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Silicon Graphics Inc B Case Study Help Checklist

Silicon Graphics Inc B Case Study Help Checklist

Silicon Graphics Inc B Case Study Solution
Silicon Graphics Inc B Case Study Help
Silicon Graphics Inc B Case Study Analysis



3 C Analyses for Evaluating Silicon Graphics Inc B decision to launch Case Study Solution


The following area focuses on the 3Cs of marketing for Silicon Graphics Inc B where the company's clients, competitors and core competencies have examined in order to justify whether the decision to introduce Case Study Help under Silicon Graphics Inc B trademark name would be a practical choice or not. We have firstly looked at the kind of consumers that Silicon Graphics Inc B deals in while an examination of the competitive environment and the company's weak points and strengths follows. Embedded in the 3C analysis is the justification for not releasing Case Study Help under Silicon Graphics Inc B name.
Silicon Graphics Inc B Case Study Solution

Customer Analysis

Both the groups use Silicon Graphics Inc B high efficiency adhesives while the business is not only involved in the production of these adhesives but likewise markets them to these client groups. We would be focusing on the consumers of instantaneous adhesives for this analysis since the market for the latter has a lower potential for Silicon Graphics Inc B compared to that of immediate adhesives.

The total market for instant adhesives is roughly 890,000 in the US in 1978 which covers both consumer groups which have actually been determined earlier.If we look at a breakdown of Silicon Graphics Inc B potential market or client groups, we can see that the company sells to OEMs (Original Devices Makers), Do-it-Yourself customers, repair work and overhauling companies (MRO) and producers dealing in items made of leather, plastic, wood and metal. This variety in clients suggests that Silicon Graphics Inc B can target has numerous options in regards to segmenting the market for its new item specifically as each of these groups would be needing the exact same type of product with particular modifications in quantity, product packaging or need. The consumer is not price delicate or brand name conscious so introducing a low priced dispenser under Silicon Graphics Inc B name is not an advised alternative.

Company Analysis

Silicon Graphics Inc B is not simply a manufacturer of adhesives however takes pleasure in market leadership in the instant adhesive industry. The company has its own competent and competent sales force which includes worth to sales by training the business's network of 250 distributors for facilitating the sale of adhesives.

Core proficiencies are not restricted to adhesive manufacturing just as Silicon Graphics Inc B also concentrates on making adhesive dispensing equipment to assist in making use of its items. This dual production method offers Silicon Graphics Inc B an edge over competitors given that none of the rivals of dispensing devices makes instantaneous adhesives. Furthermore, none of these competitors sells straight to the customer either and makes use of suppliers for connecting to customers. While we are looking at the strengths of Silicon Graphics Inc B, it is crucial to highlight the company's weaknesses.

Although the business's sales personnel is skilled in training distributors, the reality stays that the sales team is not trained in offering devices so there is a possibility of relying heavily on suppliers when promoting adhesive equipment. It should likewise be kept in mind 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 name.

The company has actually products aimed at the high end of the market if we look at Silicon Graphics Inc B item line in adhesive equipment particularly. If Silicon Graphics Inc B offers Case Study Help under the exact same portfolio, the possibility of sales cannibalization exists. Given the truth that Case Study Help is priced lower than Silicon Graphics Inc B high-end product line, sales cannibalization would absolutely be affecting Silicon Graphics Inc B sales revenue if the adhesive equipment is sold under the company's brand.

We can see sales cannibalization impacting Silicon Graphics Inc B 27A Pencil Applicator which is priced at $275. There is another possible risk which could decrease Silicon Graphics Inc B income if Case Study Help is launched under the business's brand name. The reality that $175000 has been spent in promoting SuperBonder suggests that it is not a great time for introducing a dispenser which can highlight the fact that SuperBonder can get logged and Case Study Help is the anti-clogging solution for the instantaneous adhesive.

Additionally, if we look at the marketplace in general, the adhesives market does disappoint brand name orientation or price awareness which offers us 2 extra factors for not introducing a low priced product under the company's brand name.

Competitor Analysis

The competitive environment of Silicon Graphics Inc B would be studied via Porter's five 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 Silicon Graphics Inc B enjoying management and a combined market share of 75% with two other industry players, Eastman and Permabond. While market rivalry between these players could be called 'extreme' as the consumer is not brand mindful and each of these players has prominence in terms of market share, the fact still stays that the market is not filled and still has numerous market segments which can be targeted as possible niche markets even when releasing an adhesive. However, we can even explain the reality that sales cannibalization may be resulting in industry rivalry in the adhesive dispenser market while the marketplace for instant adhesives uses growth 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 item. While business like Silicon Graphics Inc B have managed to train suppliers concerning adhesives, the last customer is dependent on suppliers. Around 72% of sales are made directly by makers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Offered the reality that the adhesive market is controlled by three gamers, it could be said that the supplier takes pleasure in a greater bargaining power compared to the buyer. The truth remains that the provider does not have much impact over the buyer at this point specifically as the buyer does not reveal brand acknowledgment or rate sensitivity. When it comes to the adhesive market while the producer and the buyer do not have a significant control over the actual sales, this shows that the distributor has the greater power.

Threat of new entrants: The competitive environment with its low brand loyalty and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market indicates that the market allows ease of entry. If we look at Silicon Graphics Inc B in particular, the company has double capabilities in terms of being a producer of adhesive dispensers and immediate adhesives. Prospective threats in devices giving market are low which reveals the possibility of developing brand name awareness in not just instant adhesives however also in dispensing adhesives as none of the market players has handled to position itself in double capabilities.

Hazard of Substitutes: The hazard of replacements in the instant adhesive market is low while the dispenser market in particular has alternatives like Glumetic tip applicators, built-in applicators, pencil applicators and advanced consoles. The reality remains that if Silicon Graphics Inc B presented 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

Silicon Graphics Inc B Case Study Help


Despite the fact that our 3C analysis has actually provided different factors for not releasing Case Study Help under Silicon Graphics Inc B name, we have actually a recommended marketing mix for Case Study Help given below if Silicon Graphics Inc B chooses to proceed with the launch.

Product & Target Market: The target market picked for Case Study Help is 'Motor vehicle services' for a number of factors. This market has an extra development potential of 10.1% which might be a great sufficient specific niche market section for Case Study Help. Not just would a portable dispenser deal convenience 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 use with SuperBonder.

Price: The recommended price of Case Study Help has actually been kept at $175 to the end user whether it is sold through suppliers or by means of direct selling. This cost would not include the cost of the 'vari tip' or the 'glumetic idea'. A rate below $250 would not require 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 purchase the item for usage in their everyday maintenance tasks.

Silicon Graphics Inc B would only be getting $157 per unit as shown in appendix 2 which offers a breakdown of gross success and net profitability for Silicon Graphics Inc B for introducing Case Study Help.

Place: A circulation model where Silicon Graphics Inc B straight sends out the product to the local distributor and keeps a 10% drop shipment allowance for the distributor would be utilized by Silicon Graphics Inc B. Given that the sales group is already taken part in offering immediate adhesives and they do not have knowledge in offering dispensers, including them in the selling procedure would be pricey particularly as each sales call expenses approximately $120. The distributors are already selling dispensers so offering Case Study Help through them would be a beneficial alternative.

Promotion: Although a low promotional spending plan must have been designated to Case Study Help however the reality that the dispenser is a development and it requires to be marketed well in order to cover the capital expenses incurred for production, the suggested marketing plan costing $51816 is recommended for initially introducing the product in the market. The planned advertisements in magazines would be targeted at mechanics in vehicle maintenance shops. (Suggested 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
Silicon Graphics Inc B Case Study Analysis

Although a suggested plan of action in the form of a marketing mix has actually been discussed for Case Study Help, the reality still stays that the item would not match Silicon Graphics Inc B line of product. We have a look at appendix 2, we can see how the total gross success for the two models is expected to be approximately $49377 if 250 systems of each model are made per year as per the strategy. The preliminary planned advertising is around $52000 per year which would be putting a pressure on the company's resources leaving Silicon Graphics Inc B with an unfavorable net earnings if the expenses are designated to Case Study Help just.

The truth that Silicon Graphics Inc B has already sustained a preliminary investment of $48000 in the form of capital cost and model development suggests that the earnings from Case Study Help is insufficient to undertake the threat of sales cannibalization. Aside from that, we can see that a low priced dispenser for a market showing low flexibility of need is not a preferable choice particularly of it is impacting the sale of the business's income generating models.



Executive Summary Porters Five Forces Analysis Pestel Analysis Financial Analysis
Generic Strategy Vrine Analysis