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Osg Corporation Risk Hedging Against Transaction Exposures Case Study Help Checklist

Osg Corporation Risk Hedging Against Transaction Exposures Case Study Help Checklist

Osg Corporation Risk Hedging Against Transaction Exposures Case Study Solution
Osg Corporation Risk Hedging Against Transaction Exposures Case Study Help
Osg Corporation Risk Hedging Against Transaction Exposures Case Study Analysis



Analyses for Evaluating Osg Corporation Risk Hedging Against Transaction Exposures decision to launch Case Study Solution


The following area focuses on the of marketing for Osg Corporation Risk Hedging Against Transaction Exposures where the company's customers, rivals and core competencies have examined in order to validate whether the choice to release Case Study Help under Osg Corporation Risk Hedging Against Transaction Exposures brand name would be a possible choice or not. We have first of all looked at the type of clients that Osg Corporation Risk Hedging Against Transaction Exposures handle while an evaluation 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 Osg Corporation Risk Hedging Against Transaction Exposures name.
Osg Corporation Risk Hedging Against Transaction Exposures Case Study Solution

Customer Analysis

Both the groups utilize Osg Corporation Risk Hedging Against Transaction Exposures high efficiency adhesives while the company is not only involved in the production of these adhesives however also markets them to these consumer groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower potential for Osg Corporation Risk Hedging Against Transaction Exposures compared to that of immediate adhesives.

The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both customer groups which have been determined earlier.If we look at a breakdown of Osg Corporation Risk Hedging Against Transaction Exposures possible market or customer groups, we can see that the business offers to OEMs (Initial Devices Makers), Do-it-Yourself consumers, repair work and revamping companies (MRO) and makers handling products made from leather, wood, plastic and metal. This variety in consumers suggests that Osg Corporation Risk Hedging Against Transaction Exposures can target has various options in regards to segmenting the market for its brand-new product especially as each of these groups would be needing the same kind of product with particular changes in packaging, quantity or demand. The client is not price delicate or brand mindful so launching a low priced dispenser under Osg Corporation Risk Hedging Against Transaction Exposures name is not a recommended choice.

Company Analysis

Osg Corporation Risk Hedging Against Transaction Exposures is not just a manufacturer of adhesives but takes pleasure in market leadership in the instantaneous adhesive industry. The company has its own competent and qualified sales force which includes worth to sales by training the company's network of 250 distributors for facilitating the sale of adhesives.

Core competences are not restricted to adhesive production just as Osg Corporation Risk Hedging Against Transaction Exposures likewise specializes in making adhesive dispensing devices to facilitate making use of its items. This dual production strategy gives Osg Corporation Risk Hedging Against Transaction Exposures an edge over rivals since none of the rivals of dispensing equipment makes immediate adhesives. Additionally, none of these competitors sells directly to the consumer either and uses distributors for connecting to consumers. While we are looking at the strengths of Osg Corporation Risk Hedging Against Transaction Exposures, it is crucial to highlight the company's weaknesses.

The business's sales personnel is skilled in training distributors, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it needs to likewise be kept in mind that the suppliers are revealing reluctance when it comes to offering devices that needs servicing which increases the challenges of selling devices under a particular brand name.

If we look at Osg Corporation Risk Hedging Against Transaction Exposures product line in adhesive devices particularly, the business has products aimed at the high-end of the market. The possibility of sales cannibalization exists if Osg Corporation Risk Hedging Against Transaction Exposures sells Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Osg Corporation Risk Hedging Against Transaction Exposures high-end line of product, sales cannibalization would definitely be affecting Osg Corporation Risk Hedging Against Transaction Exposures sales income if the adhesive equipment is offered under the business's brand.

We can see sales cannibalization impacting Osg Corporation Risk Hedging Against Transaction Exposures 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 could decrease Osg Corporation Risk Hedging Against Transaction Exposures income. The fact that $175000 has actually been invested in promoting SuperBonder suggests that it is not a good 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 instant adhesive.

In addition, if we look at the marketplace in general, the adhesives market does not show brand name orientation or cost consciousness which gives us 2 additional reasons for not launching a low priced product under the business's brand name.

Competitor Analysis

The competitive environment of Osg Corporation Risk Hedging Against Transaction Exposures would be studied via Porter's five forces analysis which would highlight the degree of rivalry 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 Osg Corporation Risk Hedging Against Transaction Exposures taking pleasure in management and a combined market share of 75% with two other industry gamers, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the customer is not brand name mindful and each of these players has prominence in terms of market share, the fact still stays that the industry is not saturated and still has a number of market sections which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the fact that sales cannibalization may be leading to industry rivalry in the adhesive dispenser market while the market for instant adhesives offers development potential.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low knowledge about the product. While business like Osg Corporation Risk Hedging Against Transaction Exposures have actually managed to train distributors concerning adhesives, the last customer depends on suppliers. Approximately 72% of sales are made straight by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by three players, it could be said that the provider enjoys a higher bargaining power compared to the purchaser. However, the fact remains that the provider does not have much influence over the purchaser at this moment especially as the buyer does disappoint brand recognition or price sensitivity. This indicates that the supplier has the greater power when it comes to the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the instantaneous adhesive market suggests that the marketplace allows ease of entry. If we look at Osg Corporation Risk Hedging Against Transaction Exposures in specific, the company has double capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Potential hazards in devices giving market are low which reveals the possibility of producing brand name awareness in not just immediate adhesives but also in dispensing adhesives as none of the industry players has actually managed to position itself in double abilities.

Risk of Substitutes: The hazard of substitutes in the immediate adhesive industry is low while the dispenser market in particular has substitutes like Glumetic pointer applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The reality remains that if Osg Corporation Risk Hedging Against Transaction Exposures 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

Osg Corporation Risk Hedging Against Transaction Exposures Case Study Help


Despite the fact that our 3C analysis has actually given different reasons for not launching Case Study Help under Osg Corporation Risk Hedging Against Transaction Exposures name, we have actually a recommended marketing mix for Case Study Help provided listed below if Osg Corporation Risk Hedging Against Transaction Exposures chooses to proceed with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Automobile services' for a number of reasons. There are currently 89257 facilities in this sector and a high use of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which might be a sufficient specific niche market sector for Case Study Help. Not only would a portable dispenser offer convenience to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder. The item would be offered without the 'glumetic suggestion' and 'vari-drop' so that the consumer can decide whether he wishes to choose 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 distributors or via direct selling. A rate below $250 would not require approvals from the senior management in case a mechanic at a motor car upkeep store requires to buy the product on his own.

Osg Corporation Risk Hedging Against Transaction Exposures would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Osg Corporation Risk Hedging Against Transaction Exposures for releasing Case Study Help.

Place: A circulation design where Osg Corporation Risk Hedging Against Transaction Exposures directly sends the item to the local supplier and keeps a 10% drop shipment allowance for the supplier would be utilized by Osg Corporation Risk Hedging Against Transaction Exposures. Given that the sales group is currently participated in selling instantaneous adhesives and they do not have competence in offering dispensers, including them in the selling procedure would be pricey especially as each sales call expenses approximately $120. The suppliers are currently selling dispensers so selling Case Study Help through them would be a beneficial option.

Promotion: Although a low advertising budget needs to have been appointed to Case Study Help however the truth that the dispenser is a development and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested advertising strategy costing $51816 is recommended for at first presenting the item in the market. The planned ads in magazines would be targeted at mechanics in vehicle maintenance stores. (Suggested 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
Osg Corporation Risk Hedging Against Transaction Exposures Case Study Analysis

A recommended strategy of action in the kind of a marketing mix has actually been gone over for Case Study Help, the reality still remains that the product would not match Osg Corporation Risk Hedging Against Transaction Exposures product line. We have a look at appendix 2, we can see how the total gross profitability for the two designs is anticipated to be approximately $49377 if 250 units of each model are produced annually based on the strategy. Nevertheless, the initial prepared advertising is approximately $52000 each year which would be putting a strain on the business's resources leaving Osg Corporation Risk Hedging Against Transaction Exposures with an unfavorable net income if the expenditures are assigned to Case Study Help only.

The truth that Osg Corporation Risk Hedging Against Transaction Exposures has currently incurred a preliminary investment of $48000 in the form of capital expense and prototype development shows that the earnings from Case Study Help is not enough to carry out the danger of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more effective option particularly of it is impacting the sale of the business's income creating designs.



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