Competition Positioning, Profit Frontier & Enterprise Ranking Analysis
Of
Industrial Capital Goods Industrial Machinery
Slide Set #1
Bill Dunkerley
Project Analysis Objective
Perform an analysis of Competitive Landscape & Profit Frontier (Slide Set #1) and Enterprise Ranking ( Slide Set #2) for the Industrial Capital Goods Machinery Enterprises with summary/wrap up after each slide set.
Provide supporting SCDATA/GCPS system data with notes on each category slide
Provide a wrap up final slide composite summary analysis findings for both Slide Sets.
Analysis Criteria:
Level : 4
Industry: Industrial Capital Goods Industrial Machinery
Region: USA
Summary of Competitive Position and Profit Frontier for Capital Goods Industrial Machinery:
Competivtive Positioning:
Profit Frontier: ITW is outside the Profit Frontier while CMI who is larger by virtue of total revenue/size has a much lower operating margin.
ROA:
Enterprise Ranking Analysis
Industrial Capital Goods Industrial Machinery
Slide Set #2
Bill Dunkerley
Analysis Criteria
Level : 4
Industry: Industrial Capital Goods Industrial Machinery
Region: USA
Summary - Enterprise Ranking Industrial Capital Goods Machinery
Size: Cummins is largest
Profitability: ITW
ROA: ITW
As found in the Competitive Positioning and Profit Frontier Analysis Cummins while the largest in size and total revenue is not performing as well as the smaller more profitable companies . Cummins being a global Enterprise has 9000 global service centers all of which are staffed with technicians and associated support equipment which is costly. ITW on the otherhand is much smaller than Cummins BUT much more profitable with lower liabilities...Bigger does not necessarily always mean more productive.
Analysis Final Summary
As found in the Competitive Positioning and Profit Frontier Analysis Cummins while the largest in size and total revenue is not performing as well as the smaller more profitable companies . Cummins being a global Enterprise has 9000 global service centers all of which are staffed with technicians and associated support equipment which is costly. ITW on the otherhand is much smaller with less infrastructure and costs than Cummins BUT much more profitable with lower liabilities...Bigger does not necessarily always mean more productive! There are ways to improve this situation given the digital age as was evidenced by the performance of some companies during the 2020 COVID pandemic...time will tell.