Texas High Speed Rail Corp Case Study Help Checklist

Texas High Speed Rail Corp Case Study Help Checklist

Texas High Speed Rail Corp Case Study Solution
Texas High Speed Rail Corp Case Study Help
Texas High Speed Rail Corp Case Study Analysis

Analyses for Evaluating Texas High Speed Rail Corp decision to launch Case Study Solution

The following section concentrates on the of marketing for Texas High Speed Rail Corp where the company's customers, rivals and core competencies have assessed in order to validate whether the choice to launch Case Study Help under Texas High Speed Rail Corp brand would be a practical option or not. We have to start with looked at the type of clients that Texas High Speed Rail Corp deals in while an assessment of the competitive environment and the business's weak points and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Texas High Speed Rail Corp name.
Texas High Speed Rail Corp Case Study Solution

Customer Analysis

Both the groups use Texas High Speed Rail Corp high performance adhesives while the company is not just included in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the consumers of immediate adhesives for this analysis given that the market for the latter has a lower capacity for Texas High Speed Rail Corp compared to that of instantaneous adhesives.

The total market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both consumer groups which have actually been determined earlier.If we look at a breakdown of Texas High Speed Rail Corp prospective market or consumer groups, we can see that the business sells to OEMs (Initial Devices Makers), Do-it-Yourself customers, repair and revamping companies (MRO) and manufacturers handling items made from leather, plastic, metal and wood. This variety in customers recommends that Texas High Speed Rail Corp can target has numerous alternatives in terms of segmenting the market for its brand-new item specifically as each of these groups would be needing the same kind of item with respective changes in packaging, need or amount. However, the customer is not rate sensitive or brand conscious so launching a low priced dispenser under Texas High Speed Rail Corp name is not a recommended option.

Company Analysis

Texas High Speed Rail Corp is not just a maker of adhesives but enjoys market management in the instantaneous adhesive industry. 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 skills are not restricted to adhesive production just as Texas High Speed Rail Corp also specializes in making adhesive dispensing equipment to help with using its items. This dual production technique offers Texas High Speed Rail Corp an edge over competitors since none of the competitors of dispensing devices makes instantaneous adhesives. Additionally, none of these rivals offers directly to the consumer either and uses suppliers for connecting to clients. While we are taking a look at the strengths of Texas High Speed Rail Corp, it is necessary to highlight the business's weaknesses also.

Although the company's sales staff is proficient in training distributors, the reality remains that the sales group is not trained in selling equipment so there is a possibility of relying heavily on distributors when promoting adhesive devices. It must also be kept in mind that the distributors are showing hesitation when it comes to selling devices that needs servicing which increases the challenges of selling devices under a specific brand name.

The business has actually products aimed at the high end of the market if we look at Texas High Speed Rail Corp product line in adhesive equipment especially. The possibility of sales cannibalization exists if Texas High Speed Rail Corp offers Case Study Help under the exact same portfolio. Given the fact that Case Study Help is priced lower than Texas High Speed Rail Corp high-end line of product, sales cannibalization would definitely be impacting Texas High Speed Rail Corp sales revenue if the adhesive devices is sold under the company's brand name.

We can see sales cannibalization impacting Texas High Speed Rail Corp 27A Pencil Applicator which is priced at $275. There is another possible hazard which might lower Texas High Speed Rail Corp revenue if Case Study Help is released under the business's brand name. The fact that $175000 has been invested in promoting SuperBonder recommends that it is not a good time for introducing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.

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

Competitor Analysis

The competitive environment of Texas High Speed Rail Corp would be studied via Porter's five 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 existence of fragmented segments with Texas High Speed Rail Corp enjoying management and a combined market share of 75% with 2 other industry gamers, Eastman and Permabond. While market rivalry in between these players could be called 'intense' as the customer is not brand conscious and each of these gamers has prominence in terms of market share, the fact still remains that the industry is not saturated and still has several market segments which can be targeted as prospective niche markets even when introducing an adhesive. We can even point out the fact that sales cannibalization might be leading to industry rivalry in the adhesive dispenser market while the market for immediate adhesives uses growth potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the buyer has low understanding about the product. While companies like Texas High Speed Rail Corp have actually managed to train suppliers relating to adhesives, the last customer is dependent on distributors. Approximately 72% of sales are made directly by makers and suppliers for immediate adhesives so the purchaser has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is dominated by 3 gamers, it could be said that the provider takes pleasure in a greater bargaining power compared to the purchaser. However, the fact stays that the supplier does not have much impact over the purchaser at this moment particularly as the buyer does disappoint brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the manufacturer and the purchaser do not have a significant control over the real sales, this suggests that the distributor has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market shows that the marketplace permits ease of entry. However, if we look at Texas High Speed Rail Corp in particular, the business has dual abilities in regards to being a producer of instant adhesives and adhesive dispensers. Prospective risks in equipment dispensing industry are low which shows the possibility of producing brand name awareness in not just immediate adhesives however also in giving adhesives as none of the market gamers has actually handled to position itself in double capabilities.

Hazard of Substitutes: The risk of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Texas High Speed Rail Corp introduced Case Study Help, it would be delighting in sales cannibalization for its own products. (see appendix 1 for structure).

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

Texas High Speed Rail Corp Case Study Help

Despite the fact that our 3C analysis has offered numerous reasons for not releasing Case Study Help under Texas High Speed Rail Corp name, we have a suggested marketing mix for Case Study Help given listed below if Texas High Speed Rail Corp decides to go ahead with the launch.

Product & Target Market: The target market chosen for Case Study Help is 'Motor lorry services' for a number of reasons. This market has an extra growth capacity of 10.1% which may be a good sufficient niche market section for Case Study Help. Not only would a portable dispenser deal convenience to this particular market, the reality that the Diy market can likewise be targeted if a drinkable low priced adhesive is being offered for use with SuperBonder.

Price: The suggested cost of Case Study Help has been kept at $175 to the end user whether it is sold through suppliers or via direct selling. A rate listed below $250 would not need approvals from the senior management in case a mechanic at a motor automobile upkeep store needs to acquire the item on his own.

Texas High Speed Rail Corp would only be getting $157 per unit as displayed in appendix 2 which gives a breakdown of gross success and net profitability for Texas High Speed Rail Corp for releasing Case Study Help.

Place: A distribution model where Texas High Speed Rail Corp directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Texas High Speed Rail Corp. Considering that the sales group is currently taken part in selling instantaneous adhesives and they do not have knowledge in selling dispensers, involving them in the selling process would be costly particularly as each sales call expenses approximately $120. The distributors are already selling dispensers so selling Case Study Help through them would be a favorable alternative.

Promotion: A low promotional budget plan should 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 suggested advertising strategy costing $51816 is advised for at first introducing the item in the market. The prepared advertisements in magazines would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is shown in appendix 3 while the 4Ps are summed up in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Texas High Speed Rail Corp Case Study Analysis

A recommended plan of action in the kind of a marketing mix has been talked about for Case Study Help, the reality still remains that the product would not complement Texas High Speed Rail Corp product line. We have a look at appendix 2, we can see how the overall gross profitability for the two models is anticipated to be approximately $49377 if 250 systems of each model are made per year according to the plan. The preliminary planned advertising is roughly $52000 per year which would be putting a pressure on the business's resources leaving Texas High Speed Rail Corp with a negative net income if the expenses are designated to Case Study Help only.

The reality that Texas High Speed Rail Corp has currently incurred an initial financial investment of $48000 in the form of capital expense and model development indicates that the profits from Case Study Help is inadequate to carry out the risk of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of demand is not a preferable choice particularly of it is affecting the sale of the company's income generating designs.