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Cumberland Metal Industries (A): Model Year 1978 Negotiations with Beta Motors
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Provides the background on Cumberland Metal Industries' entry into the automotive components market as a supplier of emission control equipment parts. Cumberland Metal must decide what bid to quote on Beta Motor's 1978 model year business. The company previously had a three-year contract for 100% of Beta's business, but it is now faced with a competitive situation in which a small market share, yet one greater than 50%, is a virtual certainty.