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Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Help Checklist

Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Help Checklist

Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Solution
Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Help
Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Analysis



Analyses for Evaluating Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products decision to launch Case Study Solution


The following section concentrates on the of marketing for Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products where the company's customers, rivals and core competencies have examined in order to justify whether the decision to launch Case Study Help under Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products brand name would be a feasible choice or not. We have to start with taken a look at the type of customers that Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products handle while an evaluation of the competitive environment and the business's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products name.
Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Solution

Customer Analysis

Both the groups use Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products high efficiency adhesives while the company is not just involved in the production of these adhesives however also markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products compared to that of immediate adhesives.

The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been recognized earlier.If we look at a breakdown of Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products potential market or consumer groups, we can see that the company offers to OEMs (Initial Equipment Manufacturers), Do-it-Yourself clients, repair work and overhauling business (MRO) and producers handling products made of leather, plastic, metal and wood. This diversity in consumers recommends that Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products can target has numerous alternatives in terms of segmenting the marketplace for its brand-new item specifically as each of these groups would be requiring the very same kind of item with respective changes in quantity, need or product packaging. The customer is not price delicate or brand conscious so introducing a low priced dispenser under Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products name is not a recommended option.

Company Analysis

Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products is not simply a maker of adhesives but delights in market management in the instant adhesive market. The company has its own proficient and competent sales force which adds value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives.

Core competences are not limited to adhesive manufacturing just as Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products likewise focuses on making adhesive giving equipment to facilitate making use of its items. This double production strategy gives Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products an edge over competitors given that none of the rivals of dispensing devices makes instantaneous adhesives. In addition, none of these competitors offers directly to the consumer either and makes use of distributors for connecting to clients. While we are looking at the strengths of Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products, it is essential to highlight the company's weaknesses.

The business's sales staff is competent in training suppliers, the truth remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. However, it must also be kept in mind that the distributors are revealing reluctance when it comes to offering devices that needs servicing which increases the difficulties of offering devices under a particular brand.

The company has actually products aimed at the high end of the market if we look at Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products item line in adhesive equipment especially. If Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the reality that Case Study Help is priced lower than Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products high-end product line, sales cannibalization would certainly be impacting Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products sales earnings if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization affecting Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products 27A Pencil Applicator which is priced at $275. There is another possible threat which could decrease Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products income if Case Study Help is released under the business's brand name. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for introducing 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 take a look at the market in general, the adhesives market does not show brand name orientation or cost consciousness which offers us two additional factors for not releasing a low priced product under the company's brand.

Competitor Analysis

The competitive environment of Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products 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 growth potential due to the existence of fragmented sections with Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products delighting 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 customer is not brand conscious and each of these players has prominence in terms of market share, the fact still remains that the industry is not filled and still has numerous market segments which can be targeted as possible niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instant adhesives provides growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this market is low especially as the buyer has low understanding about the product. While business like Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products have handled to train distributors regarding adhesives, the last customer depends on distributors. Roughly 72% of sales are made straight by manufacturers and suppliers for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by 3 players, it could be said that the supplier delights in a higher bargaining power compared to the purchaser. Nevertheless, the truth remains that the supplier does not have much impact over the purchaser at this moment particularly as the buyer does disappoint brand recognition or price level of sensitivity. This indicates that the distributor has the greater power when it comes to the adhesive market while the purchaser and the producer do not have a major control over the actual sales.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market shows that the marketplace enables ease of entry. If we look at Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products in specific, the company has double capabilities in terms of being a manufacturer of instant adhesives and adhesive dispensers. Potential hazards in devices dispensing market are low which shows the possibility of developing brand name awareness in not just instantaneous adhesives but also in giving adhesives as none of the market gamers has handled to position itself in dual capabilities.

Threat of Substitutes: The hazard of substitutes in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth stays that if Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).


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

Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Help


Despite the fact that our 3C analysis has provided various factors for not releasing Case Study Help under Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products name, we have actually a recommended marketing mix for Case Study Help given below if Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of factors. This market has an additional development potential of 10.1% which might be a great enough specific niche market sector for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being offered for usage with SuperBonder.

Price: The recommended cost of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A cost listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep store requires to buy the item on his own.

Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross profitability and net success for Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products for introducing Case Study Help.

Place: A distribution model where Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products directly sends out the item to the local distributor and keeps a 10% drop delivery allowance for the supplier would be used by Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products. Because the sales team is already participated in offering instantaneous adhesives and they do not have knowledge in selling dispensers, including them in the selling process would be expensive 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 choice.

Promotion: Although a low advertising spending plan must have been appointed to Case Study Help but 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 advertising strategy costing $51816 is suggested for initially presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in car maintenance shops. (Recommended 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
Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products Case Study Analysis

A suggested strategy of action in the kind of a marketing mix has been gone over for Case Study Help, the fact still remains that the item would not match Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products product line. We take a look at appendix 2, we can see how the overall gross success for the two designs is expected to be roughly $49377 if 250 systems of each model are made per year based on the strategy. Nevertheless, the preliminary planned marketing is around $52000 annually which would be putting a pressure on the company's resources leaving Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products with an unfavorable earnings if the costs are assigned to Case Study Help only.

The reality that Olympus Optical Co Ltd A Cost Management For Short Life Cycle Products has already sustained a preliminary financial investment of $48000 in the form of capital cost and prototype development suggests that the profits from Case Study Help is inadequate to undertake the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a preferable choice specifically of it is affecting the sale of the company's revenue creating designs.



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