Worksheet for Computers: Competitive Bidding Assignment: Analyze the case. Summarize your analysis of alternative bidding strategies in the following table. (Identify the key criteria. Evaluate the alternative bidding strategies on each criterion. ) Draw an appropriate conclusion. Criteria I Alternatives I I l. Submit bid at list price I II. Cut Price (16%) | Ill. Do not Bid I High DependabilityReasonable Priceless Emphasis on Plenipotentiaries Accuracy Not Required I Advantages . Maintain high quality image and branding of Computers. 2. Keep standard markup in place – if they do win, it will be refillable.
Disadvantages. Price will be too high for K¶nigh. 2. Low chance that Computers will win the bid. – Missed opportunity, and the European factory may sit idle after opening. 3. Allows other competitors to gain market share and potential future business with K¶nigh. I Advantages . Highest chances of winning the competitive bid. 2. Maintain relationship with K¶nigh. 3. European factory will have immediate work to complete when it opens. Disadvantages. Miss out on potential profit if Computers was to bid higher. 2. Some hit to Compunction’s high quality image and branding.
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I Advantages . Maintain high quality image and branding of Computers. Disadvantages. No chance of winning the competitive bid. 2. Missed opportunity for Computers. 3. European factory may not have enough work when they open. 4. Allows other competitors to gain market share and potential future business with K¶nigh. I Conclusion: After weighing the alternatives available to Computers, I believe the best option is for them to reduce their price by 16%, making their overall bid $1 This price will put them Just under Adage’s price and Just under 20% above Rush’s price.