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Advanced Material Technology Corp Ltd Case Study Help Checklist

Advanced Material Technology Corp Ltd Case Study Help Checklist

Advanced Material Technology Corp Ltd Case Study Solution
Advanced Material Technology Corp Ltd Case Study Help
Advanced Material Technology Corp Ltd Case Study Analysis



Analyses for Evaluating Advanced Material Technology Corp Ltd decision to launch Case Study Solution


The following section focuses on the of marketing for Advanced Material Technology Corp Ltd where the business's consumers, competitors and core proficiencies have actually assessed in order to justify whether the choice to release Case Study Help under Advanced Material Technology Corp Ltd trademark name would be a possible alternative or not. We have actually firstly looked at the kind of clients that Advanced Material Technology Corp Ltd handle while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not launching Case Study Help under Advanced Material Technology Corp Ltd name.
Advanced Material Technology Corp Ltd Case Study Solution

Customer Analysis

Both the groups utilize Advanced Material Technology Corp Ltd high performance adhesives while the business is not only included in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis since the market for the latter has a lower potential for Advanced Material Technology Corp Ltd compared to that of instant adhesives.

The overall market for instant adhesives is roughly 890,000 in the United States in 1978 which covers both client groups which have been identified earlier.If we take a look at a breakdown of Advanced Material Technology Corp Ltd prospective market or consumer groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and makers dealing in products made of leather, wood, plastic and metal. This variety in clients suggests that Advanced Material Technology Corp Ltd 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 type of product with respective changes in packaging, need or amount. However, the consumer is not rate sensitive or brand conscious so introducing a low priced dispenser under Advanced Material Technology Corp Ltd name is not a recommended alternative.

Company Analysis

Advanced Material Technology Corp Ltd is not simply a manufacturer of adhesives but enjoys market management in the instantaneous adhesive industry. The business has its own competent and competent sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.

Core proficiencies are not restricted to adhesive manufacturing just as Advanced Material Technology Corp Ltd likewise specializes in making adhesive dispensing devices to assist in making use of its products. This dual production strategy offers Advanced Material Technology Corp Ltd an edge over competitors given that none of the rivals of giving devices makes instantaneous adhesives. Additionally, none of these rivals offers directly to the consumer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Advanced Material Technology Corp Ltd, it is essential to highlight the company's weak points.

The company's sales personnel is proficient in training suppliers, the truth stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. However, it must also be noted that the distributors are revealing reluctance when it concerns offering equipment that needs maintenance which increases the challenges of offering devices under a specific brand name.

The business has actually items aimed at the high end of the market if we look at Advanced Material Technology Corp Ltd product line in adhesive devices especially. The possibility of sales cannibalization exists if Advanced Material Technology Corp Ltd offers Case Study Help under the very same portfolio. Given the reality that Case Study Help is priced lower than Advanced Material Technology Corp Ltd high-end product line, sales cannibalization would absolutely be impacting Advanced Material Technology Corp Ltd sales income if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization impacting Advanced Material Technology Corp Ltd 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Advanced Material Technology Corp Ltd revenue if Case Study Help is released under the company's trademark name. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

Additionally, if we take a look at the marketplace in general, the adhesives market does disappoint brand orientation or rate consciousness which gives us two extra reasons for not introducing a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Advanced Material Technology Corp Ltd 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 growth potential due to the presence of fragmented sectors with Advanced Material Technology Corp Ltd taking pleasure in leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market competition in between these players could be called 'extreme' as the customer is not brand name mindful and each of these gamers has prominence in regards to market share, the fact still stays that the industry is not saturated and still has a number of market sectors which can be targeted as prospective niche markets even when releasing an adhesive. Nevertheless, we can even point out the reality that sales cannibalization might be leading to market competition in the adhesive dispenser market while the marketplace for instantaneous adhesives offers growth potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low knowledge about the item. While business like Advanced Material Technology Corp Ltd have managed to train suppliers concerning adhesives, the last consumer is dependent on suppliers. Approximately 72% of sales are made directly by makers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the reality that the adhesive market is controlled by three players, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. However, the reality remains that the supplier does not have much impact over the buyer at this moment especially as the purchaser does disappoint brand name acknowledgment or cost level of sensitivity. When it comes to the adhesive market while the buyer and the producer do not have a major control over the real sales, this shows that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market shows that the marketplace permits ease of entry. However, if we look at Advanced Material Technology Corp Ltd in particular, the company has double capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential threats in devices giving market are low which reveals the possibility of producing brand awareness in not only instant adhesives however also in dispensing adhesives as none of the industry players has managed to place itself in double abilities.

Risk of Substitutes: The risk of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic tip applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Advanced Material Technology Corp Ltd presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for structure).


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

Advanced Material Technology Corp Ltd Case Study Help


Despite the fact that our 3C analysis has actually given numerous factors for not launching Case Study Help under Advanced Material Technology Corp Ltd name, we have actually a recommended marketing mix for Case Study Help offered below if Advanced Material Technology Corp Ltd chooses to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of reasons. There are currently 89257 establishments in this sector and a high use of around 58900 pounds. is being utilized by 36.1 % of the marketplace. This market has an extra growth capacity of 10.1% which might be a sufficient specific niche market sector for Case Study Help. Not just would a portable dispenser deal benefit to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic pointer' and 'vari-drop' so that the customer can choose whether he wishes to select either of the two accessories or not.

Price: The recommended price of Case Study Help has 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 expense of the 'vari idea' or the 'glumetic suggestion'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to purchase the product on his own. This would increase the possibility of affecting mechanics to acquire the item for use in their day-to-day upkeep tasks.

Advanced Material Technology Corp Ltd would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Advanced Material Technology Corp Ltd for launching Case Study Help.

Place: A circulation design where Advanced Material Technology Corp Ltd straight sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Advanced Material Technology Corp Ltd. Because the sales team is currently taken part in selling instant adhesives and they do not have competence in selling dispensers, including them in the selling process would be costly especially as each sales call expenses approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: A low promotional spending plan ought to have been appointed to Case Study Help however the truth that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the recommended marketing plan costing $51816 is advised for initially introducing the item in the market. The prepared ads in publications would be targeted at mechanics in vehicle upkeep shops. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Advanced Material Technology Corp Ltd Case Study Analysis

Although a recommended strategy in the form of a marketing mix has actually been gone over for Case Study Help, the truth still remains that the item would not match Advanced Material Technology Corp Ltd line of product. We have a look at appendix 2, we can see how the overall gross success for the two models is anticipated to be roughly $49377 if 250 systems of each model are produced annually as per the plan. However, the preliminary planned marketing is around $52000 each year which would be putting a stress on the business's resources leaving Advanced Material Technology Corp Ltd with an unfavorable net income if the costs are designated to Case Study Help only.

The truth that Advanced Material Technology Corp Ltd has actually already sustained a preliminary investment of $48000 in the form of capital cost and prototype development indicates that the profits from Case Study Help is not enough to carry out the risk of sales cannibalization. Other than that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a preferable choice especially of it is impacting the sale of the business's earnings creating models.



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