In a competitive company, in order to achieve a high turnover and economies of scale in industrial processes, the firm needs to establish proper dynamic framework that re combines both interpersonal and Ashland’s administrative skills to manufacture the required chemicals. In the provision of specialty services and modern functional ingredients, customer insights and marginal cost analysis is a major consideration .creation of sound comparative advantage and opportunity cost enables the Ashland company to produce high quality products that are sensitive to the market and that which touches on the customer value. Customer taste and preference is a major stake in establishing the specialty value and capturing the customer market share. in addition, short run channels of direct face to face interactions create value addition and chances of clarity for the Ashland’s products.
Information on sales call and trade shows is necessary to improve and identify strategic areas of target and to recapture consumer consumption opportunities. Sales metrics efficiency products other Ashland’s divisions and even environmental services can be expanded considerably through e-commerce and brochure system. E-commerce through intellectual property guidelines can necessitate faster interaction and information exchange about Hercules specialty services, resulting in commercialization. Technology can therefore offer economically competitive solutions to the firm and expand its capabilities in specialty chemicals production. Well designed brochures advance the frontiers of knowledge about the firm.
The core strategy of the firm is to establish and to be a leading chemical company inspired and that which is employee inspired .this means that the strategy captures diversity and inclusion together with community involvement. consequently, the mission statement outlines the sustainability of the firms products and quality assurance measures .this creates reach and reliability in the society as the products can be used with assurance of better standards and continual improvement, hence marginal benefits and pareto allocative and technical efficiencies that creates opportunities in the market share. The strategic resources of patent technology gives intellectual property rights benefit of production without fear of ill competition and counterfeits.
Brand name creates an enabling round for firm’s reputation in the competition arena and builds its image in the consumer market thereby increasing the sales volume and the entire output. Broad coverage expands network creating location economies of scale and widens the opportunity set hence super normal profits. In creating more touch with the ground, value network and productivity is of concern. Other commercial units e.g. valcoline and Ashland consumer markets creates dynamic combinatory chemistry of production to ensure maximum benefits to the consumer in terms of efficient chemical products. For instance valcoline products create value addition in the motor sector and expand consumer’s utilities thereof. All these therefore ensure a robust quality and results in high touch interactive experience.
In the SWOT (strength and weaknesses) analysis, establishment of a brand name carries with it comparative of improved consumer perception and shield to existing competitors. A brand name that does depict the expected quality from personal care products, food and beverages to pharmaceuticals can result into marginal increases in sales and consequent profit increase. Patent technology caries merits due to arrest of techno based entropy and changes in information systems (IS) as customers stay in a lock in positions always hence buy and use the Ashland’s chemicals. Customer support and availability expands market endowment and technical efficiency of cardinal nature. This in essence builds the firm’s capacity, expanding output. Easy installation reduces logistical cover and minimizes operation cost making the firm to maintain its isocost. On the other hand, the weakness of high rice tag threatens the profit space as a customer opts for other competitive products from other firms. This considerably reduces the sales turn over and competitiveness.
In the opportunities and threats, new product development advances uniqueness and monopoly benefits in the market share as marginal rate and investment propensities are reestablished. This consequently builds the foundations of the firm and the consumer takes the required pride in the company’s products. Expanding new technologies into other industries creates positive externality benefits of managerial nature and spill over effects. This consequently results into economies of scale in production of the chemical products by Ashland. In addition, system switching costs often reflect on the company as an expensive paradigm as it makes customers to consider staying in their original consumption points and makes other to continue using other products from existing pharmaceuticals. The challenge that the new technology might suffer acceptance by buyers is of considerable measure as buyers can be skeptic and irresponsive in consumption of technology. The inelastic nature of their demand can result into reduced profits and performance in chemicals production. Similarly, optimum goals ad objectives in line with the mission statement can be achieved by drawing SMART objectives.