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Risk Management At Lehman Brothers 2007 2008 Case Study Help Checklist

Risk Management At Lehman Brothers 2007 2008 Case Study Help Checklist

Risk Management At Lehman Brothers 2007 2008 Case Study Solution
Risk Management At Lehman Brothers 2007 2008 Case Study Help
Risk Management At Lehman Brothers 2007 2008 Case Study Analysis



Analyses for Evaluating Risk Management At Lehman Brothers 2007 2008 decision to launch Case Study Solution


The following section focuses on the of marketing for Risk Management At Lehman Brothers 2007 2008 where the company's consumers, rivals and core competencies have actually examined in order to validate whether the choice to release Case Study Help under Risk Management At Lehman Brothers 2007 2008 brand name would be a feasible option or not. We have first of all looked at the kind of consumers that Risk Management At Lehman Brothers 2007 2008 handle while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the justification for not launching Case Study Help under Risk Management At Lehman Brothers 2007 2008 name.
Risk Management At Lehman Brothers 2007 2008 Case Study Solution

Customer Analysis

Risk Management At Lehman Brothers 2007 2008 clients can be segmented into 2 groups, final customers and commercial consumers. Both the groups use Risk Management At Lehman Brothers 2007 2008 high performance adhesives while the business is not only associated with the production of these adhesives but likewise markets them to these client groups. There are two types of products that are being sold to these possible markets; anaerobic adhesives and instant adhesives. We would be focusing on the consumers of immediate adhesives for this analysis considering that the market for the latter has a lower potential for Risk Management At Lehman Brothers 2007 2008 compared to that of immediate adhesives.

The overall market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both customer groups which have been identified earlier.If we take a look at a breakdown of Risk Management At Lehman Brothers 2007 2008 prospective market or customer groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself consumers, repair work and overhauling companies (MRO) and producers dealing in products made from leather, wood, plastic and metal. This diversity in customers recommends that Risk Management At Lehman Brothers 2007 2008 can target has various alternatives in terms of segmenting the marketplace for its brand-new product especially as each of these groups would be requiring the same kind of item with particular modifications in need, packaging or amount. The customer is not price sensitive or brand name mindful so launching a low priced dispenser under Risk Management At Lehman Brothers 2007 2008 name is not a recommended alternative.

Company Analysis

Risk Management At Lehman Brothers 2007 2008 is not simply a manufacturer of adhesives however delights in market leadership in the immediate adhesive market. The business has its own experienced and qualified sales force which includes value to sales by training the company's network of 250 distributors for assisting in the sale of adhesives. Risk Management At Lehman Brothers 2007 2008 believes in exclusive distribution as suggested by the reality that it has chosen to sell through 250 suppliers whereas there is t a network of 10000 distributors that can be explored for expanding reach by means of distributors. The company's reach is not limited to North America only as it also enjoys global sales. With 1400 outlets spread all throughout North America, Risk Management At Lehman Brothers 2007 2008 has its internal production plants rather than utilizing out-sourcing as the favored strategy.

Core skills are not limited to adhesive manufacturing just as Risk Management At Lehman Brothers 2007 2008 likewise concentrates on making adhesive dispensing devices to assist in the use of its items. This dual production technique gives Risk Management At Lehman Brothers 2007 2008 an edge over competitors considering that none of the competitors of dispensing equipment makes instantaneous adhesives. Furthermore, none of these rivals offers straight to the customer either and makes use of suppliers for reaching out to clients. While we are looking at the strengths of Risk Management At Lehman Brothers 2007 2008, it is crucial to highlight the business's weak points.

Although the business's sales personnel is skilled in training suppliers, the fact stays that the sales team is not trained in selling devices so there is a possibility of relying greatly on distributors when promoting adhesive equipment. It must likewise be noted that the distributors are revealing reluctance when it comes to selling devices that needs maintenance which increases the obstacles of offering devices under a particular brand name.

If we look at Risk Management At Lehman Brothers 2007 2008 product line in adhesive equipment especially, the business has actually products aimed at the high-end of the market. If Risk Management At Lehman Brothers 2007 2008 sells Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Offered the fact that Case Study Help is priced lower than Risk Management At Lehman Brothers 2007 2008 high-end line of product, sales cannibalization would certainly be affecting Risk Management At Lehman Brothers 2007 2008 sales income if the adhesive equipment is offered under the business's brand.

We can see sales cannibalization affecting Risk Management At Lehman Brothers 2007 2008 27A Pencil Applicator which is priced at $275. If Case Study Help is launched under the company's brand name, there is another possible threat which could reduce Risk Management At Lehman Brothers 2007 2008 revenue. The truth 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.

Furthermore, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or rate consciousness which gives us 2 additional factors for not releasing a low priced item under the company's brand name.

Competitor Analysis

The competitive environment of Risk Management At Lehman Brothers 2007 2008 would be studied via Porter's 5 forces analysis which would highlight the degree of rivalry 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 sectors with Risk Management At Lehman Brothers 2007 2008 delighting in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While market rivalry between these gamers could be called 'extreme' 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 numerous market segments which can be targeted as prospective specific niche markets even when introducing an adhesive. We can even point out the truth that sales cannibalization may be leading to market competition in the adhesive dispenser market while the market for instantaneous adhesives offers growth capacity.


Bargaining Power of Buyer: The Bargaining power of the buyer in this market is low particularly as the purchaser has low understanding about the product. While business like Risk Management At Lehman Brothers 2007 2008 have actually managed to train suppliers regarding adhesives, the final consumer is dependent on distributors. Approximately 72% of sales are made straight by makers and suppliers 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 players, it could be said that the provider enjoys a greater bargaining power compared to the buyer. Nevertheless, the truth stays that the provider does not have much impact over the buyer at this moment especially as the purchaser does disappoint brand name recognition or rate sensitivity. When it comes to the adhesive market while the purchaser and the maker do not have a major control over the actual sales, this suggests that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand commitment and the ease of entry shown by foreign Japanese rivals in the immediate adhesive market suggests that the market permits ease of entry. If we look at Risk Management At Lehman Brothers 2007 2008 in specific, the company has dual capabilities in terms of being a manufacturer of adhesive dispensers and instant adhesives. Possible hazards in equipment giving market are low which reveals the possibility of creating brand name awareness in not just instant adhesives however likewise in dispensing adhesives as none of the market gamers has actually handled to position itself in double capabilities.

Hazard of Substitutes: The threat of replacements in the instantaneous adhesive market is low while the dispenser market in particular has substitutes like Glumetic idea applicators, in-built applicators, pencil applicators and sophisticated consoles. The fact remains that if Risk Management At Lehman Brothers 2007 2008 presented Case Study Help, it would be indulging in sales cannibalization for its own items. (see appendix 1 for framework).


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

Risk Management At Lehman Brothers 2007 2008 Case Study Help


Despite the fact that our 3C analysis has actually provided numerous factors for not launching Case Study Help under Risk Management At Lehman Brothers 2007 2008 name, we have actually a recommended marketing mix for Case Study Help given listed below if Risk Management At Lehman Brothers 2007 2008 chooses to go on with the launch.

Product & Target Market: The target audience chosen for Case Study Help is 'Automobile services' for a variety of factors. There are currently 89257 establishments in this sector and a high usage of approximately 58900 lbs. is being utilized by 36.1 % of the marketplace. This market has an additional growth potential of 10.1% which may be a good enough specific niche market segment for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the truth that the Do-it-Yourself market can likewise be targeted if a drinkable low priced adhesive is being cost usage with SuperBonder. The item would be sold without the 'glumetic tip' and 'vari-drop' so that the customer can decide whether he wishes to opt for either of the two accessories or not.

Price: The recommended rate of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This rate would not consist of the cost of the 'vari suggestion' or the 'glumetic suggestion'. A cost below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle maintenance shop needs to purchase the product on his own. This would increase the possibility of affecting mechanics to buy the item for usage in their daily upkeep tasks.

Risk Management At Lehman Brothers 2007 2008 would just be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Risk Management At Lehman Brothers 2007 2008 for releasing Case Study Help.

Place: A distribution design where Risk Management At Lehman Brothers 2007 2008 straight sends the item to the local supplier and keeps a 10% drop shipment allowance for the distributor would be used by Risk Management At Lehman Brothers 2007 2008. Because the sales team is already participated in offering instant adhesives and they do not have knowledge in offering dispensers, involving them in the selling process would be pricey particularly as each sales call expenses roughly $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a favorable choice.

Promotion: Although a low promotional spending plan needs to have been appointed to Case Study Help however the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs incurred for production, the recommended advertising plan costing $51816 is advised for initially presenting the product in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle maintenance shops. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summed up in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Risk Management At Lehman Brothers 2007 2008 Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has been talked about for Case Study Help, the truth still stays that the item would not complement Risk Management At Lehman Brothers 2007 2008 product line. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be roughly $49377 if 250 systems of each model are produced per year based on the strategy. The initial prepared advertising is roughly $52000 per year which would be putting a pressure on the company's resources leaving Risk Management At Lehman Brothers 2007 2008 with a negative net earnings if the expenditures are designated to Case Study Help only.

The fact that Risk Management At Lehman Brothers 2007 2008 has actually currently sustained a preliminary investment of $48000 in the form of capital cost and prototype development shows that the earnings from Case Study Help is not enough to carry out the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low flexibility of need is not a more suitable alternative specifically of it is impacting the sale of the business's revenue producing models.



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