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Western Technology Investment Case Study Solution
Western Technology Investment Case Study Help
Western Technology Investment Case Study Analysis
The following section concentrates on the of marketing for Western Technology Investment where the business's clients, rivals and core competencies have actually evaluated in order to justify whether the decision to introduce Case Study Help under Western Technology Investment brand would be a possible option or not. We have to start with looked at the kind of customers that Western Technology Investment deals in while an assessment of the competitive environment and the company's weaknesses and strengths follows. Embedded in the 3C analysis is the reason for not releasing Case Study Help under Western Technology Investment name.
Western Technology Investment clients can be segmented into two groups, last consumers and commercial clients. Both the groups use Western Technology Investment high performance adhesives while the company is not only associated with the production of these adhesives however likewise markets them to these consumer groups. There are two types of products that are being offered to these potential markets; anaerobic adhesives and immediate adhesives. We would be focusing on the consumers of instantaneous adhesives for this analysis given that the market for the latter has a lower capacity for Western Technology Investment compared to that of instantaneous adhesives.
The overall market for instantaneous adhesives is around 890,000 in the United States in 1978 which covers both customer groups which have actually been identified earlier.If we look at a breakdown of Western Technology Investment potential market or client groups, we can see that the company offers to OEMs (Original Devices Manufacturers), Do-it-Yourself consumers, repair and revamping companies (MRO) and producers dealing in items made of leather, wood, plastic and metal. This diversity in customers suggests that Western Technology Investment can target has different choices in regards to segmenting the market for its new item particularly as each of these groups would be needing the exact same kind of item with particular modifications in product packaging, amount or need. Nevertheless, the customer is not cost sensitive or brand name mindful so releasing a low priced dispenser under Western Technology Investment name is not a recommended alternative.
Western Technology Investment is not just a manufacturer of adhesives however enjoys market management in the immediate adhesive market. The company has its own skilled and competent sales force which adds value to sales by training the business's network of 250 suppliers for facilitating the sale of adhesives. Western Technology Investment believes in unique distribution as shown by the truth that it has picked to sell through 250 suppliers whereas there is t a network of 10000 suppliers that can be checked out for expanding reach through suppliers. The business's reach is not restricted to The United States and Canada only as it likewise delights in global sales. With 1400 outlets spread out all throughout The United States and Canada, Western Technology Investment has its in-house production plants instead of using out-sourcing as the favored method.
Core proficiencies are not restricted to adhesive production just as Western Technology Investment also focuses on making adhesive giving equipment to help with using its products. This dual production method offers Western Technology Investment an edge over competitors given that none of the competitors of dispensing equipment makes immediate adhesives. Additionally, none of these competitors sells straight to the customer either and utilizes suppliers for connecting to clients. While we are taking a look at the strengths of Western Technology Investment, it is essential to highlight the business's weaknesses too.
The business's sales staff is knowledgeable in training suppliers, the truth remains that the sales group is not trained in offering devices so there is a possibility of relying greatly on suppliers when promoting adhesive devices. Nevertheless, it should also be noted that the distributors are revealing unwillingness when it comes to offering devices that needs servicing which increases the challenges of selling equipment under a specific brand.
The business has products intended at the high end of the market if we look at Western Technology Investment item line in adhesive devices especially. The possibility of sales cannibalization exists if Western Technology Investment sells Case Study Help under the very same portfolio. Provided the truth that Case Study Help is priced lower than Western Technology Investment high-end product line, sales cannibalization would absolutely be affecting Western Technology Investment sales income if the adhesive devices is offered under the business's brand.
We can see sales cannibalization affecting Western Technology Investment 27A Pencil Applicator which is priced at $275. There is another possible risk which could lower Western Technology Investment income if Case Study Help is launched under the company's brand. The reality that $175000 has been spent in promoting SuperBonder recommends that it is not a good time for launching a dispenser which can highlight the reality that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the immediate adhesive.
Furthermore, if we take a look at the market in general, the adhesives market does not show brand name orientation or price awareness which provides us 2 additional factors for not releasing a low priced product under the company's brand.
The competitive environment of Western Technology Investment would be studied through Porter's five forces analysis which would highlight the degree of competition in the market.
Bargaining Power of Buyer: The Bargaining power of the buyer in this industry is low specifically as the purchaser has low understanding about the product. While companies like Western Technology Investment have actually managed to train suppliers regarding adhesives, the final customer depends on distributors. Around 72% of sales are made straight by producers and distributors for instantaneous adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Offered the reality that the adhesive market is dominated by three gamers, it could be stated that the supplier delights in a greater bargaining power compared to the purchaser. The fact stays that the provider does not have much impact over the purchaser at this point especially as the buyer does not show brand recognition or cost sensitivity. This indicates that the distributor has the higher power when it comes to the adhesive market while the purchaser and the maker do not have a significant control over the actual sales.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry shown by foreign Japanese rivals in the instant adhesive market shows that the marketplace allows ease of entry. Nevertheless, if we take a look at Western Technology Investment in particular, the business has dual capabilities in terms of being a maker of adhesive dispensers and instant adhesives. Prospective hazards in devices dispensing market are low which shows the possibility of developing brand name awareness in not only instantaneous adhesives however likewise in dispensing adhesives as none of the industry players has handled to position itself in double abilities.
Hazard of Substitutes: The hazard of substitutes in the instant adhesive market is low while the dispenser market in particular has substitutes like Glumetic tip applicators, in-built applicators, pencil applicators and advanced consoles. The truth stays that if Western Technology Investment introduced Case Study Help, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).
Despite the fact that our 3C analysis has offered numerous factors for not launching Case Study Help under Western Technology Investment name, we have a suggested marketing mix for Case Study Help given below if Western Technology Investment decides to go ahead with the launch.
Product & Target Market: The target market picked for Case Study Help is 'Motor lorry services' for a number of factors. This market has an extra development capacity of 10.1% which might be a great sufficient specific niche market section for Case Study Help. Not just would a portable dispenser offer benefit to this specific market, the fact that the Do-it-Yourself market can likewise be targeted if a safe and clean low priced adhesive is being sold for usage with SuperBonder.
Price: The suggested price of Case Study Help has been kept at $175 to the end user whether it is sold through distributors or via direct selling. A rate below $250 would not need approvals from the senior management in case a mechanic at a motor lorry maintenance shop requires to acquire the product on his own.
Western Technology Investment would just be getting $157 per unit as shown in appendix 2 which gives a breakdown of gross success and net profitability for Western Technology Investment for launching Case Study Help.
Place: A distribution design where Western Technology Investment straight sends the product to the regional supplier and keeps a 10% drop shipment allowance for the distributor would be utilized by Western Technology Investment. Since the sales team is already taken part in offering immediate adhesives and they do not have expertise in offering dispensers, including them in the selling process would be pricey especially as each sales call expenses roughly $120. The distributors are currently selling dispensers so offering Case Study Help through them would be a beneficial option.
Promotion: A low marketing budget ought to have been assigned to Case Study Help but the fact that the dispenser is an innovation and it needs to be marketed well in order to cover the capital costs sustained for production, the suggested marketing strategy costing $51816 is recommended for initially presenting the item in the market. The prepared advertisements in publications would be targeted at mechanics in vehicle upkeep shops. (Suggested text for the ad is displayed in appendix 3 while the 4Ps are summarized in appendix 4).
