The Glegg Water Management

1. The Glegg Water Management is now facing the challenge of repositioning their key product, E-Cell, which is a breakthrough technological progress in water treatment. Despite the superiority of the technology, the management team needs to find a radical approach to penetrate the market and develop a strategy to make E-Cell the industry standard. 2. Competing Resins Technology: As mentioned in the material, traditionally, caustic chemicals were used to flush away the impurities and regenerate these resins. In these systems, the mixed-bed ion-exchange stage was preceded by separate cation and anion exchange vessels. As applications became more demanding, it was clear that chemically regenerated ion exchange systems had limitations. ” “Ion-exchange resins are typically styrene and divinylbenzene copolymers cross-linked to form beads between 0. 03 and 1. 0 mm. The beads are converted into cation-exchange resins through a sulfonation process, or anion-exchange resins through chloromethylation. “EDI removes ions from water using conventional ion-exchange resin, but with a significant benefit--an electrical current that regenerates the resin bed continuously, eliminating entirely the need for periodic chemical regeneration. ” 3. The key sectors listed in the Power Generation of Exhibit 2 are power plans, chemical industry, manufacturing, petroleum industry and paper industry. They share in common that they all need of quality water treatment equipment that is with high flow rate. And these key sectors are all facing the challenges of environmental protection, which was drawing attention from either the public or the government. Hence, there is believed to be a potential market in all the sectors under power generation. However, different industries may have different requirements on their needs and standard of water treatment equipment. Followings are those influencing buying decisions: ? In the material, it says that the typical power generation water treatment required high flow rate. However, to which extent and whether all of the specific sectors fall into this categorized description of a “typical power generation water project” is subject to further investigation. It is possible that power plants and petroleum industry requires the highest flow rate, while chemical and some small manufacturing needs lower flow rate, where E-Cell’s competitive advantage in scale will be less remarkable. ?Different sectors may differ in their required standard of water quality. ?Some sectors value the E-Cell’s trait of being scalable. For example, in the manufacturing sectors, the end-users may want to adjust the capacity of the small increments according to their different scale of project in different periods. And the significantly less space will help the end-users of the industry to save more cost. ?The other specifications that the case is silent but could influence the buying decisions are: whether the EDI technology will 4. Glegg basically functioned as a link between the technology suppliers and the end-users. ?Through customizing the technology components from the suppliers, Glegg provided the clients with industrial water treatment solutions, including clarification, filtration, roughing and polishing, and etc. , tailoring to the specific needs and requirements of the customers. Glegg water company provided with their clients with a comprehensive design toolkit and a very good customer service which would follow the client’s project from start to finish. Currently, the Glegg Company has a major breakthrough in its development of EDI technology. The undercultivation of the industrial water treatment market, the rising awareness of environmental protection, the prospering of EDI’s targeted clients’ industries such as electronics, and the breakthrough development of the technology itself signified a huge market potential for E-Cell of Glegg company. In addition, according to the statistics, of the 2% of the total possible market of EDI, E-Cell has taken a promising share of 50%, which helped laid a solid foundation for the future exploration in the field. Therefore, if Glegg want to reach their billion-dollar goal, Glegg will need to focus more on the market of E-Cell, instead of the more generalized products as they used to. As a result, what Glegg will do for their customers may also change accordingly. Change in personnel and expenditure structure. As noted, currently, 50% of the employees are in manufacturing, only 10% are in sales, and the rest of them are in marketing, R&D and management. However, since E-Cell is believed to be a technologically superior product which was resistant by the market as many good new products had encountered, this product will be the key to increase the total revenue of the company, and marketing this product should be the priority in the strategic plan of Glegg. Therefore, manufacturing expenditure should be cut, while the marketing expenditure for E-Cell should be increased. In addition, as noted in the material, both in electronics and power generation industries, the key engineers and contractors are very influential in the buying decision of water systems. Therefore, to penetrate the end-users, highly trained and quality sales people are very important as they need to maintain good relationship with those key engineers and contractors.

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