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Cost Structure Analysis Of Compressor Manufacturing Companies

Requirement

The client wanted to understand the compressor business of two leading companies with following aspects:
Difference in between cost components between manufacture of one company’s compressors vis-à-vis compressors of other companies
Percentage share of cost components in overall manufacturing costs of these compressors
Ratio of fixed and variable cost
Overhead costs (Internal Vs Contracted)
Cost saving methods adopted by target companies to reduce upfront cost to customer

Solution

Research findings were delivered to the client as a custom report covering:
Detailed analysis of the target companies was provided including product definitions, manufacturing locations, cost structure break up for integrally geared compressors, cost saving initiatives, and conclusions and recommendations.
Case Study

Methodology

We conducted research through:
Primary research:
3+ Interviews with executives in sales, R&D and production functions at the target companies
Secondary research:
We referred to resources such as industry associations, news sources and blogs, company filings, annual reports, and other publicly available information
TBRC investigated the target research areas provided by the client at a company/product level. Reasonable estimates were made to provide information at the specific compressor level wherever it was unavailable.

Client Benefits and Feedback

The client was very impressed with the findings of our study.
The client was able to analyze the target companies and devise its future business strategy.
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