Western Technology Investment Case Study Help Checklist

Western Technology Investment Case Study Help Checklist

Western Technology Investment Case Study Solution
Western Technology Investment Case Study Help
Western Technology Investment Case Study Analysis

Analyses for Evaluating Western Technology Investment decision to launch Case Study Solution

The following area focuses on the of marketing for Western Technology Investment where the company's customers, competitors and core proficiencies have assessed in order to justify whether the decision to launch Case Study Help under Western Technology Investment trademark name would be a feasible option or not. We have actually firstly looked at the type of clients that Western Technology Investment deals in while an evaluation of the competitive environment and the business's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Western Technology Investment name.
Western Technology Investment Case Study Solution

Customer Analysis

Western Technology Investment consumers can be segmented into two groups, last consumers and commercial clients. Both the groups use Western Technology Investment high performance adhesives while the business is not only involved in the production of these adhesives however also markets them to these customer groups. There are 2 types of items that are being offered to these potential markets; instant adhesives and anaerobic adhesives. We would be focusing on the consumers of instant adhesives for this analysis because the market for the latter has a lower potential for Western Technology Investment compared to that of immediate adhesives.

The overall market for instantaneous adhesives is approximately 890,000 in the United States in 1978 which covers both client groups which have actually been recognized earlier.If we look at a breakdown of Western Technology Investment possible market or consumer groups, we can see that the company sells to OEMs (Original Devices Producers), Do-it-Yourself clients, repair work and overhauling business (MRO) and makers dealing in products made of leather, metal, wood and plastic. This variety in customers recommends that Western Technology Investment can target has different options in regards to segmenting the marketplace for its new product especially as each of these groups would be needing the same kind of product with particular changes in product packaging, amount or need. Nevertheless, the client is not price delicate or brand conscious so introducing a low priced dispenser under Western Technology Investment name is not a suggested alternative.

Company Analysis

Western Technology Investment is not simply a manufacturer of adhesives but delights in market management in the instant adhesive industry. The business has its own proficient and competent sales force which includes worth to sales by training the company's network of 250 suppliers for helping with the sale of adhesives.

Core skills are not limited to adhesive manufacturing only as Western Technology Investment also concentrates on making adhesive dispensing equipment to assist in the use of its items. This double production method offers Western Technology Investment an edge over competitors given that none of the rivals of giving devices makes instant adhesives. Furthermore, none of these rivals sells directly to the customer either and uses distributors for connecting to customers. While we are taking a look at the strengths of Western Technology Investment, it is important to highlight the business's weak points as well.

The company's sales personnel is competent in training suppliers, the truth remains that the sales group is not trained in selling equipment so there is a possibility of relying greatly on suppliers when promoting adhesive equipment. It ought to also be kept in mind that the distributors are showing reluctance when it comes to selling equipment that needs maintenance which increases the difficulties of selling devices under a specific brand name.

The business has products aimed at the high end of the market if we look at Western Technology Investment item line in adhesive equipment especially. The possibility of sales cannibalization exists if Western Technology Investment offers Case Study Help under the exact same portfolio. Offered the reality that Case Study Help is priced lower than Western Technology Investment high-end line of product, sales cannibalization would certainly be impacting Western Technology Investment sales income if the adhesive devices is offered under the company's trademark name.

We can see sales cannibalization impacting Western Technology Investment 27A Pencil Applicator which is priced at $275. There is another possible danger which might reduce Western Technology Investment income if Case Study Help is launched under the company's brand name. The reality that $175000 has been spent 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.

In addition, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or cost consciousness which offers us two additional factors for not introducing a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Western Technology Investment 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 potential due to the existence of fragmented sections with Western Technology Investment enjoying leadership and a combined market share of 75% with 2 other market players, Eastman and Permabond. While market rivalry between these players could be called 'intense' as the customer is not brand name mindful and each of these gamers has prominence in terms of market share, the truth still stays that the market is not saturated and still has a number of market segments which can be targeted as potential specific niche markets even when launching an adhesive. However, we can even mention the reality that sales cannibalization may be causing industry competition in the adhesive dispenser market while the market for immediate adhesives uses development capacity.

Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low particularly as the buyer has low understanding about the product. While business like Western Technology Investment have actually managed to train distributors relating to adhesives, the last customer depends on distributors. Roughly 72% of sales are made directly by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the fact that the adhesive market is controlled by 3 players, it could be stated that the supplier takes pleasure in a greater bargaining power compared to the buyer. The fact stays that the supplier does not have much influence over the purchaser at this point particularly as the purchaser does not show brand name acknowledgment or price sensitivity. This suggests that the supplier has the greater power when it concerns the adhesive market while the purchaser and the producer do not have a major 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 suggests that the market permits ease of entry. However, if we take a look at Western Technology Investment in particular, the business has dual capabilities in regards to being a producer of instant adhesives and adhesive dispensers. Prospective threats in equipment dispensing market are low which shows the possibility of producing brand name awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry players has handled to position itself in dual capabilities.

Threat of Substitutes: The threat of alternatives in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, in-built applicators, pencil applicators and advanced consoles. The truth remains that if Western Technology Investment presented 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

Western Technology Investment Case Study Help

Despite the fact that our 3C analysis has actually provided numerous factors for not releasing Case Study Help under Western Technology Investment name, we have actually a recommended marketing mix for Case Study Help offered listed below if Western Technology Investment chooses to go on with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Automobile services' for a number of reasons. There are presently 89257 facilities in this sector and a high usage of approximately 58900 pounds. is being used by 36.1 % of the marketplace. This market has an additional growth capacity of 10.1% which might be a good enough niche market sector for Case Study Help. Not only would a portable dispenser offer benefit to this particular market, the fact that the Do-it-Yourself market can likewise be targeted if a potable low priced adhesive is being sold for use with SuperBonder. The item would be offered without the 'glumetic pointer' and 'vari-drop' so that the consumer can decide whether he wishes to opt for either of the two devices or not.

Price: The suggested rate of Case Study Help has been kept at $175 to the end user whether it is offered through suppliers or via direct selling. This rate would not consist of the cost of the 'vari idea' or the 'glumetic idea'. A rate below $250 would not need approvals from the senior management in case a mechanic at an automobile upkeep store needs to purchase the product on his own. This would increase the possibility of affecting mechanics to acquire the product for usage in their day-to-day maintenance jobs.

Western Technology Investment would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross profitability and net success for Western Technology Investment for introducing Case Study Help.

Place: A circulation design where Western Technology Investment directly sends the item to the local distributor and keeps a 10% drop shipment allowance for the supplier would be used by Western Technology Investment. Because the sales group is currently taken part in selling instant adhesives and they do not have knowledge in selling dispensers, including them in the selling process would be expensive specifically as each sales call costs around $120. The suppliers are already offering dispensers so offering Case Study Help through them would be a beneficial option.

Promotion: Although a low marketing budget needs to have been appointed to Case Study Help but the fact that the dispenser is an innovation and it requires to be marketed well in order to cover the capital expenses sustained for production, the suggested marketing plan costing $51816 is recommended for at first introducing the item in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Recommended text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).

Limitations: Arguments for forgoing the launch Case Study Analysis
Western Technology Investment Case Study Analysis

Although a recommended plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the truth still stays that the product would not complement Western Technology Investment line of product. We take a look at appendix 2, we can see how the overall gross profitability for the two designs is expected to be around $49377 if 250 systems of each design are produced per year based on the plan. However, the initial planned marketing is around $52000 per year which would be putting a pressure on the business's resources leaving Western Technology Investment with a negative earnings if the expenses are assigned to Case Study Help only.

The reality that Western Technology Investment has actually already sustained a preliminary investment of $48000 in the form of capital expense and prototype development shows that the profits from Case Study Help is not enough to undertake the danger of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a more suitable choice particularly of it is affecting the sale of the company's income producing designs.