WhatsApp 
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
The following area focuses on the of marketing for Osg Corporation Risk Hedging Against Transaction Exposures where the business's customers, competitors and core competencies have actually assessed in order to validate whether the choice to introduce Case Study Help under Osg Corporation Risk Hedging Against Transaction Exposures brand name would be a possible choice or not. We have actually first of all looked at the kind of consumers that Osg Corporation Risk Hedging Against Transaction Exposures handle while an examination of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not introducing Case Study Help under Osg Corporation Risk Hedging Against Transaction Exposures name.
Both the groups utilize Osg Corporation Risk Hedging Against Transaction Exposures high performance 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 customers of immediate adhesives for this analysis since the market for the latter has a lower capacity for Osg Corporation Risk Hedging Against Transaction Exposures compared to that of instant adhesives.
The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we take a look at a breakdown of Osg Corporation Risk Hedging Against Transaction Exposures possible market or consumer groups, we can see that the company sells to OEMs (Initial Devices Producers), Do-it-Yourself clients, repair and revamping companies (MRO) and manufacturers handling items made from leather, metal, plastic and wood. This diversity in customers recommends that Osg Corporation Risk Hedging Against Transaction Exposures can target has various choices in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the same type of product with respective changes in demand, quantity or product packaging. Nevertheless, the consumer is not rate delicate or brand name mindful so releasing a low priced dispenser under Osg Corporation Risk Hedging Against Transaction Exposures name is not an advised alternative.
Osg Corporation Risk Hedging Against Transaction Exposures is not simply a producer of adhesives however takes pleasure in market leadership in the immediate adhesive market. The business has its own knowledgeable and certified sales force which adds value to sales by training the company's network of 250 distributors for helping with the sale of adhesives.
Core proficiencies are not restricted to adhesive production only as Osg Corporation Risk Hedging Against Transaction Exposures likewise focuses on making adhesive dispensing devices to assist in making use of its items. This double production method offers Osg Corporation Risk Hedging Against Transaction Exposures an edge over rivals because none of the competitors of giving devices makes instantaneous adhesives. Additionally, none of these rivals sells straight to the customer either and utilizes suppliers for reaching out to clients. While we are looking at the strengths of Osg Corporation Risk Hedging Against Transaction Exposures, it is essential to highlight the business's weaknesses.
The business's sales staff is proficient in training distributors, the fact remains that the sales team is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. It ought to also be kept in mind that the distributors are showing hesitation when it comes to selling equipment that requires servicing which increases the obstacles of selling devices under a specific brand name.
The business has actually products intended at the high end of the market if we look at Osg Corporation Risk Hedging Against Transaction Exposures product line in adhesive equipment particularly. The possibility of sales cannibalization exists if Osg Corporation Risk Hedging Against Transaction Exposures offers Case Study Help under the same portfolio. Provided the truth that Case Study Help is priced lower than Osg Corporation Risk Hedging Against Transaction Exposures high-end product line, sales cannibalization would certainly be affecting Osg Corporation Risk Hedging Against Transaction Exposures sales profits if the adhesive equipment is offered under the business's trademark name.
We can see sales cannibalization impacting Osg Corporation Risk Hedging Against Transaction Exposures 27A Pencil Applicator which is priced at $275. There is another possible danger which might lower Osg Corporation Risk Hedging Against Transaction Exposures revenue if Case Study Help is launched under the business's brand name. The fact that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instant adhesive.
Furthermore, if we look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which provides us 2 extra factors for not launching a low priced item under the business's trademark name.
The competitive environment of Osg Corporation Risk Hedging Against Transaction Exposures would be studied through Porter's 5 forces analysis which would highlight the degree of rivalry in the market.
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 managed to train suppliers concerning adhesives, the final customer depends on distributors. Roughly 72% of sales are made directly by producers and distributors for immediate adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the reality that the adhesive market is dominated by 3 gamers, it could be stated that the provider enjoys a higher bargaining power compared to the purchaser. The truth remains that the supplier does not have much influence over the purchaser at this point particularly as the buyer does not reveal brand name acknowledgment or price sensitivity. When it comes to the adhesive market while the buyer and the maker do not have a significant control over the actual sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace enables ease of entry. If we look at Osg Corporation Risk Hedging Against Transaction Exposures in particular, the company has double capabilities in terms of being a manufacturer of instantaneous adhesives and adhesive dispensers. Prospective threats in devices dispensing industry are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in dispensing adhesives as none of the market players has actually managed to position itself in dual abilities.
Hazard of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has alternatives like Glumetic tip applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Osg Corporation Risk Hedging Against Transaction Exposures introduced Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).
Despite the fact that our 3C analysis has actually provided various reasons for not launching Case Study Help under Osg Corporation Risk Hedging Against Transaction Exposures name, we have a suggested marketing mix for Case Study Help given below if Osg Corporation Risk Hedging Against Transaction Exposures chooses to proceed 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 section and a high use of approximately 58900 pounds. is being utilized by 36.1 % of the market. This market has an additional 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 deal convenience to this specific 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 sold without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wants to opt for either of the two devices or not.
Price: The recommended cost of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or through direct selling. This rate would not consist of the cost of the 'vari pointer' or the 'glumetic pointer'. A price below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store needs to purchase the item on his own. This would increase the possibility of affecting mechanics to buy the item for use in their day-to-day maintenance jobs.
Osg Corporation Risk Hedging Against Transaction Exposures would only be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net success for Osg Corporation Risk Hedging Against Transaction Exposures for releasing Case Study Help.
Place: A distribution model where Osg Corporation Risk Hedging Against Transaction Exposures straight sends the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be utilized by Osg Corporation Risk Hedging Against Transaction Exposures. Since the sales team is currently participated in offering immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be costly particularly as each sales call costs around $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: Although a low marketing spending plan should have been assigned to Case Study Help however the fact that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses sustained for production, the recommended advertising plan costing $51816 is recommended for initially introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle upkeep stores. (Recommended text for the advertisement is shown in appendix 3 while the 4Ps are summarized in appendix 4).
