Business Marketing: Peak Sealing Technologies Product Line Extension Dilemma
Business Marketing: Peak Sealing Technologies Product Line Extension Dilemma
Business Marketing: Peak Sealing Technologies Product Line Extension Dilemma
CASE STUDY
ON
DR. R SUGANT
Submitted by
Group – 8
Natural adhesives
Emulsion
Dispersion chemistries
Hot melt formulations
Other reactive and solvent-based adhesives
Packaging – Adhesive demand in the packaging industry was at 5,045 million pounds
in 2012, a 4% net decline versus 2007. This segment represented a mature market
with demand driven by volume of packaging shipments.
Manufacturing & assembly – Key industries for the manufacturing and assembly
market included motor vehicles, aerospace equipment, electrical and electronic
equipment, furniture and machinery. Demand for this segment was at 2,249 million
pounds in 2012 with moderate growth expected from a rebound in manufacturing
activity.
Construction – Demand for adhesives in the construction market was 1,053 million
pounds in 2012. This segment was forecasted to be the fastest growing sector with
6.1% annual growth projected from 2012 to 2017. Growth was expected to be driven
by new building construction and increased repair spending.
Consumer / Other – this segment comprised a great variety of adhesives for home use
such as super glue, wood glue, white glue as well as adhesives used in crafts/hobbies,
nail repair, jewellery design and other miscellaneous applications.
Q3. Map the different SBUs of PST onto GE-McKinsey 9 Box matrix giving reasons and
rationale for the mapping.
QUESTION
MARK
STARS
manufacturing &
construction assembly
Stars:
Demand for adhesives in the construction market was forecasted to grow by 6.1% from 2012
to 2017 which was driven by increased constructions and repairs. Products in this segment
seems to have a high market growth rate and market share which tends to increase.
Cows:
Packaging industries represent a mature market. It is being forecasted to grow at an expected
annual growth rate of only 1.1% from 2012 to 2017. Demand for adhesive from this segment
is expected to increase from 5045 million pounds in 2012 to 5330 million pounds in 2017 and
they contribute a good percentage of revenue to the annual sales of PST.
Question Marks:
Key industries for the manufacturing and assembly market included motor vehicles,
aerospace equipment, electrical and ssssssssselectronic equipment, furniture and machinery.
Demand for this segment was at 2,429 million pounds in 2012 with moderate growth
expected from a rebound in manufacturing activity. Products in this segment is expected to
grow.
Dogs:
This segment comprised a great variety of adhesives for home use such as super glue, wood
glue, white glue as well as adhesives used in crafts/hobbies, nail repair, jewellery design and
other miscellaneous applications. Products in this segment have very low growth rate.
Each SBU is classified based on the industry attractiveness and competitive strength of the
SBU
SD-72 and HD-72 seems to have shown low performance and low market attractiveness
hence it is better to stop investing on the same
Consumer packaging, manufacturing has a fair growth rate of 1.1% and hence can be
managed for earnings
Packaging systems, K2 tapes, GP-48, RD-72 have strong sales records which shows highly
competitive strength and industry attractiveness.