Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 19.12.2005
Length: 14 pages
Data source: Field research
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Abstract
This is the first of a two-case series (IMD-3-1624 and IMD-3-1625). John Nielsen, the recently appointed Chief Executive Officer of Bukser og Berging, a leading Norwegian tugboat operator for harbour assistance, is reviewing plans for a revolutionary design for a new tugboat to assist in the steering of large tankers as they navigate narrow harbour approaches. Up to this point, regular harbour tugs have also been used to provide steering assistance. The design is based upon the understanding that steering assistance requires the absorption of different types of pull and thus requires a different tug design. Naval architects are proposing the design, tugboat captains are sceptical, and the market is ambivalent. Should the company invest in this new design when none of its present customers have asked for such a design and might be unwilling to pay for the premium over standard services? This case was designed for use in courses that focus on marketing new technologies and services and corporate entrepreneurship.
Location:
Industry:
Size:
USD30 million revenues
Other setting(s):
1994
About
Abstract
This is the first of a two-case series (IMD-3-1624 and IMD-3-1625). John Nielsen, the recently appointed Chief Executive Officer of Bukser og Berging, a leading Norwegian tugboat operator for harbour assistance, is reviewing plans for a revolutionary design for a new tugboat to assist in the steering of large tankers as they navigate narrow harbour approaches. Up to this point, regular harbour tugs have also been used to provide steering assistance. The design is based upon the understanding that steering assistance requires the absorption of different types of pull and thus requires a different tug design. Naval architects are proposing the design, tugboat captains are sceptical, and the market is ambivalent. Should the company invest in this new design when none of its present customers have asked for such a design and might be unwilling to pay for the premium over standard services? This case was designed for use in courses that focus on marketing new technologies and services and corporate entrepreneurship.
Settings
Location:
Industry:
Size:
USD30 million revenues
Other setting(s):
1994