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1366 Technologies Scaling The Venture Case Study Help Checklist

1366 Technologies Scaling The Venture Case Study Help Checklist

1366 Technologies Scaling The Venture Case Study Solution
1366 Technologies Scaling The Venture Case Study Help
1366 Technologies Scaling The Venture Case Study Analysis



Analyses for Evaluating 1366 Technologies Scaling The Venture decision to launch Case Study Solution


The following area concentrates on the of marketing for 1366 Technologies Scaling The Venture where the business's clients, rivals and core competencies have assessed in order to justify whether the choice to introduce Case Study Help under 1366 Technologies Scaling The Venture trademark name would be a possible alternative or not. We have firstly taken a look at the type of clients that 1366 Technologies Scaling The Venture handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under 1366 Technologies Scaling The Venture name.
1366 Technologies Scaling The Venture Case Study Solution

Customer Analysis

1366 Technologies Scaling The Venture clients can be segmented into two groups, last customers and industrial clients. Both the groups utilize 1366 Technologies Scaling The Venture high performance adhesives while the business is not just associated with the production of these adhesives but also markets them to these customer groups. There are 2 types of products that are being offered to these possible markets; anaerobic adhesives and immediate adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis because the marketplace for the latter has a lower potential for 1366 Technologies Scaling The Venture compared to that of instant adhesives.

The overall market for instant adhesives is around 890,000 in the US in 1978 which covers both client groups which have actually been identified earlier.If we look at a breakdown of 1366 Technologies Scaling The Venture prospective market or customer groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself consumers, repair and revamping companies (MRO) and producers handling products made from leather, plastic, metal and wood. This variety in consumers recommends that 1366 Technologies Scaling The Venture can target has different choices in terms of segmenting the marketplace for its new item especially as each of these groups would be requiring the same kind of item with respective modifications in demand, amount or product packaging. Nevertheless, the customer is not cost sensitive or brand name conscious so releasing a low priced dispenser under 1366 Technologies Scaling The Venture name is not an advised choice.

Company Analysis

1366 Technologies Scaling The Venture is not simply a manufacturer of adhesives but delights in market leadership in the instantaneous adhesive industry. The business has its own proficient and competent sales force which adds worth to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.

Core skills are not limited to adhesive manufacturing only as 1366 Technologies Scaling The Venture also focuses on making adhesive giving equipment to assist in the use of its products. This dual production method offers 1366 Technologies Scaling The Venture an edge over rivals given that none of the rivals of giving devices makes immediate adhesives. Furthermore, none of these rivals offers directly to the consumer either and uses suppliers for connecting to clients. While we are looking at the strengths of 1366 Technologies Scaling The Venture, it is important to highlight the company's weaknesses.

Although the business's sales personnel is experienced in training distributors, the fact remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. It ought to also be noted that the suppliers are revealing reluctance when it comes to selling equipment that needs servicing which increases the challenges of offering devices under a particular brand name.

If we look at 1366 Technologies Scaling The Venture line of product in adhesive equipment particularly, the business has products targeted at the high end of the marketplace. The possibility of sales cannibalization exists if 1366 Technologies Scaling The Venture sells Case Study Help under the very same portfolio. Provided the reality that Case Study Help is priced lower than 1366 Technologies Scaling The Venture high-end product line, sales cannibalization would definitely be affecting 1366 Technologies Scaling The Venture sales earnings if the adhesive devices is offered under the company's brand.

We can see sales cannibalization affecting 1366 Technologies Scaling The Venture 27A Pencil Applicator which is priced at $275. There is another possible risk which could reduce 1366 Technologies Scaling The Venture profits if Case Study Help is launched under the business's trademark name. The reality that $175000 has actually been invested in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

Furthermore, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or cost awareness which provides us two extra factors for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of 1366 Technologies Scaling The Venture would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the existence of fragmented sectors with 1366 Technologies Scaling The Venture taking pleasure in leadership and a combined market share of 75% with two other industry players, Eastman and Permabond. While market competition between these players could be called 'extreme' as the customer is not brand name mindful and each of these players has prominence in regards to market share, the truth still stays that the market is not filled and still has numerous market sectors which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the reality that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for immediate adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low specifically as the buyer has low knowledge about the product. While business like 1366 Technologies Scaling The Venture have actually handled to train distributors relating to adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made straight by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by three players, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. The truth remains that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the producer and the purchaser do not have a major control over the real sales, this indicates that the supplier has the greater power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the instant adhesive market shows that the marketplace enables ease of entry. Nevertheless, if we look at 1366 Technologies Scaling The Venture in particular, the company has double capabilities in regards to being a maker of adhesive dispensers and instant adhesives. Possible dangers in devices dispensing market are low which shows the possibility of developing brand name awareness in not only instantaneous adhesives however also in giving adhesives as none of the industry players has actually handled to position itself in dual capabilities.

Risk of Substitutes: The hazard of alternatives in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if 1366 Technologies Scaling The Venture introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for framework).


4 P Analysis: A suggested Marketing Mix for Case Study Help

1366 Technologies Scaling The Venture Case Study Help


Despite the fact that our 3C analysis has actually given different factors for not introducing Case Study Help under 1366 Technologies Scaling The Venture name, we have a suggested marketing mix for Case Study Help offered below if 1366 Technologies Scaling The Venture decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional development capacity of 10.1% which may be a good sufficient niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the truth that the Diy market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or via direct selling. This price would not consist of the expense of the 'vari idea' or the 'glumetic idea'. A cost below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop needs to acquire the product on his own. This would increase the possibility of affecting mechanics to acquire the product for use in their everyday maintenance jobs.

1366 Technologies Scaling The Venture would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for 1366 Technologies Scaling The Venture for launching Case Study Help.

Place: A distribution model where 1366 Technologies Scaling The Venture directly sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by 1366 Technologies Scaling The Venture. Considering that the sales team is currently participated in offering immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be expensive particularly as each sales call expenses roughly $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing budget plan needs to have been designated to Case Study Help however the truth that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing plan costing $51816 is recommended for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in automobile upkeep stores. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
1366 Technologies Scaling The Venture Case Study Analysis

A suggested plan of action in the form of a marketing mix has actually been talked about for Case Study Help, the fact still stays that the product would not complement 1366 Technologies Scaling The Venture product line. We take a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be around $49377 if 250 systems of each design are made each year according to the strategy. Nevertheless, the preliminary planned advertising is approximately $52000 each year which would be putting a strain on the business's resources leaving 1366 Technologies Scaling The Venture with a negative earnings if the expenditures are assigned to Case Study Help only.

The reality that 1366 Technologies Scaling The Venture has actually currently sustained a preliminary investment of $48000 in the form of capital expense and model development suggests that the earnings from Case Study Help is not enough to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable option specifically of it is impacting the sale of the business's profits producing designs.



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