Dmc Case Write Up

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Business to Business Marketing Case analysis on “Dominion Motors & Controls, Ltd.” Submitted by: Group 1 Jayesh Jagtap (013EPGP2014) Pranav Dubey (016EPGP2014) Shishir Gupta (020EPGP2014) Problem Statement: What Steps, if any, to be taken by Dominion Motors and Controls Limited to maintain its share of the oil well pumping market? Analysis of the situation and problem: Situation: Motor Specifications: National Electrical Manufacturers Association (NEMA), a Non-profit organisation develops standard specifications for electrical equipment. However, it’s not mandatory for the manufacturer’s to adhere to the specifications specified by NEMA. Motor Specification Determinants: One of the major factors to determine the type of motor pump suited for Oil well pumping is the low winter temperatures as it requires a high starting torque. Changes in power rate schedule: Till 1983 the power companies charged a flat rate for supplying electricity regardless of the horsepower of motors. Hence Oil companies deployed motors with high horsepower due to high torque requirement. This results in overmotoring, subsequently low power factors. In 1984, Power companies have revised the rates to graduated schedule based on connected horsepower of an installation and also demanded their customers to improve low power factors by avoiding overmotoring. Steps taken by customers: Hamilton Oil Company is the largest oil company active in Canada and operating 30% of the total oil producing wells. Due to changes in Power rate schedule and speculation over penalties in future due to overmotoring, John Bridges, Hamilton’s chief electrical engineer initiated field tests on oil well pumping motors to identify the specification of economical motor. Findings by Bridges 1. 3 to 5 hp motor is sufficient to lift the fluid. 2. Minimum torque of 70 pounds-feet is required to energize the pump at
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