By focusing on sales, service and execution, which helped the company, achieve considerable sales growth in the past few years. Lowe’s Company, Inc. is its only direct competitor up to date. [pic] Source: www.christopherlinker.com Since the market is dominated by Home Depot, Inc. and Lowe’s Company, Inc., buyers do not have much choice in selecting the company for home furnishing. Besides, Home Depot and Lowe’s offer advanced product features and quality that are not currently offered to the customers by other companies. Thus, with limited choice of company selection for home furnishing and high switching cost, the bargaining power of customers in this industry is quite low.
Adding to that the lows median income (lowest among the 5 projects) can be among the reasons why Walmart has performed well with its low price policy. Brand Awareness impact: While the closes Target is 80 miles away from the project store, it can be assumed that Target brand dose not have a well-known brand awareness. It will take time and investment for Target to increase the brand awareness and also compete with established brand such as Walmart; all expected marketing investment on brand awareness would contribute to 25% sales increase in 5 years. Further comparison with other projects in
With a debt to equity ratio as above average as Verizon Communications’, the probability that the company will be able to pay off its’ debts if a liquidation was to occur is unlikely. Some factors that may be a contributing factor to Verizon Communications’ currently high debt to equity ratio is the acquisition of other firms, the purchase of complete ownership of Verizon Wireless, and recent deals with Netflix. However, according to macroaxis.com, Verizon Communications’ probability of going bankrupt within the next two years is “less than 46%” (2014). Verizon’s closest competitor, AT&T has about a 43% chance of going bankrupt in the next two years; many of the telecommunications industry companies are within the 43 to 50 percent range of bankruptcy within the next two year (macroaxis.com, 2014). Also, research analyst, Arie Goren, states that “Verizon will continue to benefit from the remarkable leadership of its wireless segment”; he further explains that “Verizon has compelling metrics and good earnings growth prospects”
For a 250 million sq ft plant the rate per square feet comes to 0.25 whereas for an 80 million sq ft facility this rate is 0.43. The variable cost of this smaller plant is also about 150% of the bigger plant. So a new player trying to enter the industry with a smaller plant faces huge cost disadvantages. The other individual processes also seem to be scale intensive as evident from the importance of MES at each level of value chain. The government duties also make it difficult for small players to enter Canadian market.
In which round will demand for performance products exceed the demand for size products? In round three the demand for performance products will exceed the demand for size products. 4. Explain how increasing first shift capacity can reduce per unit labor costs. Increasing first shift capacity can reduce per unit labor costs because you can produce more products in less time which reduces the labor costs.
The primary customers of KR+H cabinetry are those who want to optimize the amount of useable space in their homes that stock cabinets cannot provide. The industry in 1992 was comprised of 61% stock cabinetry, and custom cabinets similar to those produced by KR+H comprised of only 20%. This is down from 26% in 1989 resultant from poor economic conditions between 1989 and 1992. KR+H uses a direct sale to consumer approach that only accounted for 2% of total industry sales. Industry sales by use of cabinet dealers and distributors contributed for 31% and 30% respectively.
Livoria Sandwich Inc. is operating in a highly competitive and fast growing market. In 2011, the company had only 0.29% profit margin. In order to seek competitive advantage and gain market share, Livoria needs to cover its current cash shortage before going any further. In this memo, three strategic alternatives are evaluated; and recommendations and implementation plans will be given to cover Livoria’s short-term cash shortage, gain market share, and earn $1.1 million net income by 2014. Situational Analysis As shown in Appendix 1; in 2011, Livoria generated 53% contribution margin which is almost 10% higher than the industry average.
Another immense strength for VSUW is the high percentage of revenue that is invested in programs to help the community. According to VSUW (2013) “less than 10 percent [of revenue] is spent on administrative costs with 90 percent invested in local programs and initiatives” to help those in need in the community. Weaknesses In preparing financial statements often times management has to make estimates on the numbers (Valley of the Sun United Way, 2013). This is a weakness because the “actual results could differ from the estimates” (Valley of the Sun United Way, 2013). Another weakness is that this non-profit “invests excess cash in investment grade marketable solutions” (Valley of the Sun United Way, 2013).
(I do support the Startup Visa types of efforts - but I worry that they exclude far too many people - and that innovation comes from the most unexpected places - not just from folks with technology degrees or who have been vetted by venture capitalists) Collapse this post Why Not Let Immigrants Employ Americans? Sehreen Noor Ali makes the case for visa reform: In 2005, immigrant-founded publicly traded companies were worth over $500 billion and employed over 220,000 people in the U.S. Even small, venture-backed tech companies create an average of 150 jobs, many of which pay Americans higher than their competitors ... [But no] more than 140,000 employment-based green cards are distributed per year, and only a subset of skilled workers and investors who have “specialized knowledge in a field of human
Its no surprise that China is one of the most Industrialistic country with over 1, 330, 044, 544 people ( as of July 2008 Source: www.google.com ) which in my scientific analysis says nearly 700, 000, 000 are in the work force and within nearly 100, 000, 000 or less (much, much less) are in agriculture or livestock. Thus this is how China has become one of the worlds super powers. When you look at the numbers it makes no sense. But to a economist (or a really smart person ) the meaning is clear. More people = more workers = more money.