Outotec (A): Project Capture Harvard Case Solution & Analysis

Outotec was a market leader in supplying mining alternatives to big mining companies. The organization's specialty and proprietary technology created value for its customers and helped the company differentiate from its competitors. Outotec was not valuing or marketing its options in a sense that took benefit of its own distinct aptitude and value-addition.

Outotec used a cost-based (inside/out) pricing policy, which was the business average. Because of this, operating profit was only 8% of revenues and the CEO had promised the investment community advancements above 10%. The business and especially the just hired VP of Market Operations want to move from a cost-based (inside/out) to a value-based (outside/in) pricing and selling version to capture more lucrative sales and meet profitability targets the CEO declared to investors. However there are numerous disputes to this, which the case study highlights for pupils to discuss and debate.

PUBLICATION DATE: October 11, 2013 PRODUCT #: 514064-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING

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