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Raffles Holdings Limited Valuation Of A Divestiture Case Study Help Checklist

Raffles Holdings Limited Valuation Of A Divestiture Case Study Help Checklist

Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution
Raffles Holdings Limited Valuation Of A Divestiture Case Study Help
Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis



Analyses for Evaluating Raffles Holdings Limited Valuation Of A Divestiture decision to launch Case Study Solution


The following section concentrates on the of marketing for Raffles Holdings Limited Valuation Of A Divestiture where the company's clients, rivals and core proficiencies have evaluated in order to validate whether the choice to introduce Case Study Help under Raffles Holdings Limited Valuation Of A Divestiture trademark name would be a practical choice or not. We have actually first of all looked at the type of consumers that Raffles Holdings Limited Valuation Of A Divestiture deals in while an examination of the competitive environment and the company's strengths and weaknesses follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Raffles Holdings Limited Valuation Of A Divestiture name.
Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution

Customer Analysis

Raffles Holdings Limited Valuation Of A Divestiture clients can be segmented into 2 groups, final customers and commercial clients. Both the groups use Raffles Holdings Limited Valuation Of A Divestiture high performance adhesives while the business is not only involved in the production of these adhesives but also markets them to these client groups. There are two kinds of items that are being offered to these prospective markets; anaerobic adhesives and instant adhesives. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower capacity for Raffles Holdings Limited Valuation Of A Divestiture compared to that of instantaneous adhesives.

The total market for instantaneous adhesives is roughly 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 Raffles Holdings Limited Valuation Of A Divestiture prospective market or consumer groups, we can see that the company sells to OEMs (Original Equipment Producers), Do-it-Yourself consumers, repair and upgrading business (MRO) and makers handling items made of leather, plastic, metal and wood. This diversity in consumers suggests that Raffles Holdings Limited Valuation Of A Divestiture can target has different choices in regards to segmenting the marketplace for its brand-new item especially as each of these groups would be requiring the exact same type of product with particular changes in product packaging, amount or need. The client is not rate sensitive or brand name conscious so introducing a low priced dispenser under Raffles Holdings Limited Valuation Of A Divestiture name is not a recommended alternative.

Company Analysis

Raffles Holdings Limited Valuation Of A Divestiture is not just a producer of adhesives but enjoys market management in the immediate adhesive market. The business has its own proficient and qualified sales force which adds worth to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not limited to adhesive production only as Raffles Holdings Limited Valuation Of A Divestiture also focuses on making adhesive dispensing devices to assist in making use of its items. This dual production technique provides Raffles Holdings Limited Valuation Of A Divestiture an edge over competitors because none of the competitors of giving equipment makes immediate adhesives. Furthermore, none of these competitors sells straight to the consumer either and utilizes distributors for connecting to consumers. While we are looking at the strengths of Raffles Holdings Limited Valuation Of A Divestiture, it is important to highlight the business's weak points.

Although the company'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 suppliers when promoting adhesive devices. It should also be noted that the distributors are showing unwillingness when it comes to offering devices that needs maintenance which increases the obstacles of offering equipment under a particular brand name.

If we look at Raffles Holdings Limited Valuation Of A Divestiture product line in adhesive equipment especially, the business has actually products aimed at the luxury of the marketplace. If Raffles Holdings Limited Valuation Of A Divestiture offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the reality that Case Study Help is priced lower than Raffles Holdings Limited Valuation Of A Divestiture high-end line of product, sales cannibalization would absolutely be affecting Raffles Holdings Limited Valuation Of A Divestiture sales revenue if the adhesive devices is sold under the company's brand name.

We can see sales cannibalization affecting Raffles Holdings Limited Valuation Of A Divestiture 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the business's brand name, there is another possible risk which could reduce Raffles Holdings Limited Valuation Of A Divestiture profits. The truth that $175000 has been invested in promoting SuperBonder suggests that it is not a good time for introducing 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 marketplace in general, the adhesives market does not show brand orientation or price consciousness which provides us two additional factors for not releasing a low priced item under the company's trademark name.

Competitor Analysis

The competitive environment of Raffles Holdings Limited Valuation Of A Divestiture would be studied by means of 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 segments with Raffles Holdings Limited Valuation Of A Divestiture delighting in management and a combined market share of 75% with two other industry players, Eastman and Permabond. While industry rivalry in between these players could be called 'intense' as the consumer is not brand conscious and each of these gamers has prominence in regards to market share, the truth still remains that the market is not filled and still has numerous market segments which can be targeted as potential niche markets even when releasing an adhesive. However, we can even point out the fact that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the market for instant adhesives offers growth capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low especially as the buyer has low understanding about the item. While companies like Raffles Holdings Limited Valuation Of A Divestiture have actually handled to train suppliers regarding adhesives, the final consumer is dependent on suppliers. Roughly 72% of sales are made straight by producers and suppliers for instantaneous adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the truth that the adhesive market is dominated by 3 gamers, it could be said that the provider enjoys a higher bargaining power compared to the buyer. The reality stays that the provider does not have much impact over the buyer at this point particularly as the purchaser does not reveal brand name recognition or rate level of sensitivity. This suggests that the supplier has the greater power when it concerns the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the instantaneous adhesive market indicates that the market permits ease of entry. However, if we take a look at Raffles Holdings Limited Valuation Of A Divestiture in particular, the business has double abilities in regards to being a manufacturer of instantaneous adhesives and adhesive dispensers. Possible threats in devices dispensing market are low which shows the possibility of creating brand name awareness in not just instantaneous adhesives but likewise in dispensing adhesives as none of the market gamers has managed to place itself in double abilities.

Risk of Substitutes: The danger of replacements in the instant adhesive industry is low while the dispenser market in particular has substitutes like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The reality stays that if Raffles Holdings Limited Valuation Of A Divestiture introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for framework).


4 P Analysis: A suggested Marketing Mix for Case Study Help

Raffles Holdings Limited Valuation Of A Divestiture Case Study Help


Despite the fact that our 3C analysis has actually provided different factors for not launching Case Study Help under Raffles Holdings Limited Valuation Of A Divestiture name, we have a suggested marketing mix for Case Study Help given listed below if Raffles Holdings Limited Valuation Of A Divestiture decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor car services' for a number of factors. This market has an extra development capacity of 10.1% which might be an excellent adequate specific niche market segment for Case Study Help. Not only would a portable dispenser deal benefit to this specific market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being sold for usage with SuperBonder.

Price: The recommended rate of Case Study Help has actually been kept at $175 to the end user whether it is sold through distributors or via direct selling. This rate would not include the expense of the 'vari suggestion' or the 'glumetic idea'. A price listed below $250 would not need approvals from the senior management in case a mechanic at a motor vehicle maintenance store requires to acquire the product on his own. This would increase the possibility of affecting mechanics to buy the product for usage in their everyday upkeep tasks.

Raffles Holdings Limited Valuation Of A Divestiture would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Raffles Holdings Limited Valuation Of A Divestiture for launching Case Study Help.

Place: A distribution model where Raffles Holdings Limited Valuation Of A Divestiture directly sends out the product to the local supplier and keeps a 10% drop shipment allowance for the supplier would be used by Raffles Holdings Limited Valuation Of A Divestiture. Considering that the sales team is already engaged in selling immediate adhesives and they do not have proficiency in offering dispensers, including them in the selling procedure would be costly specifically as each sales call expenses around $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: Although a low promotional budget ought to have been assigned to Case Study Help but the reality that the dispenser is an innovation and it requires to be marketed well in order to cover the capital costs sustained for production, the recommended advertising plan costing $51816 is recommended for at first presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in lorry maintenance shops. (Suggested text for the advertisement is shown in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis

Although a suggested strategy in the form of a marketing mix has been gone over for Case Study Help, the fact still remains that the product would not complement Raffles Holdings Limited Valuation Of A Divestiture product line. We take a look at appendix 2, we can see how the overall gross profitability for the two models is expected to be roughly $49377 if 250 systems of each model are made each year according to the plan. However, the initial planned marketing is approximately $52000 each year which would be putting a strain on the business's resources leaving Raffles Holdings Limited Valuation Of A Divestiture with a negative net income if the expenditures are allocated to Case Study Help just.

The truth that Raffles Holdings Limited Valuation Of A Divestiture has actually currently incurred an initial investment of $48000 in the form of capital expense and prototype development suggests that the revenue from Case Study Help is inadequate to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low elasticity of need is not a more effective choice especially of it is affecting the sale of the company's revenue creating designs.



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