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Fortress Investment Group Case Study Solution
Fortress Investment Group Case Study Help
Fortress Investment Group Case Study Analysis
The following area focuses on the of marketing for Fortress Investment Group where the business's customers, rivals and core competencies have examined in order to justify whether the decision to release Case Study Help under Fortress Investment Group trademark name would be a possible option or not. We have actually to start with looked at the kind of consumers that Fortress Investment Group handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Fortress Investment Group name.
Fortress Investment Group consumers can be segmented into two groups, industrial consumers and last customers. Both the groups use Fortress Investment Group high performance adhesives while the company is not just associated with the production of these adhesives but likewise markets them to these consumer groups. There are two kinds of items that are being sold to these potential markets; immediate adhesives and anaerobic adhesives. We would be concentrating on the customers of instant adhesives for this analysis because the market for the latter has a lower capacity for Fortress Investment Group compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been determined earlier.If we take a look at a breakdown of Fortress Investment Group prospective market or consumer groups, we can see that the business offers to OEMs (Initial Devices Makers), Do-it-Yourself clients, repair work and upgrading companies (MRO) and manufacturers handling items made of leather, plastic, wood and metal. This variety in clients recommends that Fortress Investment Group can target has various choices in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the exact same kind of product with respective changes in packaging, amount or demand. The customer is not cost delicate or brand conscious so launching a low priced dispenser under Fortress Investment Group name is not an advised option.
Fortress Investment Group is not just a maker of adhesives but delights in market leadership in the instantaneous adhesive market. The company has its own experienced and certified sales force which includes worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Fortress Investment Group believes in unique distribution as indicated by the fact that it has actually selected to sell through 250 distributors whereas there is t a network of 10000 suppliers that can be checked out for broadening reach via suppliers. The business's reach is not limited to North America just as it likewise delights in worldwide sales. With 1400 outlets spread all throughout North America, Fortress Investment Group has its internal production plants instead of utilizing out-sourcing as the preferred method.
Core competences are not restricted to adhesive manufacturing only as Fortress Investment Group likewise focuses on making adhesive giving equipment to facilitate using its products. This double production method provides Fortress Investment Group an edge over competitors because none of the competitors of giving equipment makes instant adhesives. Furthermore, none of these competitors sells directly to the consumer either and uses suppliers for connecting to consumers. While we are looking at the strengths of Fortress Investment Group, it is important to highlight the company's weaknesses.
Although the business's sales personnel is knowledgeable in training suppliers, the reality stays that the sales group is not trained in selling devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it ought to also be kept in mind that the suppliers are revealing reluctance when it pertains to selling devices that requires servicing which increases the challenges of selling devices under a specific brand name.
The business has actually items intended at the high end of the market if we look at Fortress Investment Group product line in adhesive devices especially. The possibility of sales cannibalization exists if Fortress Investment Group sells Case Study Help under the exact same portfolio. Provided the fact that Case Study Help is priced lower than Fortress Investment Group high-end product line, sales cannibalization would definitely be affecting Fortress Investment Group sales earnings if the adhesive equipment is offered under the company's brand.
We can see sales cannibalization impacting Fortress Investment Group 27A Pencil Applicator which is priced at $275. There is another possible danger which could reduce Fortress Investment Group revenue if Case Study Help is introduced under the company's brand name. The fact that $175000 has actually been invested in promoting SuperBonder recommends that it is not a good 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.
In addition, if we take a look at the market in general, the adhesives market does not show brand name orientation or price consciousness which offers us 2 extra factors for not releasing a low priced item under the company's brand name.
The competitive environment of Fortress Investment Group would be studied via 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 buyer has low understanding about the product. While companies like Fortress Investment Group have actually managed to train distributors concerning adhesives, the final consumer depends on suppliers. Roughly 72% of sales are made directly by makers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by three players, it could be said that the provider enjoys a greater bargaining power compared to the purchaser. The reality remains that the provider does not have much impact over the buyer at this point particularly as the buyer does not reveal brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the maker and the buyer do not have a significant control over the actual sales, this suggests that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market shows that the market permits ease of entry. If we look at Fortress Investment Group in specific, the business has double abilities in terms of being a maker of adhesive dispensers and instant adhesives. Potential dangers in equipment dispensing market are low which reveals the possibility of creating brand awareness in not just instantaneous adhesives but likewise in giving adhesives as none of the industry gamers has actually handled to place itself in double capabilities.
Hazard of Substitutes: The risk of replacements in the instant adhesive market is low while the dispenser market in particular has replacements like Glumetic idea applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact remains that if Fortress Investment Group introduced Case Study Help, it would be enjoying sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered various factors for not launching Case Study Help under Fortress Investment Group name, we have a recommended marketing mix for Case Study Help offered listed below if Fortress Investment Group decides to go on with the launch.
Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an extra growth capacity of 10.1% which may be a great adequate niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this specific 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 cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or by means of direct selling. This rate would not include the cost of the 'vari idea' or the 'glumetic pointer'. A cost listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to buy the item on his own. This would increase the possibility of affecting mechanics to buy the product for usage in their everyday maintenance tasks.
Fortress Investment Group would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Fortress Investment Group for releasing Case Study Help.
Place: A distribution design where Fortress Investment Group directly sends the item to the regional distributor and keeps a 10% drop delivery allowance for the distributor would be utilized by Fortress Investment Group. Since the sales group is currently participated in selling instantaneous adhesives and they do not have know-how in selling dispensers, including them in the selling procedure would be costly especially as each sales call costs roughly $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable choice.
Promotion: Although a low promotional budget plan ought to have been assigned to Case Study Help but the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the recommended advertising strategy costing $51816 is advised for at first presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
