Unbound Project Case Study Solution
The proposed venture is about to set-up the production plant which will be responsible for the development of the bowl bomb calorimeter which will be used in many corporate sectors and this device will be used by domestic consumers as well. Although the project is still under planning stage and it is also uncertain till now about when the production of the specialized bowl bomb calorimeter will start. The final products of this venture will be superior to the products of competitors in terms of all factors such as quality and innovative features and this product will be priced lower as compare to the similar products of the main competitors. The industry appears to be highly competitive with majority of the revenues is shared by few producer of the specialized devices. The barriers to entry are in this industry also appears to be quite high due to inherent complex and technical nature of the operations.
Despite the difficult trading and operating conditions the industry can be classified as favorable for the new comers and old players because of the expected increase in the number of users of these specialized machineries. It can be said that the competitors of this proposed venture are very ahead both in terms of quality and costs, as they have vast experience in this field and as a result of this experience, all the costs particularly fix costs are low, these benefits would not be available to the organization which commences its operations recently. In order to obtain the competitive advantage and to sustain the competitive advantage the hardware and the software of the bowl bomb Calorimeter should have to develop using latest technologies which cannot be easily available to all the competitors.
On the other hand the target market of the bowl bomb Calorimeter manufacturer is also very niched, not all the users of the specialized devices are their target market of the proposed venture, their main class of customers would be the food processing companies, Animal feed researchers and the business responsible for managing waste materials as well.
The status of this company should be public, it can be argued that the operations of the company demand high capital expenditure in the initial period and the operations should also be managed by highly qualified personnel which also requires high cash. The availability of finance to the private company is often constrained while public companies usually have large funds. Furthermore, the public limited companies can easily obtain new finance to pursue the growth strategies while private companies struggles to obtain finance due to the increased risk profile of the companies.
Mission Statement:
“Our mission is to enable our valuable customers to use the highest quality instruments in order to fulfill their needs at affordable prices which allow us to accomplish our ultimate purpose of maximizing the wealth of our shareholders.”
Industry Environment:
The industry appears to be quite competitive, and the profits in the bomb calorimeter manufacturing industry also seem to be quite low. Despite this factor, the industry appears to be quite favorable for the developers of Bomb Calorimeter, only if the instruments of new entrants are up to the mark in terms of quality and they charge low as compare to the established players. Furthermore, the barriers to the entry for the new entrants appears to be very high and rigid; the strategies of the proposed venture should have to be developed in such a manner which properly addresses these issues.
Competitive Advantage:
The competitive advantage will be very difficult to gain because of the expertise, resources, and experience of the current manufacturers which are operating in the market, even if the competitive advantage is gained by the proposed venture it would be very difficult for the company to sustain the competitive advantage for a longer period of time.In order to obtain the competitive advantage it is very important that the bomb calorimeter devices of the proposed venture should be developed in such a manner that it includes sufficient points of differentiations and they also should have to include some innovative features which are not presented in the devices of the competitors.
Financial Potentials and anticipated risks:
After the successful implementation of the project and once the project is set, it can be said that the manufacturing plant would have sufficient capabilities to generate good financial results for the investors. On the other hand, there might be many risks that would pertain to the initial products of the company such as quality of the products, the accuracy of the bomb calorimeter devices and the other financial risks. Because of the complex nature of the products it can be assessed that in the initial products there might be some quality issues which might impact the reputation of the proposed venture. Furthermore, customers generally might find themselves reluctant to purchase the products from the relatively new manufacturer which might cause some severe cash flow problems for the newly developed entity.....................
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