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Huaneng Power International Inc Raising Capital In Global Markets Case Study Help Checklist

Huaneng Power International Inc Raising Capital In Global Markets Case Study Help Checklist

Huaneng Power International Inc Raising Capital In Global Markets Case Study Solution
Huaneng Power International Inc Raising Capital In Global Markets Case Study Help
Huaneng Power International Inc Raising Capital In Global Markets Case Study Analysis



Analyses for Evaluating Huaneng Power International Inc Raising Capital In Global Markets decision to launch Case Study Solution


The following area focuses on the of marketing for Huaneng Power International Inc Raising Capital In Global Markets where the company's clients, competitors and core competencies have actually assessed in order to justify whether the choice to release Case Study Help under Huaneng Power International Inc Raising Capital In Global Markets trademark name would be a practical option or not. We have firstly looked at the type of customers that Huaneng Power International Inc Raising Capital In Global Markets handle while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Huaneng Power International Inc Raising Capital In Global Markets name.
Huaneng Power International Inc Raising Capital In Global Markets Case Study Solution

Customer Analysis

Both the groups utilize Huaneng Power International Inc Raising Capital In Global Markets high efficiency adhesives while the business is not just included in the production of these adhesives however likewise markets them to these consumer groups. We would be focusing on the consumers of immediate adhesives for this analysis since the market for the latter has a lower capacity for Huaneng Power International Inc Raising Capital In Global Markets compared to that of instant adhesives.

The overall market for immediate adhesives is around 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 Huaneng Power International Inc Raising Capital In Global Markets potential market or client groups, we can see that the company offers to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair and revamping companies (MRO) and makers dealing in items made of leather, metal, wood and plastic. This variety in clients recommends that Huaneng Power International Inc Raising Capital In Global Markets can target has numerous options in terms of segmenting the marketplace for its new product particularly as each of these groups would be needing the same kind of item with particular changes in quantity, demand or product packaging. The customer is not cost delicate or brand conscious so introducing a low priced dispenser under Huaneng Power International Inc Raising Capital In Global Markets name is not a suggested alternative.

Company Analysis

Huaneng Power International Inc Raising Capital In Global Markets is not just a producer of adhesives however takes pleasure in market leadership in the immediate adhesive market. The company has its own experienced and competent sales force which adds value to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.

Core competences are not limited to adhesive manufacturing just as Huaneng Power International Inc Raising Capital In Global Markets likewise specializes in making adhesive dispensing devices to facilitate making use of its items. This double production technique provides Huaneng Power International Inc Raising Capital In Global Markets an edge over competitors since none of the competitors of giving devices makes instantaneous adhesives. Furthermore, none of these rivals offers straight to the customer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Huaneng Power International Inc Raising Capital In Global Markets, it is important to highlight the company's weak points.

The company's sales staff is competent in training suppliers, the fact remains that the sales group is not trained in offering devices so there is a possibility of relying heavily on distributors when promoting adhesive devices. It should likewise be kept in mind that the suppliers are revealing reluctance when it comes to selling devices that needs servicing which increases the challenges of offering devices under a particular brand name.

If we look at Huaneng Power International Inc Raising Capital In Global Markets product line in adhesive devices especially, the business has items focused on the high end of the market. If Huaneng Power International Inc Raising Capital In Global Markets offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Huaneng Power International Inc Raising Capital In Global Markets high-end product line, sales cannibalization would absolutely be impacting Huaneng Power International Inc Raising Capital In Global Markets sales profits if the adhesive devices is sold under the company's trademark name.

We can see sales cannibalization affecting Huaneng Power International Inc Raising Capital In Global Markets 27A Pencil Applicator which is priced at $275. There is another possible risk which might reduce Huaneng Power International Inc Raising Capital In Global Markets profits if Case Study Help is launched under the business's brand. The truth that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good time for launching 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 not show brand orientation or price consciousness which provides us 2 extra reasons for not introducing a low priced product under the business's trademark name.

Competitor Analysis

The competitive environment of Huaneng Power International Inc Raising Capital In Global Markets would be studied via Porter's five forces analysis which would highlight the degree of rivalry in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the presence of fragmented segments with Huaneng Power International Inc Raising Capital In Global Markets taking pleasure in management and a combined market share of 75% with two other market players, Eastman and Permabond. While industry competition between these players could be called 'intense' as the customer is not brand mindful and each of these gamers has prominence in regards to market share, the reality still remains that the market is not filled and still has numerous market sectors which can be targeted as prospective specific niche markets even when releasing an adhesive. Nevertheless, we can even explain the truth that sales cannibalization may be resulting in industry competition in the adhesive dispenser market while the marketplace for immediate adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low specifically as the buyer has low knowledge about the product. While companies like Huaneng Power International Inc Raising Capital In Global Markets have actually managed to train distributors relating to adhesives, the final customer is dependent on distributors. Roughly 72% of sales are made straight by manufacturers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the fact that the adhesive market is controlled by 3 players, it could be stated that the provider delights in a greater bargaining power compared to the buyer. The truth stays that the provider does not have much impact over the buyer at this point specifically as the buyer does not reveal brand name recognition or cost level of sensitivity. This suggests that the distributor has the greater power when it comes to the adhesive market while the buyer and the manufacturer do not have a significant control over the actual sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market suggests that the marketplace allows ease of entry. Nevertheless, if we take a look at Huaneng Power International Inc Raising Capital In Global Markets in particular, the company has dual abilities in regards to being a producer of adhesive dispensers and immediate adhesives. Potential dangers in devices dispensing market are low which reveals the possibility of creating brand awareness in not just instant adhesives but also in giving adhesives as none of the industry players has actually managed to place itself in double capabilities.

Threat of Substitutes: The threat of replacements in the immediate adhesive market is low while the dispenser market in particular has replacements like Glumetic pointer applicators, inbuilt applicators, pencil applicators and advanced consoles. The fact stays that if Huaneng Power International Inc Raising Capital In Global Markets presented Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Huaneng Power International Inc Raising Capital In Global Markets Case Study Help


Despite the fact that our 3C analysis has given different reasons for not introducing Case Study Help under Huaneng Power International Inc Raising Capital In Global Markets name, we have a recommended marketing mix for Case Study Help provided listed below if Huaneng Power International Inc Raising Capital In Global Markets decides to go ahead with the launch.

Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a number of factors. There are presently 89257 facilities in this segment and a high use of roughly 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which may be a sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this specific 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 usage with SuperBonder. The product would be sold without the 'glumetic idea' and 'vari-drop' so that the customer can decide whether he wishes to opt for either of the two accessories or not.

Price: The suggested rate of Case Study Help has actually been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This price would not include the cost of the 'vari suggestion' or the 'glumetic tip'. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep store requires to purchase the product on his own. This would increase the possibility of influencing mechanics to buy the product for usage in their daily maintenance tasks.

Huaneng Power International Inc Raising Capital In Global Markets would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Huaneng Power International Inc Raising Capital In Global Markets for launching Case Study Help.

Place: A distribution model where Huaneng Power International Inc Raising Capital In Global Markets directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Huaneng Power International Inc Raising Capital In Global Markets. Considering that the sales team is already engaged in selling immediate adhesives and they do not have proficiency in selling dispensers, involving them in the selling process would be pricey particularly as each sales call costs around $120. The distributors are currently offering dispensers so selling Case Study Help through them would be a favorable choice.

Promotion: Although a low promotional budget ought to have been appointed to Case Study Help however the truth 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 strategy costing $51816 is recommended for at first presenting the item in the market. The prepared ads in magazines would be targeted at mechanics in lorry maintenance shops. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Huaneng Power International Inc Raising Capital In Global Markets Case Study Analysis

A suggested strategy of action in the kind of a marketing mix has been discussed for Case Study Help, the fact still remains that the product would not match Huaneng Power International Inc Raising Capital In Global Markets product line. We have a look at appendix 2, we can see how the total gross success for the two designs is anticipated to be approximately $49377 if 250 units of each model are manufactured annually according to the strategy. However, the initial prepared marketing is approximately $52000 each year which would be putting a stress on the business's resources leaving Huaneng Power International Inc Raising Capital In Global Markets with an unfavorable net income if the expenses are designated to Case Study Help only.

The truth that Huaneng Power International Inc Raising Capital In Global Markets has actually already sustained a preliminary financial investment of $48000 in the form of capital expense and model development shows that the earnings from Case Study Help is insufficient to carry out the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more effective alternative especially of it is impacting the sale of the company's revenue generating models.



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