Soren Chemical: Why is the New Swimming Pool Product Sinking Harvard Case Solution & Analysis

SITUATIONAL ANALYSIS AND DIAGNOSES

COMPANY:

The company has specialized in selling a wide spread variety of lubricants and industrial chemicals and chemical solutions for treating drinking water and waste water. The top management of the company has made its back breaking efforts in order to expand the overall business of the company efficiently and effectively.

Thus, this has led the company to secure a considerable market share in the entire industry as well as this has also allowed the company to earn the revenues of $450 million in the financial year 2006.

the management of the company is off the view that this strategy would be essential in fuelling up the overall growth of the company.

Later in 2002, the company has diverted its focus towards from business to business strategy and shifted its focus towards investing selectively in developing brands for the products that had potential customer market.

In addition to this, lately, the company has identified that the market for pool water clarifier has a significant potential to allow the company to fuel up its overall growth as well as it would also allow the company to earn economies of scale efficiently and effectively.

CUSTOMERS:

There are two main segments of customers of the company which includes the commercial pool owner and the residential pool owner. The company has introduced its product KailanMW which has successfully allowed the company to capture a good share in the entire market, but the main drawback of the product of this product is that this product is only suitable for large pools (Commercial pools) due to its highly intensive ingredients. Therefore, the company was not able to tap into the potential market of small pool owners.

The management of the company has estimated that there are approximately 300,000 commercial pools in U.S as well as it has also estimated that there are 1000 water parks in U.S. In addition to this, the management of the company has also identified that the market of small pools has a massive potential to fuel up the overall growth of the company.

The company launched Coracle (a diluted version of Kailan MW) which was designed for the use of small pools. The management of the company has identified that the customer market for Coracle is more fragmented than the commercial market for Kailan.
The reports of the industry depicts that there are approximately 9,000,000 residential swimming pools in the United States. The reports also depicted that the company all the residential pool owners are highly considered for their pool maintenance, for which either they clean their pools by themselves or they hire professional pool cleaning services..........................

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