Cumberland Metals

Cumberland Metals: Case Study Analysis

Tim Hayes
© 2000-5 Timothy A. Hayes All Rights Reserved 602/315-8696

Saturday, January 22, 2005

DISCLAIMER: I have, to the best of my abilities, researched, analyzed, organized, and presented findings for this case study.   However, it must be noted that irreconcilable discrepancies within the available data made some of the calculations both a daunting and imprecise task.   This is especially true in regards to revenue and cost figures.   Please be aware of the influence of unreliable cost and revenue data in regards to the pricing, production, and marketing recommendations presented in this study.   However, it must also be noted that many of the discrepancies are legitimate differences in data collection methods and tests used in the case.

Introduction

      Cumberland Metals faced a both a pricing and channel marketing decision for metal pile cushions utilized during pile driving.   Cumberland’s approach to pile cushions had significant efficiency advantages over other asbestos methods that were currently available in the 1979 market.   However, Cumberland faced several barriers to entry into the pile cushion market.   The primary barrier was that most companies viewed role of cushions as a necessary accessory or tangent item instead of viewing cushions as a potentially value adding or cost reducing part of pile driving.   In order to penetrate the market, Cumberland would have to alter the lackadaisical view of pile driving cushion pads for the opinion leaders, engineering firms, and contractors involved in the decision process.
Key Stakeholders

      There were several stakeholders in the both in the pile driving industry and within Cumberland Metals.   First, Cumberland Metals and the welfare of its employees were major stakeholders in the pile driving cushion pricing and marketing decision.   Cumberland metals faced a declining market in Slip Seal, their main source of revenue.   A new successful product...