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Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Help Checklist

Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Help Checklist

Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Solution
Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Help
Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Analysis



Analyses for Evaluating Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent decision to launch Case Study Solution


The following section concentrates on the of marketing for Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent where the business's consumers, rivals and core proficiencies have examined in order to justify whether the choice to introduce Case Study Help under Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent brand would be a practical choice or not. We have first of all looked at the kind of consumers that Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent name.
Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Solution

Customer Analysis

Both the groups utilize Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent high performance adhesives while the business is not just included in the production of these adhesives but also markets them to these customer groups. We would be focusing on the consumers of instant adhesives for this analysis considering that the market for the latter has a lower capacity for Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent compared to that of immediate adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have been recognized earlier.If we take a look at a breakdown of Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent potential market or customer groups, we can see that the company offers to OEMs (Initial Devices Manufacturers), Do-it-Yourself consumers, repair and upgrading companies (MRO) and producers dealing in products made from leather, metal, plastic and wood. This variety in consumers suggests that Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent can target has different options in regards to segmenting the marketplace for its new item particularly as each of these groups would be needing the same kind of product with particular modifications in amount, need or packaging. Nevertheless, the consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent name is not a suggested option.

Company Analysis

Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent is not just a manufacturer of adhesives but takes pleasure in market management in the immediate adhesive market. The company has its own proficient and competent sales force which includes value to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent believes in exclusive distribution as suggested by the reality that it has actually chosen to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for expanding reach by means of distributors. The company's reach is not limited to North America only as it likewise delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent has its in-house production plants instead of using out-sourcing as the preferred strategy.

Core competences are not limited to adhesive production just as Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent also specializes in making adhesive dispensing devices to facilitate making use of its items. This dual production strategy offers Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent an edge over rivals given that none of the competitors of dispensing equipment makes immediate adhesives. In addition, none of these competitors offers straight to the customer either and makes use of suppliers for connecting to consumers. While we are taking a look at the strengths of Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent, it is necessary to highlight the company's weaknesses also.

Although the business's sales staff is knowledgeable in training distributors, the fact remains that the sales team is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive equipment. However, it needs to also be kept in mind that the suppliers are revealing reluctance when it pertains to offering devices that needs servicing which increases the difficulties of offering devices under a specific brand.

If we look at Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent line of product in adhesive equipment especially, the business has actually products aimed at the high-end of the marketplace. The possibility of sales cannibalization exists if Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent offers Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent high-end product line, sales cannibalization would certainly be impacting Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent sales earnings if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization impacting Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible danger which could decrease Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent revenue. The fact that $175000 has actually been spent in promoting SuperBonder recommends 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.

In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or price awareness which gives us two additional factors for not launching a low priced item under the business's brand.

Competitor Analysis

The competitive environment of Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent 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 presence of fragmented sections with Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent enjoying management and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market competition in between these gamers could be called 'extreme' as the consumer is not brand conscious and each of these players has prominence in terms of market share, the fact still remains that the industry is not filled and still has a number of market segments which can be targeted as potential niche markets even when launching an adhesive. However, we can even explain the truth that sales cannibalization may be resulting in market competition in the adhesive dispenser market while the marketplace for instantaneous adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the purchaser has low knowledge about the product. While companies like Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent have managed to train distributors regarding adhesives, the final customer depends on suppliers. Roughly 72% of sales are made directly by makers and suppliers for instant adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by 3 gamers, it could be said that the supplier takes pleasure in a higher bargaining power compared to the buyer. The reality stays that the supplier does not have much influence over the buyer at this point particularly as the buyer does not show brand name acknowledgment or price sensitivity. When it comes to the adhesive market while the buyer and the manufacturer do not have a significant control over the real sales, this suggests 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 instantaneous adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we take a look at Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent in particular, the business has double capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Prospective threats in devices dispensing industry are low which reveals the possibility of creating brand name awareness in not just instantaneous adhesives however likewise in giving adhesives as none of the industry players has handled to position itself in double abilities.

Hazard of Substitutes: The hazard of alternatives in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth stays that if Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).


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

Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Help


Despite the fact that our 3C analysis has actually provided different reasons for not releasing Case Study Help under Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent name, we have a suggested marketing mix for Case Study Help offered below if Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent decides to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra growth potential of 10.1% which might be a good sufficient niche market section for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

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

Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross success and net profitability for Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent for launching Case Study Help.

Place: A distribution model where Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent directly sends the product to the local supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent. Given that the sales team is already participated in selling instant adhesives and they do not have competence in selling dispensers, involving them in the selling process would be costly specifically as each sales call expenses approximately $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a beneficial alternative.

Promotion: A low marketing spending 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 sustained for production, the suggested advertising strategy costing $51816 is suggested for initially introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in automobile maintenance 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
Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent Case Study Analysis

A recommended plan of action in the form of a marketing mix has been talked about for Case Study Help, the fact still remains that the item would not complement Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent product line. We take a look at appendix 2, we can see how the total gross success for the two models is anticipated to be around $49377 if 250 systems of each model are made each year as per the plan. However, the initial planned advertising is approximately $52000 per year which would be putting a pressure on the business's resources leaving Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent with an unfavorable net income if the expenditures are assigned to Case Study Help only.

The reality that Benchmark Capital Europe Bringing Silicon Valley Venture Capital To The Continent has actually already sustained an initial financial investment of $48000 in the form of capital cost and prototype development shows that the profits from Case Study Help is inadequate to undertake the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a more effective choice specifically of it is impacting the sale of the company's earnings creating models.



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