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Cambridge Technology Partners Corporate Venturing August 1996 Case Study Solution
Cambridge Technology Partners Corporate Venturing August 1996 Case Study Help
Cambridge Technology Partners Corporate Venturing August 1996 Case Study Analysis
The following area concentrates on the of marketing for Cambridge Technology Partners Corporate Venturing August 1996 where the company's customers, competitors and core proficiencies have actually evaluated in order to validate whether the decision to introduce Case Study Help under Cambridge Technology Partners Corporate Venturing August 1996 trademark name would be a feasible alternative or not. We have actually firstly looked at the kind of consumers that Cambridge Technology Partners Corporate Venturing August 1996 handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not releasing Case Study Help under Cambridge Technology Partners Corporate Venturing August 1996 name.
Cambridge Technology Partners Corporate Venturing August 1996 consumers can be segmented into two groups, last consumers and industrial clients. Both the groups utilize Cambridge Technology Partners Corporate Venturing August 1996 high performance adhesives while the business is not only associated with the production of these adhesives but also markets them to these client groups. There are 2 kinds of items that are being sold to these possible markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower capacity for Cambridge Technology Partners Corporate Venturing August 1996 compared to that of instantaneous adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have actually been recognized earlier.If we take a look at a breakdown of Cambridge Technology Partners Corporate Venturing August 1996 possible market or client groups, we can see that the business sells to OEMs (Initial Devices Manufacturers), Do-it-Yourself customers, repair and overhauling companies (MRO) and producers handling products made of leather, metal, plastic and wood. This variety in clients suggests that Cambridge Technology Partners Corporate Venturing August 1996 can target has different alternatives in regards to segmenting the market for its new product especially as each of these groups would be requiring the same type of product with respective modifications in packaging, demand or quantity. The client is not cost delicate or brand conscious so introducing a low priced dispenser under Cambridge Technology Partners Corporate Venturing August 1996 name is not an advised alternative.
Cambridge Technology Partners Corporate Venturing August 1996 is not just a producer of adhesives however delights in market leadership in the immediate adhesive industry. The company has its own experienced and certified sales force which includes value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Cambridge Technology Partners Corporate Venturing August 1996 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 checked out for broadening reach by means of distributors. The company's reach is not restricted to The United States and Canada just as it also delights in global sales. With 1400 outlets spread all throughout The United States and Canada, Cambridge Technology Partners Corporate Venturing August 1996 has its internal production plants rather than utilizing out-sourcing as the favored strategy.
Core competences are not restricted to adhesive manufacturing just as Cambridge Technology Partners Corporate Venturing August 1996 likewise concentrates on making adhesive giving devices to facilitate using its products. This dual production technique provides Cambridge Technology Partners Corporate Venturing August 1996 an edge over competitors because none of the competitors of dispensing equipment makes instantaneous adhesives. In addition, none of these competitors sells straight to the consumer either and utilizes distributors for connecting to clients. While we are looking at the strengths of Cambridge Technology Partners Corporate Venturing August 1996, it is crucial to highlight the business's weak points.
The company's sales personnel is competent in training distributors, the reality 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. Nevertheless, it should likewise be kept in mind that the suppliers are showing reluctance when it concerns offering devices that requires servicing which increases the difficulties of selling equipment under a specific brand.
If we look at Cambridge Technology Partners Corporate Venturing August 1996 line of product in adhesive devices especially, the company has products focused on the high-end of the marketplace. The possibility of sales cannibalization exists if Cambridge Technology Partners Corporate Venturing August 1996 sells Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Cambridge Technology Partners Corporate Venturing August 1996 high-end product line, sales cannibalization would absolutely be impacting Cambridge Technology Partners Corporate Venturing August 1996 sales revenue if the adhesive devices is offered under the business's trademark name.
We can see sales cannibalization impacting Cambridge Technology Partners Corporate Venturing August 1996 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Cambridge Technology Partners Corporate Venturing August 1996 profits if Case Study Help is introduced under the company's brand name. The reality that $175000 has been invested in promoting SuperBonder suggests that it is not a great time for releasing 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 take a look at the market in general, the adhesives market does disappoint brand name orientation or cost consciousness which gives us 2 extra reasons for not releasing a low priced product under the business's brand name.
The competitive environment of Cambridge Technology Partners Corporate Venturing August 1996 would be studied through 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 particularly as the purchaser has low knowledge about the product. While business like Cambridge Technology Partners Corporate Venturing August 1996 have handled to train distributors relating to adhesives, the last consumer is dependent on suppliers. Roughly 72% of sales are made straight by producers and distributors for immediate adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the truth that the adhesive market is controlled by three players, it could be said that the supplier delights in a greater bargaining power compared to the buyer. However, the fact stays that the supplier does not have much impact over the purchaser at this moment particularly as the purchaser does disappoint brand acknowledgment or cost level of sensitivity. This shows that the distributor has the greater power when it concerns the adhesive market while the producer and the buyer do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace enables ease of entry. However, if we take a look at Cambridge Technology Partners Corporate Venturing August 1996 in particular, the company has dual capabilities in regards to being a manufacturer of adhesive dispensers and instantaneous adhesives. Prospective threats in equipment giving industry are low which shows the possibility of creating brand name awareness in not only instant adhesives however also in giving adhesives as none of the industry gamers has actually handled to place itself in dual capabilities.
Threat of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic suggestion applicators, in-built applicators, pencil applicators and sophisticated consoles. The truth stays that if Cambridge Technology Partners Corporate Venturing August 1996 presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided various reasons for not launching Case Study Help under Cambridge Technology Partners Corporate Venturing August 1996 name, we have a suggested marketing mix for Case Study Help offered listed below if Cambridge Technology Partners Corporate Venturing August 1996 chooses to proceed with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Automobile services' for a variety of factors. There are presently 89257 facilities in this section and a high usage of around 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra development potential of 10.1% which may be a good enough specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the truth that the Diy market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The item would be sold without the 'glumetic tip' and 'vari-drop' so that the consumer can choose whether he wants to opt for either of the two devices or not.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance store needs to buy the product on his own.
Cambridge Technology Partners Corporate Venturing August 1996 would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Cambridge Technology Partners Corporate Venturing August 1996 for releasing Case Study Help.
Place: A distribution design where Cambridge Technology Partners Corporate Venturing August 1996 directly sends the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Cambridge Technology Partners Corporate Venturing August 1996. Given that the sales group is currently taken part in selling instantaneous adhesives and they do not have know-how in offering dispensers, involving them in the selling process would be pricey particularly as each sales call expenses around $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable alternative.
Promotion: A low marketing budget should have been appointed 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 expenses incurred for production, the recommended advertising plan costing $51816 is suggested for at first presenting the product in the market. The planned ads in publications would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
