THE CASE STUDY

Case Study



Case study

1. This is obviously an exciting new product for Aero Alloys Inc. and managed correctly should help their competitive advantage and profitability. In order to maximise the commercial success of the new alloy, what is the first thing the company should consider before they take the product to market?

Ans. The first thing the company should do is to use three major criteria to select materials: desired properties, such as mechanical strength, modulus, plastic flow resistance, fatigue resistance, damage tolerance, corrosion resistance, characteristics under electrical influences, behavior in fire, and environmental impact (toxicity and pollution); Manufacturing expertise available to work with a material, such as casting, machining, forming, etc.; and economic viability, encompassing the cost of the material (both initial and over its life cycle), the cost of constituent production, the accessibility of the material, and the number of supply causes. The cost grade furthermore counts on the kind of marketing scheme taken up for the product.

The likely trading strategies are listed below:

(a)Rapid Skimming: It mentions to commencing a new merchandise at a high grade of cost with high grade of sales promotion. It refers to the product which is of high quality, butnot known to the buyers. As shortly as the product is renowned to the buyers, the purchasers are eager to buy them even at a higher price. It may furthermore refer to the market where there are powerful potential competitors.

(b)Slow Skimming: It mentions to commencing a new merchandise at a high cost with reduced grade of promotion. It furthermore mentions to the position where the company's brand is renowned to the purchasers and they are eager to buy them even at a higher price. It may furthermore refer to the market where there are couple of competitors.

(c)Rapid Penetration: It mentions to commencing a new merchandise at a reduced cost with high grade of promotion. This marketing strategy is adopted where the company's brandis unknown in the market and where there are strong potential competitors.

In latest Amerchandise group investigates these criteria in conjunction with specific performance obligations to determine a product's final configuration and components content. Some of these decision-making methods are more rigorous than others, but all need constructive interaction between some engineering disciplines. In single product enterprises, the cost of production can be compared directly to the price of the product, regardless of the method used to calculate the cost of production. Determining the relationship between cost of production and the product's price in joint product enterprises is more difficult. A joint product enterprise in one in which two or more products are produced from one production practice and the costs associated with the production of each individual product can not be measured with existing information. Once a number of components have been identified for development the development and use of improved structural components and constructing processes, including demand for new products with exclusive presentation requirements, demand for improved presentation or expanded life of existing products, ...