In the popular mid-range horizontal directional drill class, 20,000 lbs. – 50,000 lbs., Ditch Witch drills machine price average 10-20% higher than their sole domestic competitor. Purchased components are critical to the success of drill and historically account for nearly 50% of the unit cost. While sales of drills remain at a high level, at nearly 1,980 units per year from 2014 to 2016, the market characteristic of being an oligopoly allows competition to emphasize any difference where they excel, such as lower upfront cost of ownership. As with all products in today’s competitive purchasing environment, cost matters and with rising machine costs year over year due to purchased parts, even the most Ditch Witch loyal customers may possibly switch brands, which reduces sales, decreases market share and compromises the ability to win over customers from the other competitor. …show more content…
Currently, horizontal directional drills contribute to approximately 50% of Ditch Witch’s overall sales. From 2014-2016, the drill product line contributed an average of 54.3% of revenue to the organization, totaling nearly $453 million. While considered acceptable, the most recent drill project completed came in over $2,900 over the initial cost target. With an estimated annual production of 100 units, an approximate savings of $300,000 could be realized if the target could would have been met. With three new projects in the design pipeline and using the same percentage of target cost overage, an additional $521,000 could be
In addition, the bargaining power of the sources of inputs is high. The switching costs from one supplier to another are high because there are not many substitutes for the particular input for metal products. Besides, the number of suppliers who produce raw metals is small. The threat of substitute is high. There are many different kinds of substitutes for metal product company. These companies may also produce a large variety of product like Slade Company. Therefore, the substitute is low for this market. Only companies that produce high quality are able to not be substituted by the others.
· DeWalt got 70 % awareness rating. This in turn means that Black & Decker will not have to spend money to establish a new brand
Basically, I find it as a good fit for light to medium-duty hammering missions, and can surely perform impressively during asphalt cutting, rock demolition, and sidewalk
Current drilling technology was unable to penetrate the thick rock of southwest Texas and oilmen could only extract the surface layers of oil, unable to tap the vast resources that lay far below. Big Howard came up with the idea for a rolling bit, with 166 cutting edges and invented a method to keep the bit lubricated as it tore away at the rock. Later that year, Big Howard produced a model and went into business with his leasing partner, Walter B. Sharp, forming the Sharp-Hughes Tool Company. Rather than sell the bits to oil drillers, Hughes and Sharp decided to lease the bits out on a job basis, for the tidy sum of $30,000 per well. With no competitor able to duplicate this new technology, Sharp- Hughes Tool possessed a profitable monopoly over oil extraction. So quickly was the invention successful that in late 1908, the partners built a factory on a seventy-acr...
...drilling is not merely something that farmers desire, but it is imperative that they implement it in order to rid the economic struggles that burden rural counties. “A lot of agriculture is hanging on by its fingernails and people end up selling the farms because they can't afford to farm anymore," Roba, the farmer from North Abington Township, said. "At the very least, this makes life easier (Haggerty).”
Camar Automotive Hoist has built its reputation on a quality product in the Canadian market however in 2000 the company is facing the problem of sustaining future growth of its business. In an attempt to address this need of sustaining growth we recommend that Camar Automotive Hoist clearly defines its position as a safe and convenient scissor lift producer on international wheel alignment markets; and transfers its focus mainly on the US and the European Union markets. Our suggestion is to spotlight the US market by working closely with the wholesalers instead of using a direct sales-force; while exporting products to Europe by means of indirect exportation instead of through other ventures. By doing this, the company will efficiently allocate its resources and achieve its goal of sustaining growth gradually with low risks. The Canadian market potential is limited thus we believe that US market is a quick growth opportunity for us immediately with low risks while exploring the EU now will allow us to search for long term future growth.
The fracking companies are still profitable in fracking at a price of $45 per barrel. Established pipelines and other infrastructure is benefitting the drillers in these areas. Wells in the ‘stack’ are among the best performing assets according to Continental Resources Inc. Also the ‘Permian’, a major oil producing area has been reborn as a result of the combination of horizontal drilling and fracking according to the
The rivalry between existing companies is intense in the global furniture market and key industry players in Europe include Designs Inc, Galiform plc, Wal-Mart Stores Inc., Argos and others. However, Ikea today is the undisputed market leader in the furniture industry discount on the global scale. The threat of new entrants in the industry is low, and the chances of entrance of new competition Ikea is scarce because the current market is saturated and the significant amount of financial investments and experience are necessary to become a shop furniture discount on a global scale. The bargaining power of customers of Ikea is strong, as competition is intense and customers have a wide range of alternative options offered by
Drill-Bits success largely depends on the quality of its products. This has been apparent in both the home market and over seas. Its German manufacturer has kept the same standards as in the U.S. which has lead to a licensing agreement that has been completely satisfactory. Drill-Bit must emphasis the importance of this matter in the licensing agreement with Mexico. One problem that can arise is if the Mexican manufacturer does not comply with the integrity of the manufacturing process to maintain quality. This will lead to a gray market. This might happen if the Mexican manufacturer is not able to charge the same premium as in the home market. Since the U.S. licensor might have established such a good reputation of quality in the U.S. market it is able to command a substantial premium for its product there. In the licensing agreement with Mexico Drill-Bit’s should therefore make a provision that if its drill bits are not to standard, it will revoke its licensing agreement with Mexico.
DMC's potential loss of significant market share in the near and long term, of oil well pumping motors if DMC doesn't respond quickly and effectively to the expected change in motor specs for the industry.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
The second competitive force is the threat posed by substitute products; existence of other products outside the sphere of renowned products is likely to increase the likelihood of customers using alternative products. The substitute products in this case do not refer to similar products manufactured by a competitor, but to totally different ones that can replace those of a competitor. The third competitive force is the bargaining power of customers, which refers to the capacity of buyers to pressure the company and influence its pricing policies. The forth force is the bargaining power of suppliers who may exacerbate the cost of unique raw materials, or completely refuse to cooperate with the company. The last competitive force is the threat posed by established rivals, which ...
The American Oil and Gas Historical Society (2006) reviewed the difference between rotary and cable-tool drilling. “Instead of the repetitive lift and drop of heavy cable-tool bits, the rotary introduced the...
2. These entries will create an even greater divide in the market then there already is. We think that there is even more pressure to make a high quality and satisfying product for the customer every time. And because of the low barrier allowing more entries into the industries, it
Each blow from a Best Rotary Hammer Drill hammer movement is measured in Joules (J). The better the cost of this effect strength, and the better the 'bpm'