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Lucent Technologies Optical Networking Group Case Study Help Checklist

Lucent Technologies Optical Networking Group Case Study Help Checklist

Lucent Technologies Optical Networking Group Case Study Solution
Lucent Technologies Optical Networking Group Case Study Help
Lucent Technologies Optical Networking Group Case Study Analysis



3 C Analyses for Evaluating Lucent Technologies Optical Networking Group decision to launch Case Study Solution


The following area concentrates on the 3Cs of marketing for Lucent Technologies Optical Networking Group where the company's customers, competitors and core competencies have examined in order to validate whether the choice to introduce Case Study Help under Lucent Technologies Optical Networking Group brand name would be a practical choice or not. We have actually firstly looked at the type of consumers that Lucent Technologies Optical Networking Group handle while an assessment of the competitive environment and the company's strengths and weak points follows. Embedded in the 3C analysis is the validation for not introducing Case Study Help under Lucent Technologies Optical Networking Group name.
Lucent Technologies Optical Networking Group Case Study Solution

Customer Analysis

Lucent Technologies Optical Networking Group clients can be segmented into two groups, commercial customers and final customers. Both the groups utilize Lucent Technologies Optical Networking Group high performance adhesives while the business is not only associated with the production of these adhesives however also markets them to these consumer groups. There are two types of items that are being offered to these potential markets; instantaneous adhesives and anaerobic adhesives. We would be focusing on the customers of instantaneous adhesives for this analysis considering that the marketplace for the latter has a lower potential for Lucent Technologies Optical Networking Group compared to that of instant adhesives.

The overall market for immediate adhesives is approximately 890,000 in the US in 1978 which covers both client groups which have been determined earlier.If we look at a breakdown of Lucent Technologies Optical Networking Group prospective market or consumer groups, we can see that the company offers to OEMs (Original Equipment Makers), Do-it-Yourself customers, repair and upgrading companies (MRO) and manufacturers dealing in items made of leather, wood, plastic and metal. This diversity in customers recommends that Lucent Technologies Optical Networking Group can target has different choices in terms of segmenting the market for its new product especially as each of these groups would be needing the very same kind of product with particular modifications in quantity, demand or packaging. The customer is not rate sensitive or brand name mindful so launching a low priced dispenser under Lucent Technologies Optical Networking Group name is not an advised option.

Company Analysis

Lucent Technologies Optical Networking Group is not just a producer of adhesives however enjoys market management in the instant adhesive market. The company has its own experienced and competent sales force which includes worth to sales by training the business's network of 250 distributors for helping with the sale of adhesives.

Core competences are not limited to adhesive production only as Lucent Technologies Optical Networking Group likewise concentrates on making adhesive dispensing devices to assist in making use of its products. This dual production method gives Lucent Technologies Optical Networking Group an edge over rivals since none of the rivals of giving devices makes instant adhesives. Furthermore, none of these rivals sells straight to the customer either and uses suppliers for connecting to clients. While we are looking at the strengths of Lucent Technologies Optical Networking Group, it is important to highlight the company's weaknesses.

The company's sales staff is experienced 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 devices. It needs to likewise be noted that the suppliers are revealing hesitation when it comes to offering devices that requires maintenance which increases the challenges of offering devices under a specific brand name.

If we look at Lucent Technologies Optical Networking Group line of product in adhesive devices especially, the company has actually products focused on the high end of the marketplace. If Lucent Technologies Optical Networking Group offers 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 Lucent Technologies Optical Networking Group high-end line of product, sales cannibalization would definitely be affecting Lucent Technologies Optical Networking Group sales revenue if the adhesive devices is sold under the business's trademark name.

We can see sales cannibalization affecting Lucent Technologies Optical Networking Group 27A Pencil Applicator which is priced at $275. If Case Study Help is introduced under the company's brand name, there is another possible risk which could lower Lucent Technologies Optical Networking Group income. The reality that $175000 has actually been spent in promoting SuperBonder suggests that it is not a great time for launching 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 look at the marketplace in general, the adhesives market does not show brand orientation or cost awareness which provides us two extra factors for not launching a low priced product under the company's trademark name.

Competitor Analysis

The competitive environment of Lucent Technologies Optical Networking Group would be studied by means of 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 growth capacity due to the existence of fragmented sections with Lucent Technologies Optical Networking Group taking pleasure in management and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While market competition between these gamers could be called 'intense' as the customer is not brand conscious and each of these players has prominence in regards to market share, the fact still stays that the industry is not saturated and still has several market segments which can be targeted as prospective specific niche markets even when launching an adhesive. We can even point out the reality that sales cannibalization might be leading to market rivalry in the adhesive dispenser market while the market for instantaneous adhesives offers development capacity.


Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low particularly as the buyer has low knowledge about the product. While companies like Lucent Technologies Optical Networking Group have actually managed to train suppliers regarding adhesives, the final customer is dependent on suppliers. Approximately 72% of sales are made straight by producers and distributors for instant adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Given the fact that the adhesive market is controlled by 3 players, it could be said that the provider takes pleasure in a greater bargaining power compared to the buyer. Nevertheless, the fact stays that the supplier does not have much influence over the buyer at this point especially as the purchaser does disappoint brand recognition or rate level of sensitivity. This shows that the supplier has the greater power when it comes to 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 shown by foreign Japanese competitors in the instantaneous adhesive market suggests that the marketplace allows ease of entry. However, if we look at Lucent Technologies Optical Networking Group in particular, the business has double capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Possible risks in devices dispensing industry are low which shows the possibility of developing brand awareness in not just immediate adhesives but also in giving adhesives as none of the industry players has actually handled to place itself in dual abilities.

Threat of Substitutes: The danger 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 advanced consoles. The fact remains that if Lucent Technologies Optical Networking Group introduced Case Study Help, it would be delighting in sales cannibalization for its own items. (see appendix 1 for framework).


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

Lucent Technologies Optical Networking Group Case Study Help


Despite the fact that our 3C analysis has actually given different factors for not launching Case Study Help under Lucent Technologies Optical Networking Group name, we have a recommended marketing mix for Case Study Help offered below if Lucent Technologies Optical Networking Group chooses to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor automobile services' for a number of reasons. This market has an extra development capacity of 10.1% which may be a great enough specific niche market section for Case Study Help. Not just would a portable dispenser deal convenience to this particular market, the reality that the Diy market can also be targeted if a potable low priced adhesive is being sold for use with SuperBonder.

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

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

Place: A distribution design where Lucent Technologies Optical Networking Group directly sends out the product to the regional distributor and keeps a 10% drop shipment allowance for the supplier would be used by Lucent Technologies Optical Networking Group. Given that the sales team is already participated in offering instant adhesives and they do not have expertise in offering dispensers, including them in the selling process would be expensive particularly as each sales call costs roughly $120. The distributors are already offering dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: A low promotional spending plan needs to have been assigned 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 marketing plan costing $51816 is suggested for initially presenting the product in the market. The prepared ads in magazines would be targeted at mechanics in car upkeep stores. (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
Lucent Technologies Optical Networking Group Case Study Analysis

Although a recommended strategy in the form of a marketing mix has been discussed for Case Study Help, the fact still stays that the product would not match Lucent Technologies Optical Networking Group line of product. We have a look at appendix 2, we can see how the total gross success for the two designs is expected to be roughly $49377 if 250 systems of each model are made per year based on the strategy. Nevertheless, the initial planned advertising is approximately $52000 each year which would be putting a pressure on the company's resources leaving Lucent Technologies Optical Networking Group with an unfavorable earnings if the expenses are allocated to Case Study Help only.

The reality that Lucent Technologies Optical Networking Group has currently incurred a preliminary investment of $48000 in the form of capital cost and prototype development indicates that the profits from Case Study Help is inadequate to undertake the risk of sales cannibalization. Besides that, we can see that a low priced dispenser for a market revealing low elasticity of demand is not a more effective alternative especially of it is impacting the sale of the company's profits generating designs.



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