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Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Help Checklist

Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Help Checklist

Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Solution
Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Help
Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Analysis



Analyses for Evaluating Lehman Brothers And The Securitization Of American Express Charge Card Receivables decision to launch Case Study Solution


The following area focuses on the of marketing for Lehman Brothers And The Securitization Of American Express Charge Card Receivables where the business's customers, competitors and core competencies have actually evaluated in order to justify whether the choice to launch Case Study Help under Lehman Brothers And The Securitization Of American Express Charge Card Receivables brand would be a practical choice or not. We have actually firstly looked at the type of customers that Lehman Brothers And The Securitization Of American Express Charge Card Receivables handle while an examination of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Lehman Brothers And The Securitization Of American Express Charge Card Receivables name.
Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Solution

Customer Analysis

Lehman Brothers And The Securitization Of American Express Charge Card Receivables consumers can be segmented into 2 groups, industrial customers and last customers. Both the groups utilize Lehman Brothers And The Securitization Of American Express Charge Card Receivables high performance adhesives while the company is not just involved in the production of these adhesives but also markets them to these client groups. There are two types of products that are being sold to these potential markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of immediate adhesives for this analysis given that the marketplace for the latter has a lower potential for Lehman Brothers And The Securitization Of American Express Charge Card Receivables compared to that of instantaneous adhesives.

The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Lehman Brothers And The Securitization Of American Express Charge Card Receivables possible market or consumer groups, we can see that the company offers to OEMs (Initial Equipment Producers), Do-it-Yourself consumers, repair work and revamping business (MRO) and producers handling items made of leather, metal, wood and plastic. This diversity in consumers recommends that Lehman Brothers And The Securitization Of American Express Charge Card Receivables can target has numerous choices in regards to segmenting the marketplace for its brand-new product specifically as each of these groups would be needing the same kind of item with particular modifications in amount, product packaging or need. Nevertheless, the consumer is not rate delicate or brand mindful so launching a low priced dispenser under Lehman Brothers And The Securitization Of American Express Charge Card Receivables name is not a recommended option.

Company Analysis

Lehman Brothers And The Securitization Of American Express Charge Card Receivables is not just a producer of adhesives but takes pleasure in market management in the immediate adhesive industry. The business has its own knowledgeable and qualified sales force which adds value to sales by training the business's network of 250 distributors for helping with the sale of adhesives.

Core skills are not limited to adhesive manufacturing just as Lehman Brothers And The Securitization Of American Express Charge Card Receivables likewise concentrates on making adhesive dispensing equipment to assist in using its products. This double production strategy offers Lehman Brothers And The Securitization Of American Express Charge Card Receivables an edge over rivals since none of the rivals of giving devices makes instant adhesives. Furthermore, none of these rivals sells directly to the customer either and utilizes distributors for reaching out to customers. While we are taking a look at the strengths of Lehman Brothers And The Securitization Of American Express Charge Card Receivables, it is important to highlight the business's weaknesses too.

The business's sales personnel is experienced in training suppliers, the reality remains that the sales group is not trained in offering equipment so there is a possibility of relying greatly on distributors when promoting adhesive equipment. Nevertheless, it needs to likewise be kept in mind that the suppliers are revealing reluctance when it pertains to selling equipment that needs maintenance which increases the difficulties of offering equipment under a particular trademark name.

The business has items intended at the high end of the market if we look at Lehman Brothers And The Securitization Of American Express Charge Card Receivables product line in adhesive devices especially. The possibility of sales cannibalization exists if Lehman Brothers And The Securitization Of American Express Charge Card Receivables sells Case Study Help under the exact same portfolio. Offered the truth that Case Study Help is priced lower than Lehman Brothers And The Securitization Of American Express Charge Card Receivables high-end line of product, sales cannibalization would absolutely be affecting Lehman Brothers And The Securitization Of American Express Charge Card Receivables sales earnings if the adhesive devices is offered under the company's brand name.

We can see sales cannibalization impacting Lehman Brothers And The Securitization Of American Express Charge Card Receivables 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the business's brand name, there is another possible danger which could decrease Lehman Brothers And The Securitization Of American Express Charge Card Receivables earnings. The fact that $175000 has been spent in promoting SuperBonder recommends that it is not a good 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 instant adhesive.

Furthermore, if we take a look at the marketplace in general, the adhesives market does not show brand name orientation or cost awareness which gives us two additional factors for not introducing a low priced item under the business's trademark name.

Competitor Analysis

The competitive environment of Lehman Brothers And The Securitization Of American Express Charge Card Receivables would be studied by means of Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Presently we can see that the adhesive market has a high development capacity due to the existence of fragmented segments with Lehman Brothers And The Securitization Of American Express Charge Card Receivables taking pleasure in leadership and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While industry competition between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these gamers has prominence in terms of market share, the reality still remains that the industry is not saturated and still has several market sectors which can be targeted as prospective specific niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization may be leading to industry competition in the adhesive dispenser market while the market for instant adhesives offers growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low knowledge about the product. While business like Lehman Brothers And The Securitization Of American Express Charge Card Receivables have managed to train distributors concerning adhesives, the last customer is dependent on suppliers. Roughly 72% of sales are made directly by makers and distributors for instant adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by three players, it could be said that the provider enjoys a greater bargaining power compared to the buyer. The truth stays that the supplier does not have much impact over the purchaser at this point especially as the purchaser does not reveal brand name acknowledgment or cost sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the real sales, this suggests that the distributor 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 immediate adhesive market indicates that the market allows ease of entry. If we look at Lehman Brothers And The Securitization Of American Express Charge Card Receivables in particular, the company has double capabilities in terms of being a producer of instant adhesives and adhesive dispensers. Potential risks in equipment giving industry are low which reveals the possibility of developing brand awareness in not only immediate adhesives however also in dispensing adhesives as none of the industry gamers has handled to position itself in dual capabilities.

Threat of Substitutes: The risk of substitutes in the immediate adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth stays that if Lehman Brothers And The Securitization Of American Express Charge Card Receivables presented 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

Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Help


Despite the fact that our 3C analysis has actually given different factors for not introducing Case Study Help under Lehman Brothers And The Securitization Of American Express Charge Card Receivables name, we have a recommended marketing mix for Case Study Help given listed below if Lehman Brothers And The Securitization Of American Express Charge Card Receivables decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of factors. This market has an extra growth capacity of 10.1% which might be a great sufficient specific niche market sector for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the fact that the Diy market can also be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or by means of direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic pointer'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop requires to acquire the item on his own. This would increase the possibility of influencing mechanics to acquire the product for use in their daily upkeep tasks.

Lehman Brothers And The Securitization Of American Express Charge Card Receivables would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross profitability and net success for Lehman Brothers And The Securitization Of American Express Charge Card Receivables for launching Case Study Help.

Place: A distribution model where Lehman Brothers And The Securitization Of American Express Charge Card Receivables directly sends the product to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Lehman Brothers And The Securitization Of American Express Charge Card Receivables. Because the sales group is already engaged in selling immediate adhesives and they do not have expertise in selling dispensers, involving them in the selling process would be expensive especially as each sales call expenses roughly $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial choice.

Promotion: Although a low advertising budget must 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 expenses sustained for production, the suggested marketing plan costing $51816 is suggested for initially introducing the product in the market. The planned ads in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been gone over for Case Study Help, the fact still remains that the item would not match Lehman Brothers And The Securitization Of American Express Charge Card Receivables product line. We have a look at appendix 2, we can see how the overall gross profitability for the two models is anticipated to be around $49377 if 250 systems of each model are produced each year according to the plan. The preliminary planned advertising is approximately $52000 per year which would be putting a strain on the business's resources leaving Lehman Brothers And The Securitization Of American Express Charge Card Receivables with an unfavorable net income if the expenses are designated to Case Study Help only.

The truth that Lehman Brothers And The Securitization Of American Express Charge Card Receivables has already incurred a preliminary investment of $48000 in the form of capital cost and prototype development suggests that the income from Case Study Help is not enough to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a more effective choice particularly of it is impacting the sale of the business's revenue creating designs.



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