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Corrections Corp Of America Case Study Solution
Corrections Corp Of America Case Study Help
Corrections Corp Of America Case Study Analysis
The following section concentrates on the of marketing for Corrections Corp Of America where the company's consumers, rivals and core proficiencies have examined in order to justify whether the choice to launch Case Study Help under Corrections Corp Of America brand would be a possible alternative or not. We have actually first of all looked at the type of consumers that Corrections Corp Of America handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Corrections Corp Of America name.
Corrections Corp Of America clients can be segmented into two groups, final customers and industrial customers. Both the groups use Corrections Corp Of America high performance adhesives while the business is not just associated with the production of these adhesives but likewise markets them to these customer groups. There are two kinds of products that are being sold to these possible markets; anaerobic adhesives and instantaneous adhesives. We would be focusing on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower capacity for Corrections Corp Of America compared to that of instant adhesives.
The overall market for immediate 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 Corrections Corp Of America potential market or consumer groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers dealing in items made from leather, plastic, wood and metal. This variety in consumers suggests that Corrections Corp Of America can target has different alternatives in terms of segmenting the market for its new item especially as each of these groups would be needing the very same type of item with particular changes in packaging, demand or quantity. However, the consumer is not cost sensitive or brand conscious so releasing a low priced dispenser under Corrections Corp Of America name is not an advised alternative.
Corrections Corp Of America is not simply a producer of adhesives however enjoys market leadership in the instant adhesive industry. The business has its own proficient and qualified sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production just as Corrections Corp Of America likewise concentrates on making adhesive giving devices to facilitate using its items. This dual production strategy gives Corrections Corp Of America an edge over competitors because none of the competitors of dispensing equipment makes instant adhesives. In addition, none of these rivals sells directly to the customer either and uses suppliers for reaching out to consumers. While we are taking a look at the strengths of Corrections Corp Of America, it is important to highlight the business's weak points as well.
The business's sales staff is competent in training suppliers, the reality stays that the sales group is not trained in selling devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. Nevertheless, it must also be kept in mind that the distributors are showing unwillingness when it pertains to offering devices that requires maintenance which increases the challenges of offering equipment under a specific trademark name.
The business has items aimed at the high end of the market if we look at Corrections Corp Of America product line in adhesive devices especially. The possibility of sales cannibalization exists if Corrections Corp Of America offers Case Study Help under the exact same portfolio. Offered the reality that Case Study Help is priced lower than Corrections Corp Of America high-end line of product, sales cannibalization would definitely be affecting Corrections Corp Of America sales revenue if the adhesive equipment is sold under the company's brand name.
We can see sales cannibalization affecting Corrections Corp Of America 27A Pencil Applicator which is priced at $275. There is another possible risk which could decrease Corrections Corp Of America revenue if Case Study Help is launched under the company's trademark name. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for launching 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.
Additionally, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which offers us two additional factors for not releasing a low priced item under the company's brand.
The competitive environment of Corrections Corp Of America 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 industry is low especially as the purchaser has low understanding about the item. While business like Corrections Corp Of America have actually handled to train distributors concerning adhesives, the last customer is dependent on suppliers. Approximately 72% of sales are made directly by manufacturers and distributors for instantaneous adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by 3 players, it could be said that the supplier enjoys a greater bargaining power compared to the purchaser. However, the fact stays that the supplier does not have much influence over the buyer at this moment specifically as the buyer does not show brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the manufacturer and the buyer do not have a major control over the real sales, this shows that the distributor has the greater power.
Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the instant adhesive market suggests that the market enables ease of entry. Nevertheless, if we take a look at Corrections Corp Of America in particular, the company has dual capabilities in regards to being a manufacturer of immediate adhesives and adhesive dispensers. Prospective dangers in devices dispensing industry are low which shows the possibility of developing brand awareness in not only immediate adhesives but also in giving adhesives as none of the industry gamers has handled to position itself in dual capabilities.
Risk of Substitutes: The danger of alternatives in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, in-built applicators, pencil applicators and advanced consoles. The reality stays that if Corrections Corp Of America presented Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually given various factors for not releasing Case Study Help under Corrections Corp Of America name, we have actually a recommended marketing mix for Case Study Help given below if Corrections Corp Of America chooses to go ahead with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of factors. There are currently 89257 facilities in this sector and a high use of approximately 58900 lbs. is being used by 36.1 % of the market. 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 just would a portable dispenser deal benefit to this specific market, the reality 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. 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 accessories or not.
Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or by means of direct selling. This rate would not consist of the expense of the 'vari idea' or the 'glumetic suggestion'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at an automobile upkeep shop needs to buy the item on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their everyday upkeep jobs.
Corrections Corp Of America would just be getting $157 per unit as displayed in appendix 2 which offers a breakdown of gross profitability and net profitability for Corrections Corp Of America for launching Case Study Help.
Place: A circulation design where Corrections Corp Of America directly sends the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be used by Corrections Corp Of America. Considering that the sales team is already engaged in offering immediate adhesives and they do not have know-how in offering dispensers, including them in the selling process would be costly particularly as each sales call costs around $120. The distributors are already selling dispensers so selling Case Study Help through them would be a beneficial alternative.
Promotion: A low promotional budget needs to have been assigned to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing plan costing $51816 is suggested for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in lorry maintenance shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).
