Market segmentation: A classic solution for an industrial products company

ECOM, Inc., is our fictitious name for the industrial products division of a real Fortune 500 corporation. Over the past ten years the company, and indeed the whole industry, has witnessed little technological innovation and no significant developments in operations or strategic planning. ECOM operates in a highly competitive environment with no dominant market leader, and it has suffered operating losses for the past three years. While ECOM has recently divested itself of a medium‐sized plant, senior management continues to be concerned about the under‐utilization of the remaining four production facilities. The situation could seriously affect both profitability and employee morale.