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Computer Associates International Inc Case Study Solution
Computer Associates International Inc Case Study Help
Computer Associates International Inc Case Study Analysis
The following section concentrates on the of marketing for Computer Associates International Inc where the company's clients, competitors and core competencies have evaluated in order to validate whether the choice to introduce Case Study Help under Computer Associates International Inc brand would be a feasible choice or not. We have firstly looked at the kind of clients that Computer Associates International Inc deals in while an evaluation of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Computer Associates International Inc name.
Both the groups utilize Computer Associates International Inc high performance adhesives while the business is not just involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Computer Associates International Inc compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have actually been recognized earlier.If we take a look at a breakdown of Computer Associates International Inc prospective market or consumer groups, we can see that the business offers to OEMs (Initial Equipment Makers), Do-it-Yourself customers, repair work and revamping business (MRO) and producers dealing in items made from leather, metal, wood and plastic. This diversity in consumers suggests that Computer Associates International Inc can target has different alternatives in terms of segmenting the market for its brand-new item particularly as each of these groups would be needing the very same kind of item with respective modifications in demand, packaging or amount. The consumer is not price sensitive or brand mindful so launching a low priced dispenser under Computer Associates International Inc name is not a recommended option.
Computer Associates International Inc is not simply a maker of adhesives but takes pleasure in market management in the immediate adhesive market. The business has its own competent 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 skills are not restricted to adhesive manufacturing just as Computer Associates International Inc also focuses on making adhesive giving equipment to facilitate using its items. This dual production strategy gives Computer Associates International Inc an edge over competitors because none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these competitors sells directly to the consumer either and makes use of suppliers for connecting to consumers. While we are looking at the strengths of Computer Associates International Inc, it is crucial to highlight the company's weaknesses.
The business's sales personnel is competent in training distributors, the fact remains that the sales group is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It needs to likewise be kept in mind that the distributors are showing unwillingness when it comes to selling devices that needs servicing which increases the challenges of offering devices under a specific brand name.
The company has products aimed at the high end of the market if we look at Computer Associates International Inc product line in adhesive equipment particularly. If Computer Associates International Inc sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Computer Associates International Inc high-end product line, sales cannibalization would certainly be affecting Computer Associates International Inc sales earnings if the adhesive equipment is sold under the business's brand.
We can see sales cannibalization affecting Computer Associates International Inc 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 might decrease Computer Associates International Inc income. The fact that $175000 has been spent in promoting SuperBonder recommends 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 immediate adhesive.
Furthermore, if we look at the market in general, the adhesives market does disappoint brand name orientation or rate awareness which offers us two extra reasons for not releasing a low priced product under the business's brand.
The competitive environment of Computer Associates International Inc would be studied by means of Porter's 5 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 buyer has low knowledge about the product. While companies like Computer Associates International Inc have handled to train suppliers regarding adhesives, the last consumer depends 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: Provided the truth that the adhesive market is controlled by 3 players, it could be stated that the supplier delights in a greater bargaining power compared to the buyer. Nevertheless, the reality stays that the supplier does not have much impact over the purchaser at this point particularly as the buyer does not show brand acknowledgment or price level of sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a major control over the real sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the instant adhesive market suggests that the marketplace permits ease of entry. However, if we take a look at Computer Associates International Inc in particular, the company has dual capabilities in terms of being a producer of immediate adhesives and adhesive dispensers. Potential dangers in equipment giving industry are low which reveals the possibility of creating brand name awareness in not just immediate adhesives but likewise in dispensing adhesives as none of the industry gamers has handled to position itself in double abilities.
Risk of Substitutes: The threat of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Computer Associates International Inc introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has given different factors for not releasing Case Study Help under Computer Associates International Inc name, we have actually a recommended marketing mix for Case Study Help provided listed below if Computer Associates International Inc decides to go on with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an additional development capacity of 10.1% which may be an excellent enough specific niche market segment for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.
Price: The suggested rate 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. This rate would not include the cost of the 'vari idea' or the 'glumetic idea'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to acquire the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their daily upkeep jobs.
Computer Associates International Inc would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net profitability for Computer Associates International Inc for releasing Case Study Help.
Place: A circulation model where Computer Associates International Inc directly sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Computer Associates International Inc. Because the sales team is already engaged in offering immediate adhesives and they do not have know-how in offering dispensers, involving them in the selling procedure would be pricey particularly as each sales call expenses approximately $120. The suppliers are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: Although a low promotional budget should have been assigned 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 incurred for production, the recommended advertising plan costing $51816 is advised for at first presenting the product in the market. The planned advertisements in publications would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
