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Quorum Health Group Inc Case Study Help Checklist

Quorum Health Group Inc Case Study Help Checklist

Quorum Health Group Inc Case Study Solution
Quorum Health Group Inc Case Study Help
Quorum Health Group Inc Case Study Analysis



Analyses for Evaluating Quorum Health Group Inc decision to launch Case Study Solution


The following section focuses on the of marketing for Quorum Health Group Inc where the company's clients, rivals and core proficiencies have actually assessed in order to validate whether the decision to launch Case Study Help under Quorum Health Group Inc trademark name would be a possible alternative or not. We have actually to start with looked at the type of clients that Quorum Health Group Inc 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 Quorum Health Group Inc name.
Quorum Health Group Inc Case Study Solution

Customer Analysis

Both the groups utilize Quorum Health Group Inc high efficiency adhesives while the company is not only included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the customers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Quorum Health Group Inc compared to that of instant adhesives.

The total market for instant adhesives is approximately 890,000 in the US in 1978 which covers both consumer groups which have been determined earlier.If we take a look at a breakdown of Quorum Health Group Inc prospective market or consumer groups, we can see that the company sells to OEMs (Original Equipment Producers), Do-it-Yourself clients, repair and overhauling companies (MRO) and makers handling items made from leather, plastic, wood and metal. This diversity in clients recommends that Quorum Health Group Inc can target has different alternatives in terms of segmenting the marketplace for its new item especially as each of these groups would be needing the very same type of product with respective modifications in quantity, need or packaging. The client is not price delicate or brand conscious so introducing a low priced dispenser under Quorum Health Group Inc name is not a recommended option.

Company Analysis

Quorum Health Group Inc is not simply a manufacturer of adhesives but takes pleasure in market leadership in the instantaneous adhesive market. The company has its own skilled and competent sales force which includes value to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.

Core competences are not restricted to adhesive manufacturing only as Quorum Health Group Inc also focuses on making adhesive dispensing equipment to assist in the use of its products. This double production method provides Quorum Health Group Inc an edge over rivals considering that none of the competitors of dispensing equipment makes instantaneous adhesives. Additionally, none of these competitors offers directly to the customer either and makes use of suppliers for connecting to customers. While we are taking a look at the strengths of Quorum Health Group Inc, it is important to highlight the business's weaknesses also.

Although the business's sales personnel is competent in training suppliers, the fact stays that the sales team is not trained in selling equipment so there is a possibility of relying greatly on distributors when promoting adhesive devices. However, it must likewise be kept in mind that the distributors are revealing hesitation when it comes to selling equipment that needs maintenance which increases the difficulties of offering devices under a specific brand name.

The company has products intended at the high end of the market if we look at Quorum Health Group Inc product line in adhesive devices especially. If Quorum Health Group Inc 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 Quorum Health Group Inc high-end product line, sales cannibalization would definitely be affecting Quorum Health Group Inc sales profits if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization impacting Quorum Health Group Inc 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible danger which might lower Quorum Health Group Inc income. The truth that $175000 has been spent in promoting SuperBonder suggests that it is not a good time for launching 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 look at the marketplace in general, the adhesives market does disappoint brand orientation or rate awareness which offers us two extra factors for not launching a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Quorum Health Group Inc would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.


Degree of Rivalry:

Currently we can see that the adhesive market has a high development capacity due to the presence of fragmented sections with Quorum Health Group Inc delighting in management and a combined market share of 75% with two other market gamers, Eastman and Permabond. While market competition in between these players could be called 'intense' as the customer is not brand name mindful and each of these gamers has prominence in regards to market share, the reality still remains that the market is not saturated and still has several market segments which can be targeted as possible niche markets even when launching an adhesive. However, we can even point out the reality that sales cannibalization may be resulting in industry competition in the adhesive dispenser market while the marketplace for instantaneous adhesives provides 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 item. While business like Quorum Health Group Inc have actually managed to train suppliers concerning adhesives, the last customer depends on distributors. Around 72% of sales are made directly by manufacturers and distributors for immediate 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 stated that the provider enjoys a greater bargaining power compared to the purchaser. However, the truth remains that the supplier does not have much impact over the purchaser at this point specifically as the buyer does not show brand name acknowledgment or price level of sensitivity. This suggests that the distributor has the higher power when it pertains to the adhesive market while the purchaser and the producer do not have a significant control over the actual sales.

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 immediate adhesive market indicates that the marketplace permits ease of entry. Nevertheless, if we take a look at Quorum Health Group Inc in particular, the company has dual capabilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential dangers in devices dispensing market are low which shows the possibility of producing brand awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has actually managed to place itself in double capabilities.

Danger of Substitutes: The threat of substitutes in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and sophisticated consoles. The truth remains that if Quorum Health Group Inc 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

Quorum Health Group Inc Case Study Help


Despite the fact that our 3C analysis has actually provided various reasons for not launching Case Study Help under Quorum Health Group Inc name, we have a recommended marketing mix for Case Study Help offered below if Quorum Health Group Inc decides to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an additional development potential of 10.1% which might be a great enough niche market segment for Case Study Help. Not just would a portable dispenser deal convenience to this specific market, the reality that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. This rate would not include the cost of the 'vari tip' or the 'glumetic idea'. A cost below $250 would not need approvals from the senior management in case a mechanic at an automobile maintenance store needs to purchase the item on his own. This would increase the possibility of influencing mechanics to buy the product for use in their everyday maintenance jobs.

Quorum Health Group Inc would just be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Quorum Health Group Inc for introducing Case Study Help.

Place: A circulation model where Quorum Health Group Inc directly sends out the item to the regional supplier and keeps a 10% drop delivery allowance for the supplier would be utilized by Quorum Health Group Inc. Because the sales group is already engaged in selling immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling process would be expensive particularly as each sales call expenses roughly $120. The suppliers are already selling dispensers so offering Case Study Help through them would be a favorable option.

Promotion: A low promotional budget plan must have been assigned to Case Study Help but 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 recommended marketing plan costing $51816 is recommended for initially introducing the item in the market. The planned ads in magazines would be targeted at mechanics in car upkeep shops. (Recommended text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Quorum Health Group Inc Case Study Analysis

Although a suggested strategy in the form of a marketing mix has actually been gone over for Case Study Help, the fact still stays that the item would not complement Quorum Health Group Inc product line. We take a look at appendix 2, we can see how the total gross profitability for the two designs is expected to be around $49377 if 250 systems of each design are made per year according to the strategy. However, the preliminary planned advertising is roughly $52000 per year which would be putting a strain on the company's resources leaving Quorum Health Group Inc with an unfavorable net income if the expenditures are allocated to Case Study Help just.

The fact that Quorum Health Group Inc has actually already incurred a preliminary investment of $48000 in the form of capital expense and model development indicates that the earnings from Case Study Help is not enough to undertake the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of need is not a more effective alternative especially of it is affecting the sale of the business's profits generating designs.


 

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