SBP 1 15 computron case - Professor John Murray PDF

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Professor John Murray...

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● What should be Computron's goal when bidding on the Koenig training computer? Why? Their main goal is to win the bid for Koenig to maintain their relationship with the brand as their supplier of computers. ● How does Koenig’s needs for a training computer differ relative to a process control computer? How do these differences affect their purchase decision?

● What are the strengths, weaknesses, goals for each competitor in their bidding on the computer, and what are their likely bid prices? ● What price should Computron bid for Koenig’s bid request? Goals: -

Protect the brand Keep the customer

Computron (30% market share) ● Position → premium option ● Price → $1.2 million - Both the price and position show that we want to bid high ● Tariff (US company selling in Germany) ● Building plant in Germany (eliminate tariff) ● 80% sales to Koenig (biggest European client) Koenig (customer) ● ● ● ● ●

$4 million future sales Sole supplier 25% of Europe Training computer Process control reliability

Digitex (competitor) (17.5% market share) ● Cheap ● Lower quality ● No success with Koenig EDAG (competitor)(12.5% market share) ● Young company ● Comparable quality → long term threat ● More competitive price...