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Policy Management Systems Corp The Financial Reporting Crisis Case Study Solution
Policy Management Systems Corp The Financial Reporting Crisis Case Study Help
Policy Management Systems Corp The Financial Reporting Crisis Case Study Analysis
The following area concentrates on the of marketing for Policy Management Systems Corp The Financial Reporting Crisis where the company's consumers, competitors and core competencies have evaluated in order to justify whether the choice to release Case Study Help under Policy Management Systems Corp The Financial Reporting Crisis brand would be a feasible alternative or not. We have actually firstly looked at the type of customers that Policy Management Systems Corp The Financial Reporting Crisis 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 releasing Case Study Help under Policy Management Systems Corp The Financial Reporting Crisis name.
Both the groups use Policy Management Systems Corp The Financial Reporting Crisis high efficiency adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of instant adhesives for this analysis because the market for the latter has a lower potential for Policy Management Systems Corp The Financial Reporting Crisis compared to that of immediate adhesives.
The overall market for instant adhesives is around 890,000 in the United States in 1978 which covers both client groups which have been recognized earlier.If we look at a breakdown of Policy Management Systems Corp The Financial Reporting Crisis possible market or client groups, we can see that the company sells to OEMs (Original Equipment Makers), Do-it-Yourself clients, repair work and upgrading business (MRO) and makers dealing in items made from leather, wood, plastic and metal. This diversity in customers recommends that Policy Management Systems Corp The Financial Reporting Crisis can target has various choices in terms of segmenting the marketplace for its new item particularly as each of these groups would be requiring the same type of product with particular changes in packaging, amount or need. The consumer is not rate delicate or brand name mindful so launching a low priced dispenser under Policy Management Systems Corp The Financial Reporting Crisis name is not a suggested choice.
Policy Management Systems Corp The Financial Reporting Crisis is not just a producer of adhesives but enjoys market management in the immediate adhesive industry. The business has its own proficient and certified sales force which adds worth to sales by training the business's network of 250 suppliers for helping with the sale of adhesives. Policy Management Systems Corp The Financial Reporting Crisis believes in special distribution as shown by the truth that it has picked to offer through 250 suppliers whereas there is t a network of 10000 distributors that can be checked out for expanding reach through suppliers. The company's reach is not restricted to North America only as it likewise delights in worldwide sales. With 1400 outlets spread out all across The United States and Canada, Policy Management Systems Corp The Financial Reporting Crisis has its internal production plants rather than using out-sourcing as the favored strategy.
Core competences are not restricted to adhesive production only as Policy Management Systems Corp The Financial Reporting Crisis also focuses on making adhesive giving equipment to facilitate using its items. This double production technique gives Policy Management Systems Corp The Financial Reporting Crisis an edge over competitors because none of the competitors of giving devices makes instant adhesives. Additionally, none of these rivals offers directly to the customer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Policy Management Systems Corp The Financial Reporting Crisis, it is important to highlight the business's weaknesses.
Although the company's sales personnel is skilled in training suppliers, the truth stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive devices. Nevertheless, it should also be noted that the distributors are revealing unwillingness when it concerns offering devices that requires maintenance which increases the obstacles of offering devices under a particular trademark name.
If we take a look at Policy Management Systems Corp The Financial Reporting Crisis line of product in adhesive devices especially, the company has items aimed at the high end of the market. If Policy Management Systems Corp The Financial Reporting Crisis sells Case Study Help under the same portfolio, the possibility of sales cannibalization exists. Provided the truth that Case Study Help is priced lower than Policy Management Systems Corp The Financial Reporting Crisis high-end line of product, sales cannibalization would definitely be impacting Policy Management Systems Corp The Financial Reporting Crisis sales revenue if the adhesive devices is sold under the company's brand.
We can see sales cannibalization affecting Policy Management Systems Corp The Financial Reporting Crisis 27A Pencil Applicator which is priced at $275. There is another possible danger which could lower Policy Management Systems Corp The Financial Reporting Crisis earnings if Case Study Help is introduced under the business's trademark name. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a great time for launching a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
In addition, if we take a look at the marketplace in general, the adhesives market does not show brand orientation or price consciousness which offers us two extra reasons for not introducing a low priced product under the business's brand.
The competitive environment of Policy Management Systems Corp The Financial Reporting Crisis would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the purchaser has low understanding about the item. While companies like Policy Management Systems Corp The Financial Reporting Crisis have actually managed to train suppliers relating to adhesives, the final consumer is dependent on suppliers. Around 72% of sales are made directly by makers and suppliers for instant adhesives so the purchaser has a low bargaining power.
Bargaining Power of Supplier: Given the fact that the adhesive market is dominated by 3 players, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. Nevertheless, the fact remains that the provider does not have much influence over the buyer at this moment particularly as the purchaser does disappoint brand recognition or rate sensitivity. This shows that the supplier has the greater power when it comes to the adhesive market while the buyer and the maker do not have a major control over the actual sales.
Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry revealed by foreign Japanese competitors in the instantaneous adhesive market shows that the marketplace allows ease of entry. However, if we take a look at Policy Management Systems Corp The Financial Reporting Crisis in particular, the company has dual capabilities in regards to being a producer of adhesive dispensers and instantaneous adhesives. Possible risks in equipment giving market are low which shows the possibility of developing brand awareness in not only instant adhesives but likewise in giving adhesives as none of the industry players has actually managed to position itself in dual abilities.
Danger of Substitutes: The risk of alternatives in the instantaneous adhesive market is low while the dispenser market in particular has alternatives like Glumetic pointer applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if Policy Management Systems Corp The Financial Reporting Crisis introduced Case Study Help, it would be indulging in sales cannibalization for its own products. (see appendix 1 for structure).
Despite the fact that our 3C analysis has actually offered different factors for not launching Case Study Help under Policy Management Systems Corp The Financial Reporting Crisis name, we have a suggested marketing mix for Case Study Help given listed below if Policy Management Systems Corp The Financial Reporting Crisis chooses to go ahead with the launch.
Product & Target Market: The target market chosen for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra development potential of 10.1% which might be an excellent adequate 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 also be targeted if a drinkable low priced adhesive is being offered for usage with SuperBonder.
Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This price would not consist of the cost of the 'vari tip' or the 'glumetic suggestion'. A cost listed below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance shop requires to acquire the product on his own. This would increase the possibility of influencing mechanics to purchase the item for usage in their day-to-day upkeep jobs.
Policy Management Systems Corp The Financial Reporting Crisis would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net profitability for Policy Management Systems Corp The Financial Reporting Crisis for introducing Case Study Help.
Place: A distribution design where Policy Management Systems Corp The Financial Reporting Crisis directly sends out the product to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be used by Policy Management Systems Corp The Financial Reporting Crisis. Since the sales group is currently engaged in selling instant adhesives and they do not have know-how in selling dispensers, involving them in the selling process would be expensive especially as each sales call costs approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget needs to have been appointed to Case Study Help however the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended advertising plan costing $51816 is recommended for at first presenting the product in the market. The planned ads in publications would be targeted at mechanics in automobile upkeep stores. (Recommended text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).
