Another threat of substitute could be companies hiring in house people to save costs, in which case they will have to compete with them in terms of attracting talent as well. Freelancers seem to be another plausible substitute outside the industry. This shows that there’s a high threat for substitutes. Bargaining Power of Buyers: In this industry, some buyers are buying in volumes that are large compared to the vendor. (“Huge tended to
The weakness of Kudler Fine Foods is that an IPO (Initial Public Offering) has many inherent and potential weaknesses that must be examined prior to selection as a means for expansion. An IPO is the first sale of stock by a company. There are many advantages and disadvantages for the Kudler Fine Foods to go public through the IPO. The advantages include generating more capital needed to expand their three locations The IPOs are very expensive undertaking, and a large portion of any capital acquired will be lost to this cost. Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods.
FJR has discussed the research with management and highly recommends that they do not open any new locations until further research has been done in other areas. It is very expensive and time consuming opening new locations and Kudler does not have the financial means to do so just yet. What Kudler Fine Foods needs to focus their attention on is other competitor in the market. They can offer coupons or special promotions towards maybe the first of the month which will attract consumers into purchasing more products because most consumers get paid at that time. Kudler will also advertise to the Asian community by having advertisements in their language.
DEVELOPING PROFITABLE CUSTOMER RELATIONSHIP. It is a challenging time for most business leaders today. Leaders are demanding their company’s grow and so marketers are continually focused on driving their products and services into the hands of new customers. Unfortunately this intense focus on attracting new customers has taken attention away from established or past customers. It is measurably more expensive to attract a new customer than to retain an existing customer.
Risk Factors of Bloomingdales Risk factors play a major role in today’s economy. Since we are stuck in the stagnation period and do not seem to be recovering for quite some time, businesses have to come up with a proper marketing plan that will help sell their products. All businesses suffer from the same risk factors. Some common risk factors include: product quality, price, brand loyalty, competition, managerial skills, etc. Many customers are shopping at lower priced stores because the economy is not allowing them to spend extra money.
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly. Plus, the maintenance required to stay public is too expensive for smaller companies, forcing companies to look elsewhere to raise capital. Rising costs persuade large numbers of companies to exit the public markets to sidestep SEC regulation, creates two problems. First, the overall economy could suffer because corporations limit investment projects due to the higher-cost sources of capital to fund potentially new operations. Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important.
This is because the company will need highly skilled workers to maximise production without a large range to choose from. If there are not enough highly skilled workers it can again lead to a lack of productivity and the company may not be able to reach their long term objectives which will require a highly skilled workforce. By constantly monitoring the workforce plan and updating it the company has a better knowledge of what type of employees they need, this can be key due to the lack of skilled professionals because they will not spend money on highly employees who they do not need. One major internal influence is the fact that Cameco work in
Competition in the market place is one facet that drives the capitalistic system. Without competition a business would not have any checks and balances to control pricing to the consumer. Since businesses compete for consumers businesses must market its products and services so it will entice consumers to buy its products or services. If a business prices what it wants to sell too high consumers will likely go to a competitor instead. To be competitive businesses will have to research local competition and set prices as-well-as stock product that will compete with any other businesses in the area.
Since the snack foods industry was very competitive, one of the main business risks derives from the competition in the markets. New players of the market would have a big influence on the Hill’s operations on lower price offering and lower production cost. Firstly, the company couldn’t rely on price increases in a high rivalry industry. Secondly, with the increase of competitor, Hill would face the decrease in its potential profit margin, hence, extremely high efficiency would be required and tight cost controls were necessary conditions for success. Another business risk should depend on the position of economic and the lack of productions’ diversification.