Saturday, February 23, 2019
Problem Statement of Lubricant Industry Essay
Lubricant industry is a very warring industry beca character many companies around the world have created their own common soldier label and competition between the well-known product in the grocery such as Shell, Castrol, Royal Purple etc. The availability of a vast range of products at competitive prices has been a major ingredient in attracting customers to lubricants commercialise. As a result, many manufacturers of lubricants, including biggish corporations, have been crisply pursuing international and Asia markets. Moreover, the market share of the industry is monopolized by big corporations, such as, Petronas, Shell and Caltex.The big corporations and manufacturers have the advantages many small companies neglect of, such as, expensive advertisement, sponsorship and expert management team. For the small businesses to tap into market that has been monopolized by big corporations is very difficult for companies. Psychologically, consumers always and only use products th at are recommended by peers or they have been using it for a plot (2). Because of this reason, products that are very new will be hard to market their distinguishs into the market effectively.The user confidence is very low because weak brand image, uncertain quality and doubtful suitability. Besides that, counterfeiting has become the major bring down for various types of products in the market. As technology become more sophisticate and cheap, many counterfeiters easily copied products that are well-known and established. This also becomes a line of work by Moto7 Distribution S/B to overcome as it has to debate with the original products and counterfeit products, hence making the market shares become lots smaller.