Rockwell International

Differentiation Aspects and Strategies

B13001 Abhave Sharma B13025 Girish Deshpande B13027 Hrushikesh Kulkarni B13028 Jay Amin B13031 Ketan Lukhi B13041 Pritoj Singh B13056 Sumit Taneja B13058 Syed Hashmi B13059 Vaibhav Chopra B13061 Vishap Rana

Group 6

Differentiation : Product attributes

Attributes/Company
Product features

Rockwell
Premium quality bronze case , more durable and accurate

Badger
Remote register, high quality plastic case

Neptune
New remote reading technology, Conformance to AWWA standards

Hersey
Antiquated design

Kent
Lower quality than US competitors

Product complexity

Accurate piston Disc chamberschamber, its tamper less accurate proof design

Telephone and two way cable for centralised metering

NA

NA

Timing of product Introduction

Introduced its sealed register (SR) meter in 1957

First remote register meter in 1958

In 1965 first system for automated reading and billing

NA

First plastic case meters in 1972

Location

Plant in Uniontown High unionised belonging to United labour rates in Steel workers Union Milwaukee

Nonunionised plant in Tallahassee

Unionised plant in Dedham and nonunionised plant in Spartanburg

Central Plants in Puerto Rico, UK, Africa. High transportation costs

Differentiation : Customer Relationships

Product Customization To match the requirements of large utilities Design (Main case, Measuring Chamber) Chamber Size Inaccuracy over the years Remote reading facility (generator, encoded portable cassette, centralized telephone lines) Specifications

Consumer Marketing To alter the perception of existing and potential customers

Direct marketing, Marketing at Annual AWWA conventions and regional conventions Incentivising customers through hospitality Advertisement in trade journals Promotion through annual sales catalogues and brochures Promotional road shows, maintenance seminars and informational programs on changeouts

Changeout Programs by Rockwell to increase the replacement of existing meters Extended warranty and maintenance plans by Rockwell Rockwell promoted durability and life accuracy of products Badger promoted price, quality and delivery Neptune promoted quality, new technology and conformance to AWWA standards Rockwell marketing programs: Meter leasing and financial analysis package

Product Reputation To come as a clearer alternative in case of competition

Bronze case meters: more durable Plastic case meters: Less durable, better corrosion resistance, less costly Encoded and Centralized meters were more costly

Kents products lower in quality than those of U.S. competitors Rockwell products considered to be of premium-quality, higher-priced

Differentiation : Linkages
Attributes/Company Rockwell Badger Neptune Linkages among functions within a firm Foundry/ injection mold Finishing Sub and final assembly Injection molds only Assembly Semi-automatic Mold/foundry Interchangeable parts R&D Investment in remote Remote equipment designed and manufactured by outside manufacturers Full line of meters Industrial and residential Bronze and Plastic Weaker distribution Channels

Linkages with other firms

20 materials used

No foundry

Product Mix

Full line of Premium Bronze Case meters Industrial and Residential 5 sales offices 150 distributors Largest sales force and Distributor Network Own truck fleet Repair costing less than utilities cost

Both plastic and Bronze Residential Sales majorly plastic Second strongest agent and distributor network Less direct sales reps

Distribution Channels

Service and Support

Improved field service levels

N/A

Organizational Structure
Types of Structures
Rockwell International
Non Family management Careful Money Management Aggressive R&D Acquisitions Separate Division (M&U) for water & gas meters

Entrepreneurial Structure (Small Firms) Functional Structure (Large volume & low cost) Divisional Structure Matrix Structure (Competencies shared between projects and functional areas) Project Based Structure

Badger

New order entry and distribution system

Neptune

Strong direct sales force Five Regional Offices

Kent

Wide distribution system Numerous Joint ventures Localized final assembly

Management Control Systems

Broad Decision making guidelines Managerial freedom within guidelines A Policy of Experimentation (Some examples)

Supply chain sustainability (Hard rubber) Broad direction was to move towards technologically advanced products and remote reading etc. Investment in plant, R&D and people Keeping manufacturing and distribution costs low Bronze, Plastic or Both? Careful financial management to exit certain LOBs if not sustainable and profitable Order-fulfilment (Responsiveness)

Changes to sales and distribution network (eg. In 1977 Badger reduced the number of its Direct Sales Representatives, introduced new order processing methodology) Expansion/business presence outside US and across categories (residential, agricultural, plastic, bronze, etc.) Sharing of human/financial/managerial resources between divisions/Bus of same company Pricing For a given perceived quality, technology + Spending on sales and promotions AWWA Conventions etc.

Rockwell Ran programs to repair meters for utilities at a discount Badger Assembled meters in regional distribution centres @ Less Exhaustive testing Neptune Very lean staff + Some bids were barely sufficient to meet costs Hersey Working to deemphasize piston meters due to higher costs and antiquated design Kent Operated a unique global supply chain with central production plants in Puerto Rico, UK, South America and Australia to manufacture key common parts country-specific parts were manufactured locally

Compensation policies monetary and recognition

Rewards for risk taking
Direct sales force seems of Rockwell to be consistently underbidding distribution channel to gain business ( mostly for larger orders) indicating strong incentives for risk taking in sales Rockwells initiatives (a few of which failed e.g. Downsized meter that contained less bronze) indicates a culture of risk taking being rewarded

Rewards for creativity

Invention and introduction of SR meter was stimulated by and fully endorsed by then CEO Al Rockwell, the division received substantial R&D funds from the parent Rockwell was an R&D focused company Its indigenous SR meters made it a market leader

Multidimensio nal performance measurement

Water meter industry required substantial customer and innovation focus A company needs to measure employee performance on multiple dimensions such as: Product sales (critical to maintain sales volumes to cover fixed costs) Profitability (Important not to underbid highly) customer satisfaction ( of multiple stakeholders in a B2G and B2B environment) Teamwork (Integration in new product research, development, manufacturing and marketing ) Creativity and risk taking (Critical for innovation and final sales)