Essay About New Compounds And Different Markets

Apex Case Analysis
Apex has been given the option of choosing between two new compounds to bring to market. Each compound is impressive in its own right. However, each does not offer the same potential for long term growth and profitability to Apex. The two compounds A-115 and B-227 are in two different markets and have different characteristics that make them attractive options. However, Compound B-227 emerges as the clear choice to bring to market.         Apex takes pride in bringing innovative products to the market. A-115 does comply to this growth strategy better than B-227, however its market is small and saturation. B-227 can be brought to the market as an innovative product by Apex if it is marketed as such. Even though the sales of stigones are decreasing, the market for plastic oxidizers are increasing. Apex can avoid this loss of market share by manufacturing a superior B-227 compound.        The electrolysis agent market is a $10 million and stable market. Even with a new product, there isn’t much room for growth because most customers are satisfied with the current product offerings. The plastic oxidizer market is a $40 million and growing market. The market is segmented by beta-prednigones which occupy 60% and stigones which occupy 40%. Currently, Apex only produces stigones, which are responsible for 25% of Apex sales. However, Apex has been losing 10% of its sales every year to customers switching to beta predigones. The stigone compound that Apex currently produces is in the declining stage of its lifecycle. However, the beta plastic oxidizer market segment is growing and there is potential to maintain current revenue as well as grow potential revenue. There is at least a $24 million segment of the market that Apex has yet to tap into. Additionally, it is a market that Apex already dominates in. Producing B-227 allows Apex to gain market share in the beta-prednigone segment while also retaining and recapturing customers from the stigone segment. There is strong competition for both markets. The A-115 compound is an electrolysis compound. Currently there is only one competitor in the electrolysis agent market, Hamfield. According to Hamfield research, over 95 percent of Hamfield customers are satisfied with its products. Although A-115 is superior to what is currently available in the market there is no guarantee that customers would gravitate to it given their current satisfaction. Additionally, Apex would be a new contender in the electrolysis market and would be going against an established and well known brand. Compound B-227 is a plastic oxidizer. The plastic oxidizing market currently has three strong competitors and six off-brand competitors. Apex currently dominates the plastic oxidizing market, but is currently losing sales to other companies who produce oxidizers that are beta compounds similar to Compound B-227. As a leader in the market, Apex has the opportunity to start manufacturing a product that it previously hasn’t in a market that it already has a good reputation.