Submitted by: Submitted by bg022400
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Words: 298
Pages: 2
Category: Other Topics
Date Submitted: 11/07/2010 06:39 PM
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...