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Title Thesis December 2011 : Global Business Engineering
Author Ravn, Tina Okholm (Copenhagen University College of Engineering, IHK)
Supervisor Flyger, Charlotte Stisen
Kohsel, Poul
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Eksport
Education Bachelor of Engineering
Publication date 2011-12
Abstract This thesis examines whether FLSmidth, through the establishment of 35+ local service units and determining a new sales price strategy on their service products, will become more competitive, capture additional market shares, and increase the profit on the service market. In addition, the thesis highlights the reasons for why FLSmidth is interested in creating the local service units, and why FLSmidth wants to implement a new sales price strategy on their service products. The first local service unit will be created in Turkey and analyses regarding the location, operation, and future will be outlined. Furthermore, it will be discussed whether the generic concept can be transferred to other countries. The development of the generic pricing strategy for FLSmidth's service products will be based on the service product Comprehensive Kiln Inspection. The most significant parameters influencing the pricing decision will be prepared, and furthermore a new pricing strategy will be implemented in FLSmidth. Finally, a discussion of whether the chosen generic pricing strategy can be utilized by other service products will be prepared.
The creation of the local service unit is an attempt to fulfill the strategy of increasing face time with the customers. The local service unit will be located near Istanbul in Turkey and will as a start provide low complex technical service, and will eventually offer larger service solutions. Furthermore, the analyses showed that each local service unit demands an individual market analysis to create the proper set up for each unit. FLSmidth needs to decide on a new pricing strategy, since the current pricing of service products in FLSmidth is imperfect, which is currently based on management's experiences and since no former pricing analyses have been made. The cost base of the service product and the market situation in Turkey were discovered to be the two largest influencers on the pricing decision. The best suitable pricing strategy for the Comprehensive Kiln Inspection is a competition based pricing strategy, however the generic pricing strategy cannot be utilized by other service products without further analysis.
This project concludes that FLSmidth, with the establishment of the local service unit and the development of a new pricing strategy, will become more competitive, be able to capture additional market shares, and increase the profit on the kiln service market.
Pages 144
External partner Ledere og medarbejdere i private virksomheder
Admin Creation date: 2011-12-13    Update date: 2012-11-16    Source: ihk    ID: ihk-10466624    Original MXD