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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



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


The following section concentrates on the 3Cs of marketing for Huaneng Power International Inc Raising Capital In Global Markets where the company's clients, rivals and core competencies have evaluated in order to validate whether the decision to introduce Case Study Help under Huaneng Power International Inc Raising Capital In Global Markets brand name would be a practical alternative or not. We have first of all looked at the kind of clients that Huaneng Power International Inc Raising Capital In Global Markets handle while an examination of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the reason 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

Huaneng Power International Inc Raising Capital In Global Markets consumers can be segmented into 2 groups, industrial customers and final consumers. Both the groups use Huaneng Power International Inc Raising Capital In Global Markets high performance adhesives while the company is not only involved in the production of these adhesives but also markets them to these consumer groups. There are two types of items that are being offered to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis since the marketplace for the latter has a lower capacity for Huaneng Power International Inc Raising Capital In Global Markets compared to that of instantaneous adhesives.

The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have actually been identified earlier.If we take a look at a breakdown of Huaneng Power International Inc Raising Capital In Global Markets potential market or consumer groups, we can see that the company sells to OEMs (Original Devices Manufacturers), Do-it-Yourself customers, repair work and upgrading companies (MRO) and makers dealing in products made of leather, plastic, wood and metal. This variety in customers suggests that Huaneng Power International Inc Raising Capital In Global Markets can target has numerous alternatives in terms of segmenting the marketplace for its new product especially as each of these groups would be needing the same type of product with respective modifications in demand, packaging or amount. The consumer is not rate delicate or brand name mindful so introducing a low priced dispenser under Huaneng Power International Inc Raising Capital In Global Markets name is not a suggested option.

Company Analysis

Huaneng Power International Inc Raising Capital In Global Markets is not just a producer of adhesives however delights in market leadership in the instantaneous adhesive industry. The business has its own skilled and certified sales force which adds worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives. Huaneng Power International Inc Raising Capital In Global Markets believes in exclusive distribution as suggested by the truth that it has actually selected to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be explored for broadening reach via suppliers. The company's reach is not limited to North America just as it likewise enjoys international sales. With 1400 outlets spread all across The United States and Canada, Huaneng Power International Inc Raising Capital In Global Markets has its in-house production plants instead of utilizing out-sourcing as the favored strategy.

Core skills are not limited to adhesive manufacturing only as Huaneng Power International Inc Raising Capital In Global Markets likewise specializes in making adhesive dispensing devices to help with using its products. This double production method offers Huaneng Power International Inc Raising Capital In Global Markets an edge over rivals because none of the rivals of dispensing equipment makes instantaneous adhesives. Additionally, none of these rivals sells straight to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of Huaneng Power International Inc Raising Capital In Global Markets, it is essential to highlight the company's weak points also.

The business's sales personnel is knowledgeable 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 needs to likewise be kept in mind that the suppliers are revealing hesitation when it comes to offering devices that requires servicing which increases the obstacles of offering equipment under a particular brand name.

If we take a look at Huaneng Power International Inc Raising Capital In Global Markets line of product in adhesive equipment especially, the company has products focused on the high-end of the market. If Huaneng Power International Inc Raising Capital In Global Markets sells Case Study Help under the very same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Huaneng Power International Inc Raising Capital In Global Markets high-end line of product, sales cannibalization would absolutely be impacting Huaneng Power International Inc Raising Capital In Global Markets sales profits if the adhesive equipment is sold under the business's brand name.

We can see sales cannibalization impacting Huaneng Power International Inc Raising Capital In Global Markets 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the business's brand name, there is another possible risk which might lower Huaneng Power International Inc Raising Capital In Global Markets income. The fact that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

Additionally, if we take a look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us two extra factors for not releasing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Huaneng Power International Inc Raising Capital In Global Markets would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high growth capacity due to the existence of fragmented sectors with Huaneng Power International Inc Raising Capital In Global Markets enjoying management and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry between these players could be called 'intense' as the customer is not brand name mindful and each of these gamers has prominence in regards to market share, the reality still remains that the industry is not filled and still has a number of market sections which can be targeted as potential specific niche markets even when introducing an adhesive. However, we can even explain the fact that sales cannibalization might be causing industry competition in the adhesive dispenser market while the marketplace for immediate adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the purchaser has low understanding about the item. While companies like Huaneng Power International Inc Raising Capital In Global Markets have managed to train distributors relating to adhesives, the last consumer depends on suppliers. Around 72% of sales are made straight by makers and distributors for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by three players, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much impact over the buyer at this point especially as the buyer does not show brand name recognition or rate sensitivity. This shows that the distributor has the greater power when it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market shows that the market enables ease of entry. However, if we take a look at Huaneng Power International Inc Raising Capital In Global Markets in particular, the business has double capabilities in terms of being a maker of adhesive dispensers and instant adhesives. Prospective hazards in equipment dispensing industry are low which reveals the possibility of producing brand name awareness in not just immediate adhesives however likewise in giving adhesives as none of the industry gamers has actually handled to place itself in dual capabilities.

Hazard of Substitutes: The danger of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth stays that if Huaneng Power International Inc Raising Capital In Global Markets introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (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 provided different factors for not releasing Case Study Help under Huaneng Power International Inc Raising Capital In Global Markets name, we have a suggested marketing mix for Case Study Help provided below if Huaneng Power International Inc Raising Capital In Global Markets decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an additional growth capacity of 10.1% which might be a great enough niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this specific market, the truth that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. This price would not include the expense of the 'vari tip' or the 'glumetic suggestion'. A price below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store requires to purchase the product on his own. This would increase the possibility of affecting mechanics to purchase the product for use in their everyday maintenance jobs.

Huaneng Power International Inc Raising Capital In Global Markets would only be getting $157 per unit as displayed in appendix 2 which provides a breakdown of gross profitability and net profitability for Huaneng Power International Inc Raising Capital In Global Markets for releasing Case Study Help.

Place: A distribution model where Huaneng Power International Inc Raising Capital In Global Markets straight sends the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be used by Huaneng Power International Inc Raising Capital In Global Markets. Because the sales team is currently taken part in offering instantaneous adhesives and they do not have competence in offering dispensers, involving them in the selling procedure would be expensive particularly as each sales call costs roughly $120. The distributors are already selling dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: Although a low advertising spending plan needs to have been designated to Case Study Help however the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising strategy costing $51816 is suggested for at first introducing the product in the market. The prepared advertisements in magazines 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).


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

Although a suggested strategy in the form of a marketing mix has actually been discussed for Case Study Help, the truth still stays that the product would not complement Huaneng Power International Inc Raising Capital In Global Markets line of product. We have a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be roughly $49377 if 250 units of each model are manufactured each year based on the strategy. The preliminary planned marketing is around $52000 per year which would be putting a strain on the business's resources leaving Huaneng Power International Inc Raising Capital In Global Markets with an unfavorable net income if the expenses are allocated to Case Study Help only.

The reality that Huaneng Power International Inc Raising Capital In Global Markets has currently incurred an initial investment of $48000 in the form of capital expense and model development shows that the income from Case Study Help is inadequate to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of demand is not a preferable choice especially of it is affecting the sale of the business's income creating models.



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