Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible. Some firms may have the objective to maximise revenue, this basically is when a firms aim is to achieve as high total revenue as possible and occurs when marginal revenue to equal to zero. Another objective of s firm may be a profit satisfaction, this is where a firm produces a profit which is deemed to be a reasonable level, which is satisfying to stake holders and is not maximising profit. The best example in a leisure market is a firm that has been recently set up and wants to survive so the first couple of years their target will be to make a profit and survive. If they try to maximise profit it would an unrealistic competition as
Porter’s Five forces model This section will analyse Porter’s five forces for the global luxury goods market by looking at the wholesalers/retailers of luxury goods as players. The report will take the end-user or customers as key buyers and manufacturers as key suppliers. Forces Strength Competitive Rivalry The competitiveness in the industry is relatively high due to the number of big and small players in the fashion industry. Particularly, in the high end, there are a good number of designers which compete with similar products within the same customer base. However, it is important to recognise that the competition in luxury fashion is not based on price but rather on image perception and brand value and quality.
What is Blue Nile’s strategy? Which of the four generic competitive strategies discussed in Chapter 1 most closely fit the competitive approach that Blue Nile is taking? What type of competitive advantage is Blue Nile trying to achieve? Blue Nile strives to offer high quality jewelry and competitive prices and also provide information about their products and provide guidance through the purchase process. They are trying to create a cost-based competitive advantage by having cheaper prices on their high-quality jewelry compared to traditional retailers.
SWOT Analysis Strengths The internal assessment of an organization begins by identifying the company’s strengths. A company has a competitive advantage over rivals when it is able to implement value-creating strategies using its own resources, capabilities, and core competencies. Ralph Lauren has successfully aligned their core competencies in order to meet demands from their customers and maintain a sustainable competitive advantage over competitors. Distinct Image and High Brand Recognition: Ralph Lauren is one of the most recognized brands in the world due to its premium product lines. With such recognition, Ralph Lauren has been able to expand its product offerings from not only men and women’s apparel, but also into jewelry, fragrances, and home furnishings.
AST1/Task 1 Tiare Rush Student ID#000305228 Strategies for Motivating Scooter Dealerships Company S is excited to be ready to enter the motor scooter market with our newly engineered scooter with much better fuel economy than all of our biggest rivals. Although our scooters cost a fraction more than the ones on the market today, we believe that the value added will make our company successful. I have identified here several strategies to help motivate the dealerships to help us to move our product. 1. Avoid Taking Business from your Dealerships Our partnerships with our dealerships are built out of trust.
ASOS also add 1790 new clothing lines a week and already have 50,000. This would help to increase sales revenue because customers know that there will be plenty of variety on the website, which would mean that they would buy more things. The security on the website would also help them to achieve their aim because it helps build trust between the customer and the company, this could mean that more sales are done as a result of this, which again helps them to achieve their aim. The website
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
Expansion opportunities Cougar Japan is still a prestige product company. However, in order to increase its market share, the Japanese subsidiary must move into lower price ranges as well. This is particularly important now, as the market for low- and medium-priced sports shoes is expected to grow significantly faster than the upper end of the market. Moreover, the rise of the yen has given importers a strong competitive advantage over Japanese manufacturers. Most Japanese marketers of sports shoes offer a number of basic shoe models at several price levels.
This allows customers from middle and lower class income earners, to benefit from their product. The company offers a wide range of products ranging from the smallest through to the luxury cars which makes it to capture a large market segment. In addition, the company has the largest revenue in India's automotive industry which gives it the strength to expand and implement its growth strategies. Furthermore, it has strength in its huge markets coupled with international growth strategies which are propelling the company to greater competitiveness. b) Weakness The automotive industries makes a lot of profit by selling luxury vehicles thus making Tata Motors to miss on the profit since most of its sales are of low cost vehicles which are either commercial or passenger.
To try to increase our brand awareness we increased our advertising for each brand to help improve our image for our target markets. Another contributing factor to our underperformance was our over production, we over produced SOLD and SONO starting out at a production level of $900,000 for SOLD and $100,000 for SONO. Regrettably this caused us to have excess inventory for both brands. By period four our inventory holing cost were extremely higher than the other firms our inventory holing cost was $1,059K for our firm O, compared to $74K for firm I. figure 1 has the comparison of the four firms inventory holding cost by a cumulative time scale. The customer perception of our bands was a problem for us, we were unable to position our brands right in order to make our