges and recommend potential solutions.
One of the primary challenges facing CMI is increasing competition. The metal parts industry is becoming increasingly saturated, and CMI is facing stiff competition from both domestic and international companies. This is leading to lower prices and thinner margins for CMI, as it struggles to differentiate itself from its competitors.
Another challenge for CMI is rising labor costs. The company has been hit hard by the rising minimum wage and increased healthcare costs, which have eaten into its profits. This is particularly concerning given that labor is a significant portion of CMI's costs, and any increase in labor expenses has a direct impact on the company's bottom line.
A third challenge for CMI is declining demand for its products. Many of the industries that CMI serves, such as construction and manufacturing, have been struggling in recent years. This has led to a decrease in demand for CMI's products, which has further exacerbated the company's financial difficulties.
To address these challenges, CMI could consider a number of potential solutions. One option is to focus on expanding into new markets, such as the renewable energy sector. This could help to diversify the company's customer base and reduce its reliance on struggling industries.
Another option is to invest in technology and automation. This could help to reduce CMI's labor costs and increase efficiency, improving the company's competitiveness and profitability. Additionally, investing in research and development could help CMI to develop new and innovative products that could differentiate it from its competitors.
Finally, CMI could consider implementing cost-cutting measures, such as streamlining its operations and reducing non-essential expenses. While these measures may not be a long-term solution, they could help to improve the company's financial performance in the short term.
Overall, Cumberland Metal Industries is facing a number of challenges that are impacting its financial performance. By considering a range of potential solutions, such as expanding into new markets, investing in technology and automation, and implementing cost-cutting measures, CMI can work to overcome these challenges and improve its long-term prospects.
Cumberland Metals Case Study Free Essay Example
By offering a 15% discount, the cost could be comparable to the most expensive asbestos pads. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. These five forces includes three forces from horizontal competition and two forces from vertical competition. This amounts to 290M to 390M feet of piles driver annually, Then he also assumes that a set of metal pads would drive 10,000 feet. And its ratio with corruption and organized crimes.
Cumberland Case Analysis Free Essay Example 1383 words
Using their estimate of each set being able to drive 10,000 feet of piles, they would need to produce 29-39 thousand sets annually, or 14,500-19,500 pads monthly, which is 580%-780% more than what they currently have the capacity for. Currently the industry uses asbestos pads and is the only form of competition the company faces. In the pile-driving business there are currently six purchase influencers. On top of that, it was noticed that the wood blocks often ignited due to constant pounding which. Time would be wasted when waiting for them to cool down, and they would need to be switched far more often than the curled metal ones.
These could be made through the use of different kinds of metals which allowed it to be able to handle any temperature or chemicals. They developed a new product, the curled metal pad for pile-driving, which shows a lot of sales potential for the company. Moreover, it is also called Internal-External Analysis. None of the distributors sold them as a work-saving tool, only as a necessity. The critical issues that company shall prepare a sound solutions for relate to product pricing, market potential, market penetration strategy and competitors opposition. Market penetration is designed to go after the greatest percentage of market share possible right from the start.
Cumberland Metal Industries Case complianceportal.american.edu
After testing, their prototype cushion pads, consisting of curled metal, performed superiorly to asbestos pads, which are currently the industry standard compliment product to pile drivers. This need will not arise if the industry is informed correctly and customers recognize the value the product brings to their projects. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies. They developed and sold a product under the trademark Slip-Seal and gained an 80% market share in the industry. The hammer is responsible for driving the pile to an adequate depth inside the ground. Finally, the independent pile-driving contractors are the main purchasers and they will do whatever they can to increase their profit. To compare apples to apples, the cost of the required number of asbestos pads to drive 10,000 ft.
For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. . We see the company considering the penetration to the new market with a new product. On a broad outlook it appears that textiles have no application other than apparel purposes. The Cumber-Coil weighed half what the asbestos pad did and boasted a 33% faster driving time, 60% reduction in heat generated, and 400% less time wasted changing pads. The copmany is likely to face competition from the asbestos pads market a substitute product 3.
That is because they don't want to be reliant on the industrial and product. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused. One important aspect of making sure this approach works is to patent their product to protect itself from competitors. Cumberland outsources their raw materials for their products.
Having products that have existing markets have allowed them to get by with basic promotional and advertising efforts, however their new cushion pads are in an unknown market and need new advertising. The purpose of the cushion pad is to prevent damage occurring to the hammer or pile due to the shock of the hammer. They could experience delays on production or a loss in revenue. It sums up the total cost of the inure production process and then adds a portion of it as profit. Manufacturers and consultants are strong influencers, but are not likely purchasers. Asbestos pads would heat up drastically when used, making handling them very difficult after when switching sets. There may be multiple problems that can be faced by any organization.
Cumberland Metal Industries: Engineered Products Division
Contractors of all sorts are the most likely purchasers, but tend to be the least educated about the pads. This time, highlighting the important point and mark the necessary information provided in the case. Cumberland has also produced the same product for most of their career, but. The buyer power is high if there are too many alternatives available. The challenging diagnosis for Cumberland Metal Industries and the management of information is needed to be provided. The last segment, the rental companies, would likely not have a strong or positive interest in these pads since they make their money from hourly rental rates and the Cumber-Coil pads would significantly reduce the time per job that the contractors would need their equipment. The time needed to change the pad set is the same as the previous test, therefore the total time needed is minutes-16.
Therefore, they must determine a pricing strategy from scratch. Since the rate for equipment rental is the same as the Colerick test table A , we can calculate the amount of money saved by reducing job time by 15 hours. Pest analysis is very important and informative. Another factor Is that a set of curled metal pad contains 6 pad and can be used to drive 10000 feet. Changes in these situation and its effects. However it does not recognize the savings that the cushion pad provides. After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.
Cumberland Metal Industries Case complianceportal.american.edu
In this case, the market-penetration strategy could backfire if the demand exceeds their capacity. Despite the fact that there's no such a product on the market at the moment. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Asbestos pads were comparatively very inefficient to use in the workplace and posed health risks to the workers on site exposed to them.