Loctite Corporation Analyzed

A more critical weakness is the opposition inside business towards the marketing on the Bond A Matic 2000 system. The company's Systems Division contends how the effortless and pretty low price Bond A Matic 2000 program as a threat for the company' reputation like a manufacturer of quality adhesive dispensing equipment.

A main company objective is being the premiere world wide marketer of instant adhesives for industrial use by 1985. The most likely gains from a decision to market the Bond A Matic 2000 technique needs to be weighed against potentially adverse final results on existing business products and solutions in assessing the likelihood that the Bond A Matic 2000 technique will contribute on the attainment in the objective.

Although chemical adhesives provide crucial advantages more than mechanical locking devices in industrial uses, mechanical devices account for approximately 80 percent from the industrial market. An opportunity to attain market share, thus, exists for firms just like Loctite which manufacturer chemical adhesives. Further, while the total adhesives marketplace is growing at the rate of 10 percent per year, the cyanoacrylates segment on the market is growing at an annual rate of 20 percent.

The only advertising case listed in "Idea Starters By Advertising and marketing Situation" that applies inside the situation with the Bond A Matic 2000 method stands out as the "New Product/Store Intro/Grand Opening"

 

In fact, however, the marketing situation at the Loctite Corporation is additional tough how the descriptions provided from the chart. In the company's marketing situation, a threat stems inside combination on the expiration of some adhesives patents as well as the low capital barriers to entry into the industrial adhesives market. New competitors could be expected to enter the market. One of people potential new competitors, just like the 3M Business has very trained sales force which can be expected to provide stiff competition for Loctite. The ability impact of this threat to the company's adhesives firm may be able to be partially offset by the successful introduction of new equipment items just like the Bond A Matic.

The Bond A Matic 2000 system are going to be priced at much less than one third that from the lowest price system now built by Loctite, and it's going to also be priced lower than most competitor systems, which themselves are priced at only 2 thirds the levels from the lowest price system now created by Loctite. The Bond A Matic system, thus, is often a double threat to existing company systems. The system's low cost might lead to some customers to question the wisdom of paying the greater prices for Loctite's existing systems, and such questioning could be manifested as either a switch by shoppers from Loctite's.

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