Apex Company

Case Study-Innovation:

The chemical manufacturing company, Apex should commercialize with the Compound A-115 product. This is because the product has fewer competitors in the market unlike the Compound B-227 product. According to the information provided, the product Compound A-115 has only one competitor that specializes with the manufacture and distribution of Compound A-115 product. The market of the product Compound B-227 has three competitors and this poses a greater threat to Apex Company.

The other reason why Apex Company should commercialize in the product Compound A-115 is because this market has fewer threats than the commercializing of product Compound B-227. The threats of the product Compound A-115 to Apex Company is that the organization is not known by the consumer of the Compound A-115. The organization can resolve this through developing strategies that market and distribute the product efficiently. Since the competition is low the cost of advertising this product will be relatively low. The other threat that faces the product Compound A-115 is that market size is 10 million which is lower than Compound B-227. In the market of Compound B-227 however, apart from Apex industry facing the threat from three competitors, the product faces a threat of producing stigones that accounts for only 40% of the markets. In addition to this, Apex Company faces a threat of operating in losses since the market for the beta stigones is declining and has caused the company to lose 10% of its sales annually.

The other reason that Apex Company should commercialize on the product Compound A-115 is because the organization has all the required technical resources to break through the market. This is important to the organization since it has an opportunity to be a market leader of commercializing the product Compound A-115. The other significance of commercializing the Compound A-115 is that the consumers of these products are loyal unlike product Compound B-227. This therefore means that the Apex organization can be sure that their earnings will increase over time since the company has more product potential in the market. According to the information, Apex Company has the appropriate resources to manufacture for beta stigones. The problem with this is that the market of this product is decreasing. This therefore implies that Apex Company should take advantage of the opportunity available in commercializing product Compound A-115 so as to maximize its profitability.