Relevant financial information contributes to sound business solutions. For example, the predicted future costs and revenues that differ among alternatives are essential to financial decisions. Currently, Guillermo’s patented finishing coating does not have a large market audience as does the flame-retardant coating. Thus the company has determined that it could purchase another finishing product that would add the same amount of value to its custom furniture. This alternative requires consideration of the opportunity cost of eliminating in-house production of the finished coating.
Niche markets can allow for higher margins; however new entrants effectively position their product to a low volume high price model limiting their sales volume. Consequently, J&J should not overlook the low end segment of the consumer market,
However single sourcing can be devastating for a firm, worst scenario the firm would not receive any products. The supplier could also lack the capacity to meet the demand from the buying firm regarding such matters as quantity and quality. Multiple sourcing is more common when the firm seeks to enhance competition and flexibility. The cost will be reduced because of competition and the risk with not getting any products will be reduced. Also the buying firm will get more
When the buyer power is low the customer doesn’t have many options and will pay what the current price is for the product. Right now buyer power is low for UMUC haircut’s since they do not have much competition in the area. With new competition opening up in the area this could affect the competitive advantage in the buyer power for UMUC haircuts. Supplier Power is strong when UMUC haircut’s only has a few suppliers and the more help you need from the supplier, in turn driving the prices up. Suppliers have low power when UMUC haircut’s has many suppliers to choose from and can bargain to... Five Forces Analysis
Privatisation is the selling of public sector assets to the private sector in order to introduce competition and improve market efficiency. One argument for privatisation is that private companies are incentivised by profit by cutting costs and producing more efficiently. If you work for a government run industry, managers do not usually share in any profits. However, in private firms managers will usually receive a share of the profits motivating them to work harder, and as they are interested in making profit they are more likely to cut business costs and aim to be more efficient. Since privatisation, companies such as BT, and British Airways have shown degrees of improved efficiency and higher profitability due to the competitiveness within their respective industries.
One example of a business where IM will not work is a business that that sells electric wheelchair. Additionally, companies looking to sell products to a wide range of people and are looking to have large number of sales will not find IM as useful as outbound marketing (OM). While IM is good because it is cheaper to imploy and brings in higher value potential customers, it only captures a small market. OM should still be pursued if a company is seeking for large sales and large customer base. The most optimal marketing strategy may still be to apply both methods of marketing with the right
3. GLC should consider if this plan would even be effective with the transportation of goods using this mechanism when there are quicker ways to ensure delivery. Also, they should consider if the customer will be faced with higher costs for the same product they were receiving before. Just because the method of transportation became more expensive, doesn’t mean the value of the product should increase. This is almost a guaranteed way to lose customers.
The value from the information obtained from the market research and having it on hand will outweigh the cost of obtaining that information. It will be outweighed due to the fact that it will clarify the problem and discover possible opportunities. An example of the problem would be the lost of market share and shareholder value, and an opportunity would be, what new products that are appealing in order to retain the existing customers and to attract new ones. With that information, they would also gain a competitive advantage because they will know what consumers are looking for, which will eventually trickle down the chain to raising the shareholder value if implemented correctly. Step Two: Define the Problem The problem is that we do not know what the customer wants in a healthier chocolate option.
Second we have competition. Having competition creates a very efficient economy. For an example if you and I were both selling scissors, and I was selling the exact same ones for a less expensive price, it would force you to have to compete and regain an edge against me. By doing things like creating better quality scissors, making them more readily available at more locations or trying to compete with other people low price in this case is me. Thus creates an efficient economy.
The other barrier to entry faced by potential firms is product differentiation such as differentiate their products through packaging or secret ingredient in order to persuade customers that their products are more unique and superior than rival brand. For instance, L’Oreal launches Garnier hair colouring line, Belle Couleur that help men and women to be gorgeous and to express their personalities through cosmetic. (c) Explain with reasons, the likely demand curve(s) faced by the individual firm in the hair care industry. (3 marks) Price Price D D --------------------------- --------------------------- ------------------------- ------------------------- P2 ---------------- PB