Super Tape

Super Tape- New Market Entry Strategy

Business Level Strategy –

The firm wants to position its tape product as a differentiated offering in a niche market

Positioning in Market:

Low Reliability

High Reliability

Multi-Purpose

Single Purpose

The reasons for choosing this positioning:

Market has no duct tape application to serve the needs of the industrial and manufacturing sector in thermal and hydraulic environments. There is a possibility to charge premium price given the fact that single multi-purpose product would help to keep customer inventory levels low, producing high quality product in critical applications in industry. Since, the new firm has core- competency in special composites to make the tape, we are positioning ourselves to target the niche segment .

Company – Core Competencies

* R&D capabilities for thermal, electrical insulation and hydraulic resistant composites

* Process engineering for keeping production costs low

Competition

* Low competition in niche space

* No proven product to address the needs of thermal, electrical insulation and hydraulic duct tape applications

* Low R&D capabilities for specific duct tapes amidst competitors

Consumer

* Underserved industrial and manufacturing sector requiring duct tape solutions

* Need for multi-purpose product for industrial applications (low inventory USP)

* Consumer focus on quality and reliability of tape in extreme temperatures and oil conditions

* Consumer is not price sensitive if product is proven to meet multiple needs

Resources & how to acquire them?

* Quality Raw Material - committed suppliers for raw material to use in the formula for providing features to product, flexible contract terms to address any increase in demand in a scenario when there is uncertain demand

* Manufacturing processes – for making specialized product at low cost

* Specialized manufacturing facility

* B2B associations with Small/Medium...