Omni Case Study

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Omni Case Write Up Situation Gentech is an office equipment company that manufactures a variety of office equipment. It is the world leader in the industry with sales over $4.2 billion. They are an extremely important client for Omni and its annual purchases from the company occasionally totaled up to $800K. They have experienced erosion of market share and profit margin due to foreign competition, and have fallen behind in utilizing advanced electronics design and manufacturing techniques. For this reason they are modernizing and automating their manufacturing facilities over 5 years at a cost between $45-$60 million. Gentech ordered a soldering line from Ace Electronics to automate a soldering process at a cost of $3 million. They need a robotic test cell as an essential component of this process. It’s the company’s first attempt at robot automation, and the cell was estimated to cost around $750K. The main competitors before the final bid stage were IAS, Robotic Automation, and UA Corporation. In the final bid stage, a committee had narrowed the field down to Omni and UA and that UA had just edged out Omni. Cost did not play a large factor in the decision since both companies came in at about the same price. Problem Client Gentech ultimately purchased the robotic test cell from a competitor instead of from Omni Automated Systems, which also means a loss of future robotic work cell sales with them. Bob Waters, the sales representative that worked and lost the sale, has a low 20% success rate in selling the product. Doug Barnum needs to determine where the flaws lie in his sales strategy that resulted in the loss of this large opportunity. Key Issues and Solutions 1. Misidentified priority buying criteria overall & barely revised final bid after learning new information. a. Bob assumed price would be the main factor, when it was not. Meetings throughout the

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