Carrier Corporation—Strategy Evolution for the Small Commercial Rooftop

29 Pages Posted: 21 Oct 2008

See all articles by Andrew Boynton

Andrew Boynton

International Institute for Management Development

Mark R. Eaker

University of Virginia - Darden School of Business

Michael E. Zimmerman

University of Colorado at Boulder

Abstract

Carrier must respond to rapidly changing market conditions. Its strategy options are complicated by the different objectives of Marketing, Manufacturing, Engineering, and Distribution. The case leads the student to understand the context within which re-engineering decisions are made.

Excerpt

UVA-BP-0336

CARRIER CORPORATION—STRATEGY EVOLUTION

FOR THE SMALL COMMERCIAL ROOFTOP

It was April of 1993, and Ted Cherubin, product manager for the 48/50 small commercial rooftop units, needed to decide how to best adapt the two‑tier strategy currently being used to position them in the marketplace. The Weathermaster 48 (gas heat/electric cooling) and 50 (electric cooling only) units were repositioned by his marketing group in 1991 and 1992 with a low-tier and high-tier version of each model.

We need to decide if we have a great product series which we should continue to expand or if we should just concentrate one part of the product line. How do we get the marketplace excited about this new product now that they have had a taste and the reception hasn't been as dramatic as we expected?

He considered the pressing issues. Some of Carrier's distributors felt there wasn't enough demand to justify selling the high-tier model and that the low-tier wasn't well configured for the most price-sensitive customers. The National Accounts group wanted to move ahead with more models customized for their big clients. Manufacturing complained that excessive model variation was threatening their ability to produce Just-in-time. Finally, a growing focus at Carrier on improving coordination for international sales meant the units had to be effectively managed for export to Europe.

. . .

Keywords: competitive decision making, strategic planning

Suggested Citation

Boynton, Andrew and Eaker, Mark R. and Zimmerman, Michael E., Carrier Corporation—Strategy Evolution for the Small Commercial Rooftop. Darden Case No. UVA-BP-0336, Available at SSRN: https://ssrn.com/abstract=907794

Andrew Boynton (Contact Author)

International Institute for Management Development ( email )

de Bellerive 23
PO Box 915 CH-1001
Lausanne
Switzerland

Mark R. Eaker

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
703-995-2166 (Phone)

HOME PAGE: http://www.darden.edu/faculty/Eaker.htm

Michael E. Zimmerman

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

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