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Dominion Motors Case Study

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DOMINION MOTORS & CONTROLS, Ltd.

DOMINION MOTORS & CONTROLS, Ltd.

M
M
Jamahl A. Grace
Jamahl A. Grace

Dominion is a large company that produces a line of motors, motor control units, and panel board units. They also acquired over 50% of the market in northern Canada in 1973. Belief for the success of this company is thought to have come from one individual who was hired with the company. Due to his market acquired skillset he was able to drive the company in a positive direction and steer away from the competition.
Power companies implemented a graduated monthly base charge per HP at installation, to mitigate inefficiencies caused by over motoring in order to improve power factor. Upon the announcement of this change, the head of Hamilton's EE department conducted testing on motors from different manufactures and used starting torque as the deciding parameter, in order to define the specifications of a motor which could be used most economically.
The problem is that DMC's largest consumer of oil well pumping motors has ranked them the#3 supplier, and not only could this impact purchasing from this customer which in this instance is Hamilton, but other smaller companies could follow this large company for their purchasing decisions, so that they get the benefit of copying their R&D decisions. John Bridges, the chief electrical engineer of Hamilton Oil Company, has concluded through motor testing that DMC competitors Spartan Motors and the Universal Motor Company of Canada offer the first and second choice motors on the market, respectively. DMC’s positions the third choice could prove quite detrimental to its market share because Hamilton is the largest active oil company in Canada, and Bridges is extremely influential in Hamilton’s purchasing policy. The test results will probably carry significant weight throughout the

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