Apex Chemical Company Case

Apex Chemical Company Case Apex has to make up ones mind which of the devil sore compounds (electrolysis agent A-115 or charge lie in home oxidant B-227) the corporation should grocery storeplace. Based on the information poised during a cloak-and-dagger discussion with the President of Apex and during a conversation which took pop among Apex Executive Committee, I propose the launching of B-227. This closing takes into account the results of analysis of market size of it and trend, market acquaintance and share, value proposition, communication cost and forecasted tax income for each of the deuce compounds. Market size and trends The electrolysis agent market is $10 one million million a stratum, with at least 95% occupied by Hamfield (in blue in the graph below) and the rest (in pink) occupied by other small competitors. The market is fixed and the customers are well-provided with Hamfield product; consequently it is pass judgment that the abutting yea r market share lead look the corresponding as this year. It pull up stakes be difficult for Apex, which has no previous experience in this market, to gain shares from Hamfield. The best they good deal expect, if entering the electrolysis agent market, will be to gain the 5% of the market which doesnt live to Hamfield. On the other side, there is a softwood of strength in the $40 million a year plastic oxidizer market, which is split into 2 segments: the important-prednigones and the stigones.

This market is expanding1 and, in the same time, clients are switching from stigones (which declines with 10% annually) to be tas. As can be seen from the table below, be! tas market is expected to increase with $3.6 million next year. Compound B-227 is part of the beta group. There is a lot more room on the betas oxidizer market ($3.6 M only in new market) compared with the electrolysis agent market (potential of $0.5 M), accordingly Apex should market B-227. 1 for calculations, I considered a outgrowth rate of 5% annually for the entire plastic oxidizer market | |Stigones |Betas...If you want to give out a full essay, order it on our website: OrderCustomPaper.com

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