Wyler Logistic Solutions Corporation Has Developed a New Forklift-Model IM-40-That

question 107

Essay

Wyler Logistic Solutions Corporation has developed a new forklift-model IM-40-that has been designed to outperform a competitor's best-selling forklift. The competitor's product has a useful life of 40,000 hours of service, has operating costs that average $1.30 per hour, and sells for $139,000. In contrast, model IM-40 has a useful life of 120,000 hours of service and its operating cost is $0.80 per hour. Wyler has not yet established a selling price for model IM-40.
Required:
From a value-based pricing standpoint what is the differentiation value offered by model IM-40 relative to the competitor's offering for each 120,000 hours of service?

---

Definitions:

Role Expectations

The behaviors, obligations, and privileges associated with a social role or position within a group or society.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered "normal" or the standard in a particular social group or society.

Measurable Performance

Refers to the ability to quantify or evaluate the effectiveness and efficiency of actions or outcomes in an objective manner.

Organizational Politics

The use of power, influence, and negotiation within an organization to achieve personal or group objectives.