zurin industries
TRANSCRIPT
ZURIN INDUSTRIESAIR & COMPRESSORS DIVISION AKSHAY PANDEY 2014003
ANKUR MUKHERJEE 2014007NITIN GAVISHTER 2014ANUJ BHARGAVA 2014138APURV GOSAIN 2014139DIPANJALI BISWAS 2014143
About the company:
Switzerland based industry
Sales office in 23 countries
Sales: 5.2 Billion SFProfit: 426 Million SF
Industrial Plastics, diesel engines, Air and gas
compression and Industrial components
Mainly focuses on design and
development of industrial components
Industries :aerospace, automotive and
transportation vehicles
Product :
Air and gas compressors:Use: Industrial plants
Purpose : Regulating the flow of liquids and gases throughout the manufacturing plants and power stations
Areas of sale: 40% Europe and rest from Asia, Middle East and other countries
Type : Standard or specialty
SUPPLIER
ZURIN
OEMs/Others
Competitive advantage and suppliers:
Competitive advantages: Ability to solve complex
technical problems Product quality Durability
Suppliers:
Heavy dependencies on engineering and development skills of suppliers
Huge time/ R &D to develop products
Issue
Ericsson Metalworks increased price of XK1000 steel by 3 times
1.Fixed price
2.No disclosure of production cost
Zurin’s primary exclusive supplier
Swedish:Ericsson
Transparent pricing
Not enough production capacity to meet Zurin’s demand
French:Gordier
Risks involved
Dumping existing steel producer(Ericsson) and signing with someone else is a very time consuming process
Very few options Ericsson R&D unit is critical to success of Zurin
Recommendations
Negotiate with Ericsson for a linear increase in price of steel(for current pending order)
Zurin can negotiate on price terms by promising a increase in orders for XK1000 and XM5000 from Ericsson
Lobby Gordier board to increase their capacity. If needed, offer special partnership (R&D etc.), long term agreements
Look at proposals of Hiromishi Steel, Viktor Tredzk (long term) Pay Ericsson for their R & D expenditure