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Peak Sealing Technology Case Study

In: Business and Management

Submitted By soparm
Words 706
Pages 3
Management of Innovation, Technology and Entrepreneurship
Sopar Matoga M – 29113409 – BLEMBA 15
Case Analysis Peak Sealing Technologies’ Product Line Dilemma

Guiding Question: 1. What is the company’s values at PST and analyze the pro and cons of introducing an economy tape
* Values: * K-2 tapes line provide leading performance in durability, materials, holding force, temperature resistance level and extreme utilization condition. * Despite the premium pricing, K-2 product provide more competitive overall cost trough superior performance. * K-2 sales force are the best trained and knowledgeable in the industry, K-2 sales force also provide sales and technical assistance include performing cost effectiveness studies for client. * K-2 supported by loyal and highly selective distributor. Distributors holds multi adhesive brands but historically tend to steer customer selection to K2 products.

* Issues:

* K2 superior product has no head-to-head competitor thus its often compared head-to-head with inferior product at the market. * The acquisition of packaging system firm in 2009 diverted the sales force focus to more product line and system * K2’s distributors tend to focus on order processing and fulfilment only and didn’t play role as brand and technical ambassador instead leave the customer service to the principal’s sales force. * Competitor imitate K2 profile with lower price, even though the quality is unmatched but price sensitive buyer will shift their purchase and that will cost 60% of the market size * GP48, already taking some of K2 other product’s share, GP customer segment – price sensitive spectrum
* Pros of introduction economy tape * Get into the competition directly especially in lower segment market * Grab more market segment and potential revenue * Coupe more footprint...

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