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Computer Associates International Inc Governance And Investor Communication Challenge Case Study Solution
Computer Associates International Inc Governance And Investor Communication Challenge Case Study Help
Computer Associates International Inc Governance And Investor Communication Challenge Case Study Analysis
The following area focuses on the of marketing for Computer Associates International Inc Governance And Investor Communication Challenge where the company's consumers, rivals and core competencies have evaluated in order to validate whether the decision to introduce Case Study Help under Computer Associates International Inc Governance And Investor Communication Challenge brand would be a practical option or not. We have actually to start with looked at the type of clients that Computer Associates International Inc Governance And Investor Communication Challenge handle while an assessment of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Computer Associates International Inc Governance And Investor Communication Challenge name.
Computer Associates International Inc Governance And Investor Communication Challenge customers can be segmented into two groups, last customers and industrial consumers. Both the groups use Computer Associates International Inc Governance And Investor Communication Challenge high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these customer groups. There are two kinds of products that are being sold to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Computer Associates International Inc Governance And Investor Communication Challenge compared to that of instant adhesives.
The total market for instantaneous adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been determined earlier.If we take a look at a breakdown of Computer Associates International Inc Governance And Investor Communication Challenge possible market or consumer groups, we can see that the company sells to OEMs (Initial Equipment Makers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and manufacturers dealing in products made of leather, wood, plastic and metal. This diversity in customers recommends that Computer Associates International Inc Governance And Investor Communication Challenge can target has numerous options in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be needing the very same type of item with respective modifications in quantity, need or packaging. The customer is not price sensitive or brand mindful so launching a low priced dispenser under Computer Associates International Inc Governance And Investor Communication Challenge name is not a suggested choice.
Computer Associates International Inc Governance And Investor Communication Challenge is not simply a manufacturer of adhesives however takes pleasure in market leadership in the instantaneous adhesive industry. The business has its own experienced and competent sales force which includes value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.
Core competences are not limited to adhesive production just as Computer Associates International Inc Governance And Investor Communication Challenge likewise concentrates on making adhesive dispensing equipment to help with using its items. This dual production strategy gives Computer Associates International Inc Governance And Investor Communication Challenge an edge over competitors given that none of the rivals of giving equipment makes instantaneous adhesives. In addition, none of these rivals offers straight to the customer either and makes use of distributors for reaching out to clients. While we are taking a look at the strengths of Computer Associates International Inc Governance And Investor Communication Challenge, it is important to highlight the company's weak points also.
The company's sales staff is knowledgeable in training suppliers, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. Nevertheless, it must likewise be kept in mind that the distributors are revealing hesitation when it concerns offering equipment that requires servicing which increases the obstacles of offering devices under a specific brand name.
If we take a look at Computer Associates International Inc Governance And Investor Communication Challenge product line in adhesive equipment particularly, the business has actually products targeted at the high-end of the market. The possibility of sales cannibalization exists if Computer Associates International Inc Governance And Investor Communication Challenge offers Case Study Help under the very same portfolio. Provided the reality that Case Study Help is priced lower than Computer Associates International Inc Governance And Investor Communication Challenge high-end product line, sales cannibalization would definitely be impacting Computer Associates International Inc Governance And Investor Communication Challenge sales profits if the adhesive devices is offered under the company's brand name.
We can see sales cannibalization impacting Computer Associates International Inc Governance And Investor Communication Challenge 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible hazard which could decrease Computer Associates International Inc Governance And Investor Communication Challenge income. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for releasing 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 look at the market in general, the adhesives market does disappoint brand orientation or rate awareness which gives us two extra factors for not launching a low priced item under the company's brand name.
The competitive environment of Computer Associates International Inc Governance And Investor Communication Challenge would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low understanding about the product. While business like Computer Associates International Inc Governance And Investor Communication Challenge have handled to train suppliers relating to adhesives, the final customer is dependent on suppliers. Roughly 72% of sales are made straight by makers and distributors for immediate adhesives so the buyer 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 enjoys a higher bargaining power compared to the buyer. Nevertheless, the truth remains that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does disappoint brand name acknowledgment or price level of sensitivity. This indicates that the distributor has the greater power when it comes to the adhesive market while the buyer and the maker do not have a significant control over the actual sales.
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 enables ease of entry. If we look at Computer Associates International Inc Governance And Investor Communication Challenge in particular, the business has dual capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Prospective dangers in equipment dispensing market are low which shows the possibility of creating brand name awareness in not only immediate adhesives however likewise in giving adhesives as none of the industry players has managed to place itself in double capabilities.
Threat of Substitutes: The threat of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The fact remains that if Computer Associates International Inc Governance And Investor Communication Challenge introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered different reasons for not releasing Case Study Help under Computer Associates International Inc Governance And Investor Communication Challenge name, we have actually a recommended marketing mix for Case Study Help provided below if Computer Associates International Inc Governance And Investor Communication Challenge decides to proceed with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an additional growth capacity of 10.1% which may be an excellent enough specific niche market segment for Case Study Help. Not just would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold for use with SuperBonder.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep shop needs to buy the item on his own.
Computer Associates International Inc Governance And Investor Communication Challenge would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Computer Associates International Inc Governance And Investor Communication Challenge for introducing Case Study Help.
Place: A distribution model where Computer Associates International Inc Governance And Investor Communication Challenge straight sends the product to the regional supplier and keeps a 10% drop delivery allowance for the distributor would be used by Computer Associates International Inc Governance And Investor Communication Challenge. Given that the sales team is already engaged in offering instant adhesives and they do not have expertise in selling dispensers, including them in the selling process would be costly specifically as each sales call expenses around $120. The suppliers are already offering dispensers so selling Case Study Help through them would be a favorable option.
Promotion: A low advertising spending plan needs to have been designated to Case Study Help but the reality that the dispenser is an innovation and it needs to be marketed well in order to cover the capital expenses sustained for production, the suggested advertising strategy costing $51816 is advised for initially presenting the item in the market. The prepared ads in publications would be targeted at mechanics in automobile maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
