![]() Carrier was now working on developing a new product for smaller commercial applications, which would serve the under 300kW range of the market. ![]() The Global Chiller served the high-cooling capacity end of the market, where Carrier had a strong market position. Chillers with higher cooling capacity required more power, measured in kilowatts (kW). The market for chillers was segmented by space-cooling capacity. At the same time, engineers at Montluel turned their attention to the next new product introduction. In the months following the February 1997 launch, several design changes were initiated for Phase II of the Global Chiller, with a view to enhancing quality and reducing cost. After reviewing the situation, he asked that the Global Chiller be launched within three months. The Global Chiller had been in development for over four years, with what one engineer had described as a “creeping” launch date, when Ted Amyuni arrived as president of Carrier France. The Global Chiller was Carrier's first attempt to create a chiller that would be identical for all markets, with the exception of variations in voltage. The Montluel facility, which was owned by Carrier ETO, produced chillers-air conditioning systems for commercial applications-for the European, Middle Eastern, and African markets. In February 1997, Carrier Corporation's manufacturing facility in Montluel, France celebrated the long awaited launch of Carrier's Global Chiller. The case contains rich qualitative and quantitative information on the costs and benefits of the two Aquasnap design concepts in consideration, and focuses on which alternative to introduce. Relative to another more conservative design alternative, a delayed launch was likely. ![]() While one design alternative would lower assembly costs and space requirements, market acceptance was unpredictable. The only way Carrier could compete was by designing a product with low labor costs. In the late 1990s, Carrier France faced extremely high labor and overhead costs relative to smaller Italian competitors in one segment. This case focuses on product design as a source of competitive advantage.
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