Corrective Steps: Solutions for Muller Lehmukuhl: Essay Example
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Product for sale: fasteners
- Â Japanese entrant in the European market M/s Hiroto Industries, sold fasteners at price 20% less than that of Muller Lehmkuhl, with same quality products.
- ML offered fasteners which were compatible to assemble only with their attaching machines, but Hiroto Industries manufactured fasteners which are compatible even with Muller Lehmukuhl’s attaching machines.
- This compatibility and a better price range made the customers slowly drift towards Japanese manufacturer’s fasteners.
- Hence, this has also had became a better deal for the distributors, which later preferred Japanese make.
Solutions for Muller Lehmukuhl:
- ML was bundling the price of the attaching machines with their fasteners price, if this is unbundled
...the price of the fastener will eventually come down.
- The price of the fasteners can be reduced by 20% without compromising with the quality of the products ML will still make a profit range of 38% – 48% in its product range Product Cost Estimate:
- As ML had a very strong R & D, a fastener can be innovated which can be easily fitted without the help of any attaching machines.
- The attaching machines can be upgraded by ML by making it compatible with the fasteners manufactured by various manufacturers in the market, thus a separate market for ML’s attaching machines will be created.
- Loyalty rewards can be given to its customers who are complying with loyalty norms, also a better purchasing price can be offered to these customers for a various range of orders.
Profit on Fastener Sales:
- Sale of Fastener
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