Market Research Essay: SUHR Cutters A/S Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Market Research Essay: SUHR Cutters A/S Case Study Analysis

Threat of substitutes

The threat of substitutes is the low force due to the fact that the use of the machine is common means of producing textile except in the lowest range of marker where customers prefer to make the job without using machines i.e. manual labor. Also, the small threat from the substitutes is well in the highest range of markets where textile manufacturing company makes considerable amount of investment in automated machines rather than people in order to provide the advantages of improving quality as well as productivity while increasing safety, reducing waste and errors as well as adding flexibility to the process of manufacturing.

Bargaining power of the buyer

There isa number of companies that are part of the bigger groups and leads the manufacturing preferences of the machine oriented to some specific supplier. There is less influence of buyer on the price, but higher influence on the characteristics of the product, due to which, the supplier of the product need to make considerable changes and bring some innovation in the design of the product. Following this, the supplier of the machine needs to invest in new technologies with the core purpose of improving efficiencies & supply the latest innovations that would help in maintaining the global and domestic share of the market.

Bargaining power of supplier

The bargaining power of suppliers force is between low and medium, because although the market has a various number of suppliers of cutting machines they do not have a loyal customer base due to the low quality product offerings as compared to SUHR Cutters A/S. To gain high profit returns, the competitors need to work on innovation, differentiation and quality of the products to attract the larger customer base and make customers loyal towards their product.

Intensity of rivalry

Despite the availability of the competitors in the market, the competition is not intense or rigorous to a greater extent due to the lack of product innovation and technical advancement. Hence, the position of SUHR Cutters A/S is strong in the market & the level of competition in the market is low. As the competition is not tighter between competitors, there is low rivalry capturing the market share, hence providing the opportunity to SUHR Cutters A/S to invest in fully automated machines and offer the quality product to customers to create customer loyalty.

Data collection

As the customers of SUHR Cutters A/S are companies which are primarily engaged in the manufacturing of textile or apparel, a qualitative approach with mail surveys would be used in order to obtain a valuable understanding and knowledge of buyer’s expectations and satisfaction with the servicesusing the e-mail contacts, telephonic conversation, and physical visits to share specifically designed questionnaire with the participants in order to receive their suitable and appropriate feedback on the shared questionnaire. Because of the customers’ feedback and personal experience is the only thing that could validate the most significant decision of the company.

Getting high rates of response for the customer feedback survey initiates with developing the most effective survey feedback invitation. The fewer questions would be asked to textile manufacturing companies which would allow them to easily answer the questions, hence leading to higher survey response rates. The email survey would be based on simple concept i.e. embedding or incorporating hyperlinks in the HTML code of mail. In doing so, the survey would be sent to textile manufacturing companies in an email & the responses are hyperlinks because clicking a link provided in the mail counts as a response to the survey. All the click would be recorded in the database of the email survey tool, which helps in easy analysis of the collected survey results. During designing an email-survey questionnaire, it should be ensured that simple sentences, easy language, and relevant questions are included. Through a survey questionnaire, the company would be able to gain valuable insights and knowledge about:

Evaluating the requirements and expectation of the customers from the product or service.
Finding key areas of improvement in order to prevent the customers from walking away in the near future.
Assessing the external factors that positively as well as negatively affect the purchase pattern of the textile manufacturing companies.

Target market (where)

Considering the growth patterns as well as trendsin the Asian countries and the US market, the profit potential of the industry provides opportunities to the suppliers of cutting machines to grasp the market share through developing a cutting technology to satisfy the customer and to achieve the desired outcomes. Also, the unmatched durability of the tool & cutting capabilities is the core consideration of the customers. Taking into account the analysis & evaluation of the both market, SUHR Cutters A/S is recommended to firstly focus onserving the customers in Asian countries because of the growth drivers which are accountable for the robust growth of the Asia based textile manufacturing industry such as surging per capita expenditure, increasing investment by major regional players, wide and larger customer base as well as improving lifestyle of the customers. All of these factors drive the demand for the textile in the market, which in turn increases the dependence of textile manufacturing companies over purchases of cutting machines. In addition to this, it is projected that the trend of growth would continue in the near future. After meeting the customer requirement in Asia, SUHR Cutters A/S should develop the new machine, sell them to the US based textile manufacturing companies and increase the operational efficiencies and profits.

Taking into account the favourable textile manufacturing industry dynamics, the organization is required to develop the cutting machine with advanced technological approaches not only to meet the demands of the vendors but to provide the customers with high-quality textile products. This can significantly be done through heavy investment in R&D to come up with innovative solution to be competitive in the textile manufacturing market. Additionally, the development of cutting machine with all the features highlighted by the customers through online survey would increase the sales resulting in generation of higher revenues and profits in the international market............................

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