“Bertrand Caron sat in his office and contemplated his most recent communications with George Milne and Philip Brown of Vancouver Aluminum Company of Vancouver, Washington, USA. Caron was the marketing director of the Canadian Railway Car Corporation (CRCC) headquartered in Montreal. CRCC was a privately-held firm that manufactured various types of railway cars. However, Caron’s firm was now threatened by increasing competition from U.S. manufacturers now able to take advantage of lower tariffs on railway cars because of the North American Free Trade Agreement (NAFTA). Within five years these tariffs would be completely eliminated and the U.S. cars would be even more price competitive. Caron felt that increasing CRCC’s production volume by penetrating the U.S. railway car market with potential customers such as Vancouver Aluminum was essential to the company’s survival…”
Author: William R. Smith, Ph.D.
Source: Graziadio Business Report
Subject: Strategy
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