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Blackstone Alternative Asset Management Case Study Solution
Blackstone Alternative Asset Management Case Study Help
Blackstone Alternative Asset Management Case Study Analysis
The following area focuses on the of marketing for Blackstone Alternative Asset Management where the business's customers, competitors and core proficiencies have actually examined in order to justify whether the choice to introduce Case Study Help under Blackstone Alternative Asset Management brand would be a feasible choice or not. We have actually firstly looked at the kind of customers that Blackstone Alternative Asset Management deals in while an assessment of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Blackstone Alternative Asset Management name.
Blackstone Alternative Asset Management customers can be segmented into two groups, industrial clients and last consumers. Both the groups use Blackstone Alternative Asset Management high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these consumer groups. There are 2 kinds of products that are being sold to these potential markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower capacity for Blackstone Alternative Asset Management compared to that of instant adhesives.
The total market for instantaneous adhesives is approximately 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 Blackstone Alternative Asset Management possible market or consumer groups, we can see that the company sells to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair and overhauling business (MRO) and manufacturers handling items made from leather, wood, plastic and metal. This variety in customers recommends that Blackstone Alternative Asset Management can target has numerous alternatives in regards to segmenting the marketplace for its new item specifically as each of these groups would be requiring the same kind of product with particular modifications in need, packaging or quantity. The customer is not cost delicate or brand conscious so launching a low priced dispenser under Blackstone Alternative Asset Management name is not an advised option.
Blackstone Alternative Asset Management is not just a maker of adhesives however takes pleasure in market leadership in the instant adhesive market. The business has its own proficient and certified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.
Core proficiencies are not limited to adhesive manufacturing only as Blackstone Alternative Asset Management likewise specializes in making adhesive giving equipment to assist in making use of its products. This dual production technique offers Blackstone Alternative Asset Management an edge over rivals because none of the rivals of giving devices makes instant adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes suppliers for reaching out to clients. While we are taking a look at the strengths of Blackstone Alternative Asset Management, it is necessary to highlight the business's weak points as well.
The business's sales staff is competent 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 likewise be noted that the suppliers are revealing hesitation when it pertains to selling devices that needs servicing which increases the obstacles of offering devices under a specific brand name.
The company has actually items intended at the high end of the market if we look at Blackstone Alternative Asset Management item line in adhesive devices especially. The possibility of sales cannibalization exists if Blackstone Alternative Asset Management sells Case Study Help under the same portfolio. Provided the fact that Case Study Help is priced lower than Blackstone Alternative Asset Management high-end line of product, sales cannibalization would definitely be impacting Blackstone Alternative Asset Management sales revenue if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Blackstone Alternative Asset Management 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Blackstone Alternative Asset Management income if Case Study Help is launched under the company's trademark name. The truth that $175000 has been invested in promoting SuperBonder recommends that it is not a good time for introducing 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 take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which gives us 2 additional reasons for not launching a low priced product under the business's brand.
The competitive environment of Blackstone Alternative Asset Management would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low understanding about the product. While companies like Blackstone Alternative Asset Management have actually managed to train suppliers concerning adhesives, the final consumer depends on distributors. Roughly 72% of sales are made straight by makers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be stated that the provider delights in a higher bargaining power compared to the purchaser. The truth remains that the supplier does not have much influence over the buyer at this point especially as the buyer does not show brand recognition or rate sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a significant 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 commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace enables ease of entry. If we look at Blackstone Alternative Asset Management in specific, the company has dual abilities in terms of being a manufacturer of immediate adhesives and adhesive dispensers. Prospective dangers in devices dispensing market are low which shows the possibility of creating brand name awareness in not only immediate adhesives but also in giving adhesives as none of the industry players has managed to place itself in dual abilities.
Hazard of Substitutes: The risk of substitutes in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Blackstone Alternative Asset Management introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has provided numerous reasons for not launching Case Study Help under Blackstone Alternative Asset Management name, we have actually a suggested marketing mix for Case Study Help given listed below if Blackstone Alternative Asset Management 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 reasons. There are presently 89257 establishments in this sector and a high use of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which might be a good enough niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this specific market, the reality that the Diy market can also be targeted if a safe and clean low priced adhesive is being cost use with SuperBonder. The item would be offered without the 'glumetic tip' and 'vari-drop' so that the consumer can decide whether he wishes to opt for either of the two devices or not.
Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A price below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store needs to purchase the item on his own.
Blackstone Alternative Asset Management would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net profitability for Blackstone Alternative Asset Management for releasing Case Study Help.
Place: A circulation model where Blackstone Alternative Asset Management directly sends the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Blackstone Alternative Asset Management. Given that the sales team is currently participated in offering immediate adhesives and they do not have competence in selling dispensers, involving them in the selling process would be pricey specifically as each sales call expenses around $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a favorable option.
Promotion: Although a low promotional budget plan must have been designated to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested marketing plan costing $51816 is advised for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in lorry upkeep stores. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
