2. What benefits does Peerless gain from helping its customers evaluate system repair as a potential alternative to costly replacement of a pump system? What strategies and business tools do you think the company must have in place to fulfill this customer need? Why is it important for Peerless to address it, if it is not as profitable for the firm as selling a new system?

Pumps are the world’s second most commonly used machines. They supply almost a quarter of global demand for electric motor energy. Peerless Pump Co. of Indianapolis has been providing reliable pumps for high-value applications in the industrial, municipal, agriculture, and fire protection segments since 1923. By focusing on safety, quality, schedule, and cost—in that order—the firm has enjoyed steady growth and even increased its revenue expectations for the future.
“Continued enthusiasm and management commitment make our future growth ambitions very attainable,” says Fred Bock, Peerless vice president of marketing and business planning.
A company initiative called “One Peerless” focused the attention of the company’s 430 employees, who work in many different global locations, on improving teamwork, communication, leadership, and continuous improvement (growth). “It is very easy to focus on needs, One Peerless takes a proactive approach to focusing on what our customers—both internal and external—truly want,”
Bock says. “One Peerless is a well-rounded operations, sales, and marketing plan that involves everyone associated with our company, from suppliers to employees to distributors to end users.”
The company, with $120 million in annual sales, was acquired in 2007 from a private equity firm by Danish pump giant Grundfos, which has been expanding rapidly in eastern Europe and Asia, as well as a significant commitment to North America, where they see “significant growth potential.”