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Adelphia Communications Corp Case Study Solution
Adelphia Communications Corp Case Study Help
Adelphia Communications Corp Case Study Analysis
The following section focuses on the of marketing for Adelphia Communications Corp where the company's consumers, rivals and core proficiencies have assessed in order to validate whether the decision to introduce Case Study Help under Adelphia Communications Corp brand name would be a feasible option or not. We have actually to start with looked at the kind of clients that Adelphia Communications Corp handle while an evaluation of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Adelphia Communications Corp name.
Adelphia Communications Corp consumers can be segmented into 2 groups, commercial clients and last customers. Both the groups use Adelphia Communications Corp high performance adhesives while the company is not just involved in the production of these adhesives however also markets them to these client groups. There are 2 types of products that are being offered to these possible markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the marketplace for the latter has a lower capacity for Adelphia Communications Corp compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both consumer groups which have been recognized earlier.If we take a look at a breakdown of Adelphia Communications Corp possible market or customer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and producers handling items made of leather, plastic, wood and metal. This variety in customers recommends that Adelphia Communications Corp can target has different choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be requiring the exact same kind of product with particular modifications in product packaging, amount or demand. The client is not rate sensitive or brand mindful so releasing a low priced dispenser under Adelphia Communications Corp name is not an advised alternative.
Adelphia Communications Corp is not simply a manufacturer of adhesives but takes pleasure in market leadership in the instant adhesive industry. The business has its own competent and certified sales force which adds worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Adelphia Communications Corp believes in exclusive circulation as suggested by the reality that it has picked to offer through 250 distributors whereas there is t a network of 10000 distributors that can be explored for broadening reach through suppliers. The business's reach is not restricted to The United States and Canada only as it likewise enjoys international sales. With 1400 outlets spread all across The United States and Canada, Adelphia Communications Corp has its in-house production plants rather than utilizing out-sourcing as the preferred strategy.
Core proficiencies are not restricted to adhesive production just as Adelphia Communications Corp also concentrates on making adhesive dispensing devices to assist in the use of its items. This dual production strategy provides Adelphia Communications Corp an edge over rivals since none of the rivals of giving equipment makes immediate adhesives. Additionally, none of these rivals sells directly to the customer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Adelphia Communications Corp, it is important to highlight the business's weaknesses.
The company's sales personnel is skilled in training distributors, the fact stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. However, it needs to likewise be noted that the suppliers are showing reluctance when it comes to offering equipment that requires maintenance which increases the challenges of offering devices under a specific brand name.
If we take a look at Adelphia Communications Corp product line in adhesive devices particularly, the business has products focused on the luxury of the market. If Adelphia Communications Corp offers Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Adelphia Communications Corp high-end product line, sales cannibalization would certainly be affecting Adelphia Communications Corp sales profits if the adhesive devices is sold under the company's brand name.
We can see sales cannibalization affecting Adelphia Communications Corp 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Adelphia Communications Corp revenue if Case Study Help is introduced under the company's trademark name. The fact that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the fact 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 not show brand name orientation or cost awareness which gives us two additional reasons for not introducing a low priced item under the business's trademark name.
The competitive environment of Adelphia Communications Corp would be studied by means of Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low knowledge about the product. While business like Adelphia Communications Corp have actually handled to train distributors regarding adhesives, the last customer is dependent on suppliers. Roughly 72% of sales are made straight by producers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be stated that the provider enjoys a greater bargaining power compared to the buyer. The fact remains that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does not show brand name recognition or rate level of sensitivity. When it comes to the adhesive market while the maker and the purchaser do not have a major control over the actual sales, this shows that the supplier has the higher power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market suggests that the market permits ease of entry. If we look at Adelphia Communications Corp in specific, the business has dual capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Potential risks in equipment giving market are low which shows the possibility of creating brand name awareness in not only immediate adhesives however likewise in dispensing adhesives as none of the market players has handled to position itself in double capabilities.
Danger of Substitutes: The threat of alternatives in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The fact stays that if Adelphia Communications Corp presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has given different factors for not introducing Case Study Help under Adelphia Communications Corp name, we have actually a recommended marketing mix for Case Study Help given listed below if Adelphia Communications Corp decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are currently 89257 establishments in this sector and a high use of approximately 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which might be a sufficient specific niche market segment for Case Study Help. Not only would a portable dispenser deal convenience to this specific market, the fact that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder. The product would be sold without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wants to go with either of the two accessories or not.
Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic tip'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance shop requires to acquire the product on his own. This would increase the possibility of affecting mechanics to acquire the item for use in their everyday upkeep jobs.
Adelphia Communications Corp would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for Adelphia Communications Corp for launching Case Study Help.
Place: A distribution model where Adelphia Communications Corp straight sends the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be used by Adelphia Communications Corp. Given that the sales team is currently participated in selling immediate adhesives and they do not have knowledge in offering dispensers, involving them in the selling procedure would be costly particularly as each sales call expenses roughly $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial choice.
Promotion: Although a low advertising budget needs to have been assigned to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is suggested for initially presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
