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Olympus Optical Co Ltd B Functional Group Management Case Study Help Checklist

Olympus Optical Co Ltd B Functional Group Management Case Study Help Checklist

Olympus Optical Co Ltd B Functional Group Management Case Study Solution
Olympus Optical Co Ltd B Functional Group Management Case Study Help
Olympus Optical Co Ltd B Functional Group Management Case Study Analysis



Analyses for Evaluating Olympus Optical Co Ltd B Functional Group Management decision to launch Case Study Solution


The following section concentrates on the of marketing for Olympus Optical Co Ltd B Functional Group Management where the business's consumers, rivals and core proficiencies have assessed in order to justify whether the decision to introduce Case Study Help under Olympus Optical Co Ltd B Functional Group Management brand name would be a practical choice or not. We have actually first of all looked at the kind of customers that Olympus Optical Co Ltd B Functional Group Management deals in while an assessment of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Olympus Optical Co Ltd B Functional Group Management name.
Olympus Optical Co Ltd B Functional Group Management Case Study Solution

Customer Analysis

Both the groups utilize Olympus Optical Co Ltd B Functional Group Management high efficiency adhesives while the company is not just involved in the production of these adhesives however likewise markets them to these customer groups. We would be focusing on the customers of instantaneous adhesives for this analysis since the market for the latter has a lower potential for Olympus Optical Co Ltd B Functional Group Management compared to that of instantaneous adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we look at a breakdown of Olympus Optical Co Ltd B Functional Group Management prospective market or client groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair and revamping companies (MRO) and manufacturers dealing in products made from leather, metal, wood and plastic. This variety in clients suggests that Olympus Optical Co Ltd B Functional Group Management can target has various options in terms of segmenting the marketplace for its new product particularly as each of these groups would be requiring the very same type of product with particular modifications in amount, need or packaging. Nevertheless, the consumer is not cost delicate or brand conscious so releasing a low priced dispenser under Olympus Optical Co Ltd B Functional Group Management name is not a recommended option.

Company Analysis

Olympus Optical Co Ltd B Functional Group Management is not simply a manufacturer of adhesives but takes pleasure in market leadership in the immediate adhesive market. The business has its own knowledgeable and certified sales force which includes value to sales by training the business's network of 250 suppliers for assisting in the sale of adhesives.

Core proficiencies are not limited to adhesive production just as Olympus Optical Co Ltd B Functional Group Management likewise concentrates on making adhesive giving equipment to help with making use of its items. This dual production strategy gives Olympus Optical Co Ltd B Functional Group Management an edge over competitors because none of the rivals of dispensing devices makes instantaneous adhesives. Furthermore, none of these rivals sells directly to the customer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Olympus Optical Co Ltd B Functional Group Management, it is crucial to highlight the company's weak points.

The business's sales personnel is competent in training distributors, the fact stays that the sales group is not trained in offering equipment so there is a possibility of relying heavily on distributors when promoting adhesive equipment. Nevertheless, it needs to likewise be noted that the suppliers are showing reluctance when it concerns selling devices that needs maintenance which increases the challenges of offering devices under a specific brand name.

The company has actually products intended at the high end of the market if we look at Olympus Optical Co Ltd B Functional Group Management item line in adhesive equipment particularly. If Olympus Optical Co Ltd B Functional Group Management offers Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Olympus Optical Co Ltd B Functional Group Management high-end line of product, sales cannibalization would certainly be impacting Olympus Optical Co Ltd B Functional Group Management sales earnings if the adhesive devices is offered under the business's brand.

We can see sales cannibalization impacting Olympus Optical Co Ltd B Functional Group Management 27A Pencil Applicator which is priced at $275. There is another possible danger which might decrease Olympus Optical Co Ltd B Functional Group Management income if Case Study Help is released under the company's trademark name. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great 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 instantaneous adhesive.

Additionally, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or cost consciousness which offers us two extra reasons for not introducing a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Olympus Optical Co Ltd B Functional Group Management would be studied via Porter's 5 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 presence of fragmented sectors with Olympus Optical Co Ltd B Functional Group Management delighting in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry competition in between these players could be called 'intense' as the consumer 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 several market segments which can be targeted as potential specific niche markets even when introducing an adhesive. We can even point out the reality that sales cannibalization might be leading to market competition in the adhesive dispenser market while the market for instantaneous adhesives uses growth potential.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low especially as the purchaser has low understanding about the product. While business like Olympus Optical Co Ltd B Functional Group Management have actually handled to train suppliers relating to adhesives, the final consumer depends on suppliers. Approximately 72% of sales are made straight by producers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Given the truth that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. However, the fact remains that the provider does not have much impact over the buyer at this moment especially as the purchaser does not show brand acknowledgment or price level of sensitivity. This shows that the distributor has the higher power when it comes to the adhesive market while the manufacturer and the purchaser 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 revealed by foreign Japanese rivals in the immediate adhesive market indicates that the market enables ease of entry. If we look at Olympus Optical Co Ltd B Functional Group Management in specific, the company has double abilities in terms of being a maker of adhesive dispensers and instant adhesives. Prospective risks in equipment giving industry are low which shows the possibility of developing brand name awareness in not only instantaneous adhesives but also in dispensing adhesives as none of the industry players has actually handled to place itself in double capabilities.

Threat of Substitutes: The threat of alternatives 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 Olympus Optical Co Ltd B Functional Group Management introduced Case Study Help, it would be indulging in 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 B Functional Group Management Case Study Help


Despite the fact that our 3C analysis has actually offered different factors for not releasing Case Study Help under Olympus Optical Co Ltd B Functional Group Management name, we have actually a suggested marketing mix for Case Study Help offered below if Olympus Optical Co Ltd B Functional Group Management chooses to go on with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor vehicle services' for a number of factors. There are presently 89257 facilities in this sector and a high usage of roughly 58900 pounds. is being utilized by 36.1 % of the market. This market has an extra growth capacity of 10.1% which may be a good enough specific niche market segment for Case Study Help. Not just would a portable dispenser offer convenience to this particular market, the reality that the Do-it-Yourself market can also be targeted if a potable low priced adhesive is being cost use with SuperBonder. The product would be offered without the 'glumetic suggestion' and 'vari-drop' so that the customer can choose whether he wants to choose either of the two accessories or not.

Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is offered through distributors or through direct selling. This rate would not consist of the cost of the 'vari tip' or the 'glumetic pointer'. A rate listed below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep shop needs to buy the item on his own. This would increase the possibility of influencing mechanics to buy the item for usage in their day-to-day upkeep jobs.

Olympus Optical Co Ltd B Functional Group Management would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net success for Olympus Optical Co Ltd B Functional Group Management for launching Case Study Help.

Place: A circulation model where Olympus Optical Co Ltd B Functional Group Management directly sends the item to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Olympus Optical Co Ltd B Functional Group Management. Since the sales group is already engaged in offering instantaneous adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be costly particularly as each sales call costs around $120. The suppliers are currently offering dispensers so selling Case Study Help through them would be a favorable option.

Promotion: A low marketing budget should have been designated to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital costs incurred for production, the suggested marketing strategy costing $51816 is recommended for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in automobile maintenance stores. (Suggested text for the ad is shown 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 B Functional Group Management Case Study Analysis

A recommended plan of action in the type of a marketing mix has been gone over for Case Study Help, the fact still stays that the item would not match Olympus Optical Co Ltd B Functional Group Management item line. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be approximately $49377 if 250 units of each model are produced annually based on the strategy. However, the initial planned advertising is approximately $52000 each year which would be putting a strain on the business's resources leaving Olympus Optical Co Ltd B Functional Group Management with a negative net income if the expenditures are allocated to Case Study Help just.

The truth that Olympus Optical Co Ltd B Functional Group Management has currently sustained an initial investment of $48000 in the form of capital expense and prototype development shows that the earnings from Case Study Help is insufficient to carry out the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable choice especially of it is impacting the sale of the company's profits producing models.



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