Premium Essay

Abb Electric Case

In:

Submitted By benhont
Words 1843
Pages 8
MARKETING ENGINEERING FOR EXCEL



CASE



VERSION 2.0.3

Case

ABB Electric Segmentation
By Gary L. Lilien & Arvind Rangaswamy
1. Before beginning any case, students should familiarize themselves with the model being used. Marketing Engineering for Excel comes with tutorials that demonstrate the capability of each model. The tutorial can be found under each model within the ME►XL menu after starting Excel. These tutorials are designed to work with our OfficeStar examples which are located in the My Marketing Engineering directory, usually installed in My Documents during software installation. The data required for this case is located in the My Marketing Engineering directory (usually located within My Documents): ABB Electric Data (Customer Choice).xls

2.

ABB Electric History
In March 1970, ABB Electric was incorporated as a Wisconsin-chartered corporation with initial capital provided by ASEA-ABB Sweden and RTE Corporation. The new firm’s management was to operate independently of the parent company. The company mission was to design and manufacture a line of medium-sized power transformers to market in North America. The firm produced such electrical equipment as transformers, breakers, switchgears and relays used in distributing and transmitting electrical energy. Four main types of customers buy this electrical equipment: (1) investor-owner electrical utilities (IOUs), the largest segment; (2) rural electrification cooperatives (RECs); (3) municipalities; and (4) industrial firms. Most of ABB Electric’s customers were electrical utilities.

Situation in 1974
After three years of operation, ABB Electric was approaching the breakeven point when it encountered a serious problem. Its market share in 1974 was around six percent. In 1974, total industry sales of electrical equipment dropped 50 percent compared to 1973. Further, ABB Electric

Similar Documents

Premium Essay

Abb Electric Case Study

...Immediately, we would go to through the ABB descriptor data and note the companies with the highest annual spend at ABB. We assume that these companies are existing ABB customers and are already using ABB as main provider of goods. We would then try to note any correlations with annual spend and the district in which the customer is located. The data shows that of 88 responses provided by customers in ABB’s area, 18 of these responders are already working with ABB. 11 of the 8 existing customers are spending over $500,000 per year on ABB goods which indicates loyalty. To increase market share, ABB would benefit mostly from capitalizing on its “competitive segment’s” by taking customers from competitors. Of ABB’s existing customers we would shift out attention to the customers who are spending the least amount and direct the new marketing program to not only keep them as loyal customers but to increase their annual spending volume with ABB. Next, we would shift our attention to winning over non-existing customers. In deciding on which non-customers we would direct the new marketing program to, we would take note of which districts ABB is already enjoying the most success in and focus marketing efforts in these districts as ABB’s brand has clearly been established here. ABB would want to use the same marketing strategy that it is now using because it has already experienced success when the attempt to get new business. As per the data, ABB has its highest volume of customers in...

Words: 970 - Pages: 4

Premium Essay

Quantitative Marketing

...Marketing engineering work report By jiahang 2012.6. Team members 唐田伟 09093914 (leader) 任静 09093926 高承明 09093904 雷鹤 09093907 想开林 09093972 BrainCell Internet Advertising • Solver Introduction BrainCell is positioned to sell cell phones, call plans, and mobile services to end-user customers using the Internet exclusively as its unique sales channel (though it also will employ call centers to some extent, mostly for technical upport and billing questions). Partneri ng with one of the largest available communication networks in Europe, BrainCell follows the same business strategy for its cell phones that Internet banks use with their banking operations: reducing its operational costs through the absence of physical branches and local infrastructure and then using these saved costs to reduce prices and increase competitiveness. As a relatively new offering, one of the challenges facing the company is identifying and targeting prospective customers. Market research shows that the customers who are most likely to go to the Internet to fulfill their mobile communication needs tend to be well educated, wealthier than the average population, heavy Internet users, and already technically familiar and equipped with cell phones. Given this target population, it seems natural (and cost effective) to use the Internet as a key communication channel to advertise the offerings and launch a promotional campaign. BrainCell recently began to develop promotional...

Words: 4697 - Pages: 19

Premium Essay

Abb Case

...ABB Electric Segmentation - Group Case Analysis Team Members: Emeka Ejika John Marceaux Brandon McNabb Todd Teepell Brandon Woods Suppose you are the regional sales manager for ABB Electric, and you have been given a budget for a supplementary direct marketing campaign aimed at 20% of the companies in your region 1. At present, you have information on the Descriptor Data Tab of the ABB Electric Data (Customer Choice).xls spreadsheet about the location of customers (districts 1, 2, and 3) and the sales potential of each account of prospect. Based on this information alone, to what companies would you direct the new direct marketing program? Specify the accounts and customer or prospect types. In order to determine which potential customers to target with a direct marketing campaign we first searched the ‘ABB Descriptor Data’ and identified Customers that we are currently serving to quantify ABB’s market penetration in each District. We then sorted the remaining Customers (Competitor’s clients) by Annual Purchase Volume as it is the only quantifiable metric provided. Next we cross-referenced that with our market penetration in each District. While ABB’s penetration is deepest in District 1 relative to number of customers serviced, District 2 provides the largest source of Annual Purchase Volume by a margin of three times the next closest District (D3). This extreme disparity is the result of one customer with a very large Annual Purchase Volume that is over seventeen...

Words: 1981 - Pages: 8

Free Essay

Abb's Questions

...ASEA BROWN BOVERI ABB (ASEA Brown Boveri) is a multinational corporation headquartered in Zurich, Switzerland, operating mainly in robotics and the power and automation technology areas. It ranked 158th in the Forbes Ranking (2013). ABB is one of the largest engineering companies as well as one of the largest conglomerates in the world. ABB has operations in around 100 countries, with approximately 140,000 employees in October 2015,[3] and reported global revenue of $39.8 billion for 2014.[1] ABB is traded on the SIX Swiss Exchange in Zürich, Nasdaq Stockholm and the New York Stock Exchange in the United States.[4] ABB's Indian unit, ABB India Limited, is traded on the National Stock Exchange of India and on the Bombay Stock Exchange. The Indian subsidiary of ABB has a market capitalization of over $4 billion.[5] HISTORY ABB resulted from the 1988 merger of the Swedish corporation Allmänna Svenska Elektriska Aktiebolaget (ASEA) and the Swiss company Brown, Boveri & Cie (BBC); the latter had absorbed the Maschinenfabrik Oerlikon in 1967. CEO at the time of the merger was the former CEO of ASEA, Percy Barnevik, who ran the company until 1996. ABB's history goes back to the late 19th century. The company was incorporated by Ludwig Fredholm in 1883 and Brown, Boveri & Cie (BBC) was formed in 1891 in Baden, Switzerland, by Charles Eugene Lancelot Brown and Walter Boveri as a Swiss group of electrical companies producing AC and DC motors, generators, steam...

Words: 2501 - Pages: 11

Premium Essay

Educational Research

...various types of electrical machines, their operations, and applications, as well as the method of determining their parameters. Various ways of protecting electric machines against overloads and mechanical faults are also highlighted. It is anticipated that the work presented in this paper will be of immense benefit to practicing engineers especially in areas of machine design, maintenance, and protection. (Keywords: electrical machines, operation design, maintenance, protection, stator) the stator and alternating currents are induced in the rotor by transformer action. In the synchronous machine, direct current is supplied to the rotor and Alternating Current (A.C.) flows in the stator. On the other hand, a D.C. machine is a machine that is excited from D.C. sources only or that itself acts as a source of D.C. [5]. It is a common practice in industry to employ A.C. motors whenever they are inherently suitable or can be given appropriate characteristics by means of power electronics devices. Yet, the increasing complexity of industrial processes demands greater flexibility from electrical machines in terms of special characteristics and speed control. It is in this field that the D.C. machines, fed from the A.C. supply through rectifiers, are making their mark. In this paper, we shall discuss the various types of electric machines,...

Words: 3348 - Pages: 14

Free Essay

Marine Environmental Impact and Energy Use

...Marine environmental impact and energy use Bridging the environmental gap in shipping Faced with current and anticipated legislation, increasing customer environmental awareness among cargo owners and passengers plus fuel cost rises, there has never been a better time for the senior management of shipping companies to rationalise their company’s energy use. Stuart Melling, manager for marine and crane service at ABB Ltd., examines some of the options. From emissions reduction, improved fuel use through to the environmental impact of new builds, the shipping industry faces a challenging future. Emissions reduction In 2007 the global shipping industry is estimated to have emitted 1,046 million tonnes of CO2, which is some 3.3 percent of total global emissions. The International Maritime Organisation (IMO) predicts a 250 percent rise in emission levels as a result of expanding sea transport, if suitable energy efficiency policies are not implemented. Yet legislation has in many respects by-passed the shipping sector as reflected by its exclusion from international agreements such as the Kyoto protocol. Even though shipping is recognised as the cleanest form of transporting goods, with the least damage per tonne of cargo, ship exhaust emissions are regarded as the industry's biggest polluter. So although the marine industry has consistently resisted taking any significant measures to reduce its greenhouse gas emissions, it now looks like it will finally bow to...

Words: 2136 - Pages: 9

Premium Essay

Case Abb

...Case 1 ABB Electric Segmentation Group 7C Context ¡  ABB is a producer of electrical equipment. ¡  ABB established a new marketing strategy based on analytical techniques (MKIS)to improve its results. ¡  ABB management segmented its marketing into 4 categories using Choice Modeling : Loyal, Competitive, Switchable and Lost. ¡  ABB has been given a budget for a supplementary direct marketing campaign aimed at 20% of the companies in the region composed of 3 districts. Outline 1.  Customer targeting with limited data 2.  Choice-based model 3.  Limits of the model and suggestions I. Customer targeting with limited data •  Introduction to the market •  Limited data targeting : no geographical distinction •  Limited data targeting : customers targeted The Market ¡  Market size : $ 102 759 ¡  ABB’s share : $ 21 524 ¡  4 mains actors in the market : ¡  ¡  ¡  ¡  ABB GE Westinghouse Edison Edison# 26%# Market'distribu-on' ABB# 21%# ¡  88 companies ¡  Goal : Attract 20% of the customers (i.e. 18 companies) Wes-ngho use# 29%# GE# 24%# Limited data targeting – No geographical distinction ¡  The best targets seem to be district 2 (customers of Westinghouse and Edison) and district 3 (customers of GE) as they represent the biggest market share when combined. ¡  However, all districts present a high heterogeneity of their clients (from $226 to $10997 for the district 2). ¡  Objective : increase market share by targeting “big whales” i...

Words: 1399 - Pages: 6

Free Essay

Term Paper

...U.S. ELECTRIC GRID Infrastructure Security and Energy Restoration Office of Electricity Delivery and Energy Reliability U.S. Department of Energy April 2014 Update Large Power Transformers and the U.S. Electric Grid This page intentionally left blank. DOE / OE / ISER April 2014 ii Large Power Transformers and the U.S. Electric Grid FOR FURTHER INFORMATION This report was prepared by the Office of Electricity Delivery and Energy Reliability under the direction of Patricia Hoffman, Assistant Secretary, and William Bryan, Deputy Assistant Secretary. Specific questions about information in this report may be directed to Dr. Kenneth Friedman, Senior Policy Advisor (kenneth.friedman@hq.doe.gov). Tiffany Y. Choi of ICF International contributed to this report. The U.S. Department of Energy would like to acknowledge the following reviewers for their contribution to this report:  ABB  American Transmission Company  Bartley, William H., Hartford Steam Boiler Inspection and Insurance Company, A member of the Munich Reinsurance Company  North American Electrical Reliability Corporation  Ontario Power Generation  Scott, Daniel  U.S. Department of Commerce  U.S. Department of Homeland Security  U.S. Federal Energy Regulatory Commission Cover photo sources: Large power transformer photo: Siemens.com High-voltage transmission lines photo: Utilities-me.com DOE / OE / ISER April 2014 iii Large Power Transformers and the U.S. Electric Grid ...

Words: 20748 - Pages: 83

Premium Essay

Forces and Trends Research

...Research Firms that have achieved long-term profitability and sustainability acknowledge that strategic management is an enterprise-wide imperative. The dynamism, ever-evolving, and ever-threatened landscapes of today’s business environments make acquiring the knowledge of strategic management, or at least possessing a strategic mind-set, necessary for all employees. Pearce and Robinson define strategic management as the “set of of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives” (2004, p.3). This paper reviews six firms and the forces and trends in the remote and industry environments that affect them. The firms are Wellpoint, Inc, The Alzheimer’s Association, ABB Ltd., The Beth El Synagogue. AkzoNobel and Steinway Musical Instruments, Inc. Specific areas of focus within the remote environment include economic factors, social factors, buyer power, technological factors, political factors, ecological factors, and entry threats. Specific areas of focus within the industry environment include buyer power, product differentiation, industry structure, substitute products, entry threats, powerful buyers and suppliers, and jockeying for position (Pearce and Robinson, 2004). Research in forces and trends allows a corporation to better understand their [pronoun agreement: since the antecedent (corporation) is singular, the pronoun (their) must be singular {his or her}] potential for maximizing profits; therefore...

Words: 9195 - Pages: 37

Premium Essay

Operation Management

...knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail. We refer to this purposeful creation as the “value chain architecture” and propose five fundamental decisions that define the latter: (1) the nature of value provision (driven by the core competence of the firm), (2)...

Words: 8254 - Pages: 34

Free Essay

Smart Grid Industry

...benefits associated with smart grids are as follows: • Efficient power transmission • Faster recovery from power disruptions or failures • Better integration with other power generation systems (e:g. renewable energy) Driving Forces and Trends Capacity- growing demand According to International Energy Agency, $6 trillion investments will be needed to satisfy the global demand between now and 20301. Boston Consulting Group predicts that by 2020 there will be 40 million electric cars in the US. This mean that a robust infrastructure is needed to charge potentially millions of batteries. This will clearly put higher demand on the electrical systems. (www.abb.com) Reliability- Reliable operation According to the US Department of Energy power outages and interruptions in the US electrical supply cost $150 billion every year. (www.nist.gov) A reliable system is needed that can detect and isolate the outages, containing them before they become large blackouts. Also a system that ensures electricity resumes quickly in case of any disruptions. Efficiency- Energy Saving There are various steps involved between energy production and its transportation and distribution to the end user. 5-10% of energy is lost...

Words: 2071 - Pages: 9

Premium Essay

Asdad

...2/20/2015 Top 5 Robotic Applications in the Automotive Industry Robotics Industry News, Applications and Trends Official blog of the Robotiq company Emerging Applications in Robotic Industrial and Service Blog TOP 5 ROBOTIC APPLICATIONS IN THE AUTOMOTIVE INDUSTRY Posted by Mathieu Bélanger­Barrette on Feb 4, 2014 10:14:00 AM Tweet 16 Share 73 Like Share 25 2 For many years the automotive industry has been well known for its intensive use of industrial robotics. Since the implantation of the first industrial robots in the 1960s, a lot of things have changed. These days, the production lines need to be more efficient, flexible and precise. Many enhancements have been made on production lines over the last few years to help workers in their daily tasks. We took a look at the latest robotic applications in automotive manufacturing and here are the top 5 applications that grabbed our attention. 1) ROBOTIC VISION During the production of the 2013 Ford Escape, the company decided to introduce a robotic arm with "eyes". The laser and camera placed in an array on the robot wrist, are able to see exactly where to install the parts on the car body. By giving instant feedback to the robot; the windshields, door panels and fenders can be applied more precisely. The big innovation of this technology is that industrial robots are now able to put a proper offset on the installation of a part. Therefore, if there is any variation in the production, the robot can adapt its installation...

Words: 1602 - Pages: 7

Premium Essay

Anti Dumping

...Commerce will be scheduled to make its Countervailing duties and antidumping duties preliminary determinations in March and June 2012, respectively, unless extended. The U.S. government recently decided to no longer collect antidumping duties on imports of stainless steel sheet and strip in coils (SSSSC) from Germany, Italy and Mexico. This action follows from a recent vote of the U.S. International Trade Commission (ITC) in connection with a “sunset review” of existing antidumping duty orders on imports of SSSSC from these three countries, as well as from Japan, Korea and Taiwan. The United States on Friday set hefty preliminary anti-dumping duties on large power transformers made in its future free-trade partner South Korea and used in the electric utility industry. Antidumping duty investigations: Large residential washers are automatic clothes washing machines with a cabinet width (measured from its widest point) of at least 24.5 inches (62.23 cm) and...

Words: 1430 - Pages: 6

Premium Essay

Cost Accounting

...According to the Beyond Budgeting by Hope & Fraser, they defined budget as the “year-end profit forecasts”. Budgets have been using by companies for years since decades ago as a tool for management to use to achieve its strategic goals. A company plans its expedition toward its strategic goal in a planned method, and its preparation for the expedition with a strategic plan called a budget. Critics of budgets claim that budgets are bad for business and no longer sufficient and are “fundamentally flawed” as a planning and control model in today’s complex and highly unpredictable business environment (McNally, 2002). Stewart (1990) claims that experts criticize budgets are being insufficient. According to him, “Budgets, says experts, control the wrong things, like head count, and miss the right ones, such as quality, customer services and even profits”(Stewart, 1990, p. 179). The Business Finance magazine published an article title “The Budget (1922-2009) claims that the budget is “dead”. The writer, Jack Sweeney argues that it is not useful and appropriate to the industry’s 20th-century management anymore. Prendergrast (2002) lists out the problems which are facing by the organisations with compiling the budgets for planning and control purposes. First, a lot of guesswork has to be done in the budgeting process. It is a hard work for the managerial staffs to complete the budget in today’s highly challenging business world. Second, it is fixed and inflexible, and can quickly...

Words: 2166 - Pages: 9

Premium Essay

Budgeting

...“The traditional budget is a rigid tool and therefore be discarded in practice”. Should the traditional budgetary model be abandoned as suggested above? Introduction What is budget and budgeting? Budget is a financial plan, which is tailored individually for each entity covering specific future period of time and which enables to determine manager’s targets and to predict the consequence of that specific financial period (Langfield-Smith, et al., 2006). Budgeting has been recognized as one of the most significant concepts used for planning and controlling organizations performance since the early 20th century. As a process, budgeting comprises of a set of activities and procedures that undertake the development of a budget. Budgets are used by corporations to serve various operational and functional purposes that include facilitating in planning process, predicting future development, simplifying communication, allocating resources, motivating employees and controlling operations. The process is effectively completed through the evaluation of performance indicators and incentives (Weber & Linder, 2005). Consequently, organizations recognized budgets as a key element in management control systems (Libby & Lindsay, 2007). Background and definition From the 18th to 20th century, traditional budgeting has set a range of common goals and institutions. It can be defined as “an annual, incremental, conducted on a cash basis in the form of line items which...

Words: 2391 - Pages: 10