Managing The Transition From Maturity To Decline: Diamond Power Corporation
This case study, prepared by Richard C. Scameborn, follows the Diamond
Power Specialty Company from its humble beginnings in 1903 to its decline in
1991.
The birth of Diamond came with the invention of the hand cranked soot
blower. As the years and technology progressed, so did the Diamond soot blower.
Along with this main product, Diamond also added several other products to its
line, but none had the profitability of the soot blower. Diamond had the market
to itself for a number of years, but eventually two competitors sprang up to
challenge Diamond: Copes-Vulcan and Bayer Company. Competition did not become
fierce until World War II, when the soot blower became a major commodity used ...
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technological
advances to stay ahead of it main competitor, Copes-Vulcan. With the passage of
time, production efficiency and technology were not enough. Diamond eventually
had to add foreign sales, customer service, and replacement part production to
its original plan to keep ahead of the game. By the 1970's, the mission to
supply replacement parts and service became one of Diamond's top priorities as
it opened parts and service plants in New Jersey, Georgia, Ohio, Texan, Colorado,
North Dakota, California, and Washington.
Diamond Power's goals over the years seem to stay pretty congruent with
its mission up until the early 1980's. Basically, Diamond's goals included
staying on the moderate levels of technology, building a foreign market by
exporting machines and parts and establishing joint-venture manufacturing
companies overseas, establishing an extensive and profitable domestic
aftermarket support system that included minifactories that supplied both parts
and service, and ...
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term benefits. The plan,
developed by the marketing vice president at the time, involved a nationwide
network of minifactories that offered service and replacement parts that could
be delivered in a matter of hours to industries in need. Diamond's high market
share on soot blowers allowed the company to lower its new equipment prices and
recoup any losses through its replacement part division. This resulted in
increased sales in both new equipment and parts. Diamond's competition, Cope-
Vulcan, did not have any service centers and only limited replacement part
manufacturing, and therefore did not reap profits as high as Diamond Power's.
However, not all of Diamond's business strategies ...
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"Managing The Transition From Maturity To Decline: Diamond Power Corporation." Essayworld.com. August 6, 2006. Accessed December 23, 2024. http://www.essayworld.com/essays/Managing-Transition-Maturity-Decline-Diamond-Power/50313.
"Managing The Transition From Maturity To Decline: Diamond Power Corporation." Essayworld.com. August 6, 2006. Accessed December 23, 2024. http://www.essayworld.com/essays/Managing-Transition-Maturity-Decline-Diamond-Power/50313.
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