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Business Networks Case Study Help Checklist

Business Networks Case Study Help Checklist

Business Networks Case Study Solution
Business Networks Case Study Help
Business Networks Case Study Analysis



3 C Analyses for Evaluating Business Networks decision to launch Case Study Solution


The following section focuses on the 3Cs of marketing for Business Networks where the company's consumers, rivals and core proficiencies have assessed in order to justify whether the choice to launch Case Study Help under Business Networks trademark name would be a practical option or not. We have to start with looked at the type of consumers that Business Networks handle while an examination of the competitive environment and the business's weaknesses and strengths follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Business Networks name.
Business Networks Case Study Solution

Customer Analysis

Both the groups use Business Networks high efficiency adhesives while the business is not only included in the production of these adhesives but likewise markets them to these consumer groups. We would be focusing on the customers of instant adhesives for this analysis given that the market for the latter has a lower potential for Business Networks compared to that of instantaneous adhesives.

The total market for immediate adhesives is roughly 890,000 in the US in 1978 which covers both client groups which have been recognized earlier.If we take a look at a breakdown of Business Networks potential market or consumer groups, we can see that the business sells to OEMs (Initial Equipment Manufacturers), Do-it-Yourself customers, repair and revamping business (MRO) and makers handling items made of leather, wood, plastic and metal. This variety in customers recommends that Business Networks can target has different choices in terms of segmenting the market for its new item especially as each of these groups would be requiring the same kind of item with particular modifications in quantity, product packaging or demand. However, the customer is not cost delicate or brand name mindful so releasing a low priced dispenser under Business Networks name is not an advised alternative.

Company Analysis

Business Networks is not simply a producer of adhesives but delights in market management in the immediate adhesive industry. The business has its own competent and competent sales force which adds worth to sales by training the company's network of 250 suppliers for facilitating the sale of adhesives.

Core skills are not limited to adhesive production only as Business Networks likewise focuses on making adhesive dispensing devices to help with making use of its products. This double production technique provides Business Networks an edge over competitors because none of the competitors of giving equipment makes immediate adhesives. Additionally, none of these rivals offers directly to the consumer either and utilizes suppliers for reaching out to customers. While we are looking at the strengths of Business Networks, it is essential to highlight the company's weaknesses.

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

If we take a look at Business Networks product line in adhesive equipment particularly, the business has products targeted at the high end of the marketplace. The possibility of sales cannibalization exists if Business Networks sells Case Study Help under the same portfolio. Offered the reality that Case Study Help is priced lower than Business Networks high-end line of product, sales cannibalization would certainly be affecting Business Networks sales profits if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization impacting Business Networks 27A Pencil Applicator which is priced at $275. If Case Study Help is released under the company's brand name, there is another possible threat which might lower Business Networks income. The reality that $175000 has actually been spent in promoting SuperBonder recommends that it is not a great time for releasing a dispenser which can highlight the truth that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

In addition, if we take a look at the market in general, the adhesives market does disappoint brand name orientation or price consciousness which gives us 2 extra factors for not releasing a low priced item under the business's trademark name.

Competitor Analysis

The competitive environment of Business Networks 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 existence of fragmented sections with Business Networks taking pleasure in leadership and a combined market share of 75% with two other market players, Eastman and Permabond. While industry rivalry between these players could be called 'extreme' as the customer is not brand mindful and each of these gamers has prominence in regards to market share, the reality still remains that the industry is not saturated and still has several market sectors which can be targeted as potential specific niche markets even when introducing an adhesive. However, we can even point out the truth that sales cannibalization may be causing market rivalry in the adhesive dispenser market while the marketplace for instantaneous adhesives provides growth capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the purchaser has low knowledge about the item. While companies like Business Networks have handled to train distributors regarding adhesives, the last consumer depends 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: Given the fact that the adhesive market is controlled by 3 gamers, it could be said that the provider takes pleasure in a higher bargaining power compared to the purchaser. The truth remains that the provider does not have much impact over the purchaser at this point specifically as the buyer does not reveal brand name acknowledgment or rate level of sensitivity. This suggests that the distributor has the greater power when it concerns the adhesive market while the buyer and the manufacturer do not have a major control over the real sales.

Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese competitors in the instant adhesive market suggests that the marketplace allows ease of entry. If we look at Business Networks in particular, the company has dual abilities in terms of being a maker of instant adhesives and adhesive dispensers. Potential dangers in devices giving industry are low which shows the possibility of creating brand name awareness in not only instantaneous adhesives however likewise in giving adhesives as none of the industry players has handled to place itself in double capabilities.

Threat of Substitutes: The threat of alternatives in the immediate adhesive market is low while the dispenser market in particular has alternatives like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and sophisticated consoles. The truth remains that if Business Networks presented 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

Business Networks Case Study Help


Despite the fact that our 3C analysis has offered various factors for not launching Case Study Help under Business Networks name, we have a suggested marketing mix for Case Study Help provided listed below if Business Networks decides to go ahead with the launch.

Product & Target Market: The target market selected for Case Study Help is 'Motor vehicle services' for a number of reasons. This market has an extra growth capacity of 10.1% which might be a great adequate niche market sector for Case Study Help. Not only would a portable dispenser deal benefit to this particular market, the truth that the Do-it-Yourself market can also be targeted if a safe and clean low priced adhesive is being sold 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 through direct selling. This price would not consist of the expense of the 'vari suggestion' or the 'glumetic pointer'. A price listed below $250 would not require approvals from the senior management in case a mechanic at a motor vehicle upkeep shop requires to acquire the product on his own. This would increase the possibility of influencing mechanics to acquire the item for use in their daily upkeep jobs.

Business Networks would only be getting $157 per unit as shown in appendix 2 which provides a breakdown of gross success and net profitability for Business Networks for launching Case Study Help.

Place: A distribution design where Business Networks straight sends out the product to the regional supplier and keeps a 10% drop shipment allowance for the supplier would be used by Business Networks. Considering that the sales team is currently participated in selling immediate adhesives and they do not have expertise in offering dispensers, involving them in the selling process would be pricey especially as each sales call costs roughly $120. The suppliers are currently selling dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: Although a low marketing budget plan ought to have been assigned to Case Study Help but the reality that the dispenser is a development and it needs to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing plan costing $51816 is advised for at first introducing the item in the market. The prepared ads in publications would be targeted at mechanics in automobile upkeep stores. (Suggested text for the advertisement is displayed in appendix 3 while the 4Ps are summarized in appendix 4).


Limitations: Arguments for forgoing the launch Case Study Analysis
Business Networks Case Study Analysis

A suggested strategy of action in the type of a marketing mix has been gone over for Case Study Help, the truth still remains that the item would not match Business Networks item line. We take a look at appendix 2, we can see how the total gross profitability for the two models is expected to be roughly $49377 if 250 systems of each model are produced per year according to the plan. The initial planned advertising is around $52000 per year which would be putting a stress on the business's resources leaving Business Networks with an unfavorable net income if the expenditures are assigned to Case Study Help only.

The truth that Business Networks has already sustained a preliminary financial investment of $48000 in the form of capital expense and model development suggests that the earnings from Case Study Help is insufficient to carry out the threat of sales cannibalization. Besides that, we can see that a low priced dispenser for a market showing low elasticity of demand is not a preferable choice especially of it is affecting the sale of the business's revenue producing designs.



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