Competition
There are five competitors, including one Japanese firm, selling re-bar in the fourstates. Average selling price for re-bar, for example ,is $136 pertonne, delivered to the customer. Cochrane plans to sell at $115 per tonne, thus his landed price would be 15-20 percent less than anyone else coming unto the market. Total sales for 1985 in the market was $189 million of which Cochrane expected a first year capture of 9 percent , growing to 22 percent in five year. This strategy is seen to be one that would discourage other since, if necessary, the company could reduce its price by a total of 40 percent and still survive.