WhatsApp

California High Speed Rail Case Study Help Checklist

California High Speed Rail Case Study Help Checklist

California High Speed Rail Case Study Solution
California High Speed Rail Case Study Help
California High Speed Rail Case Study Analysis



Analyses for Evaluating California High Speed Rail decision to launch Case Study Solution


The following area concentrates on the of marketing for California High Speed Rail where the business's consumers, rivals and core proficiencies have actually evaluated in order to validate whether the choice to introduce Case Study Help under California High Speed Rail trademark name would be a practical choice or not. We have firstly looked at the type of clients that California High Speed Rail handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under California High Speed Rail name.
California High Speed Rail Case Study Solution

Customer Analysis

Both the groups utilize California High Speed Rail high efficiency adhesives while the business is not just involved in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of instantaneous adhesives for this analysis because the market for the latter has a lower potential for California High Speed Rail compared to that of immediate adhesives.

The overall market for instantaneous adhesives is roughly 890,000 in the United States in 1978 which covers both consumer groups which have been determined earlier.If we look at a breakdown of California High Speed Rail possible market or client groups, we can see that the business sells to OEMs (Initial Equipment Producers), Do-it-Yourself clients, repair and upgrading companies (MRO) and manufacturers dealing in items made of leather, plastic, wood and metal. This variety in clients recommends that California High Speed Rail can target has various alternatives in terms of segmenting the market for its new product specifically as each of these groups would be requiring the exact same type of item with respective changes in product packaging, quantity or need. Nevertheless, the consumer is not rate delicate or brand name mindful so introducing a low priced dispenser under California High Speed Rail name is not an advised choice.

Company Analysis

California High Speed Rail is not just a manufacturer of adhesives however enjoys market leadership in the instant adhesive industry. The company has its own experienced and competent sales force which adds worth to sales by training the company's network of 250 distributors for facilitating the sale of adhesives. California High Speed Rail believes in unique distribution as indicated by the reality that it has picked to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach via suppliers. The business's reach is not restricted to The United States and Canada just as it also enjoys global sales. With 1400 outlets spread all throughout The United States and Canada, California High Speed Rail has its in-house production plants rather than utilizing out-sourcing as the preferred method.

Core competences are not restricted to adhesive manufacturing just as California High Speed Rail also specializes in making adhesive giving equipment to assist in the use of its products. This dual production method offers California High Speed Rail an edge over competitors given that none of the competitors of giving equipment makes instant adhesives. In addition, none of these competitors sells directly to the customer either and makes use of distributors for reaching out to consumers. While we are looking at the strengths of California High Speed Rail, it is important to highlight the business's weak points.

Although the company's sales staff is experienced in training distributors, the reality stays that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. It should also be noted that the distributors are showing reluctance when it comes to selling devices that needs servicing which increases the challenges of selling devices under a specific brand name.

If we take a look at California High Speed Rail product line in adhesive equipment particularly, the business has products focused on the high-end of the marketplace. The possibility of sales cannibalization exists if California High Speed Rail offers Case Study Help under the very same portfolio. Given the truth that Case Study Help is priced lower than California High Speed Rail high-end line of product, sales cannibalization would absolutely be impacting California High Speed Rail sales profits if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization impacting California High Speed Rail 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible risk which could reduce California High Speed Rail profits. The reality that $175000 has actually been invested in promoting SuperBonder suggests that it is not a great time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or price consciousness which gives us 2 extra reasons for not introducing a low priced product under the business's brand name.

Competitor Analysis

The competitive environment of California High Speed Rail would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with California High Speed Rail delighting in leadership and a combined market share of 75% with two other market gamers, Eastman and Permabond. While industry competition in between these players could be called 'extreme' as the consumer is not brand name conscious and each of these players has prominence in regards to market share, the fact still stays that the market is not saturated and still has several market sections which can be targeted as possible specific niche markets even when launching an adhesive. We can even point out the truth that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the market for instantaneous adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low understanding about the item. While business like California High Speed Rail have actually managed to train suppliers regarding adhesives, the last customer is dependent on distributors. Approximately 72% of sales are made directly by producers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a higher bargaining power compared to the buyer. The truth remains that the supplier does not have much impact over the buyer at this point specifically as the buyer does not reveal brand name recognition or price level of sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the actual sales, this shows that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the immediate adhesive market shows that the marketplace enables ease of entry. If we look at California High Speed Rail in particular, the company has double capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential hazards in equipment dispensing industry are low which reveals the possibility of developing brand awareness in not just instantaneous adhesives but also in dispensing adhesives as none of the industry gamers has managed to place itself in double abilities.

Risk of Substitutes: The threat of substitutes in the immediate adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if California High Speed Rail presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).


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

California High Speed Rail Case Study Help


Despite the fact that our 3C analysis has provided numerous factors for not launching Case Study Help under California High Speed Rail name, we have a suggested marketing mix for Case Study Help offered below if California High Speed Rail decides to go ahead with the launch.

Product & Target Market: The target audience selected for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 establishments in this segment and a high use of roughly 58900 lbs. is being used by 36.1 % of the marketplace. This market has an additional development capacity of 10.1% which may be a good enough specific niche market section for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the truth that the Diy market can likewise be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder. The item would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wishes to opt for either of the two devices or not.

Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance shop needs to buy the product on his own.

California High Speed Rail would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for California High Speed Rail for releasing Case Study Help.

Place: A distribution model where California High Speed Rail straight sends the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by California High Speed Rail. Considering that the sales group is already engaged in offering instantaneous adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be costly particularly as each sales call expenses approximately $120. The suppliers are currently offering dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: Although a low marketing budget should have been assigned to Case Study Help but the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended marketing plan costing $51816 is advised for initially presenting the product in the market. The prepared ads in publications would be targeted at mechanics in lorry upkeep stores. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
California High Speed Rail Case Study Analysis

Although a recommended 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 item would not complement California High Speed Rail product line. We have a look at appendix 2, we can see how the total gross profitability for the two models is expected to be approximately $49377 if 250 systems of each model are manufactured each year as per the strategy. However, the preliminary prepared marketing is roughly $52000 each year which would be putting a stress on the company's resources leaving California High Speed Rail with an unfavorable earnings if the costs are assigned to Case Study Help just.

The reality that California High Speed Rail has currently incurred an initial investment of $48000 in the form of capital expense and prototype development suggests that the profits from Case Study Help is insufficient to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a more suitable option particularly of it is affecting the sale of the company's profits generating models.



PREVIOUS PAGE
NEXT PAGE