These expedite delivery services created value for businesses due to shorter lead times, increase in productivity and greater satisfaction of customers. More so, for any organization to that wanted to enter the logistics industry, it must be able to purchase its own freight liner, airplanes and truck. This required very large capital investment so organizations such as FedEx and its competitors enjoyed low threat of
Pros: · Prime Property. A leasing office space option provides a business with the chance to rent in an area with a good location and high image. If your small business is dependent on location and image, such as retail or restaurants, the leasing option is much more affordable. · Free-up Working Capital. With your money not tied up in real estate your business can respond to opportunities in the market.
The cost to open new business is high and not everyone can afford it but it is also important to take into account that this is a commercial area near a college campus; therefore it attracts more business than other areas. 4. Bargaining power
If not there a shopping mall where thousands of people shop every day. They can profit from all holidays shoppers, visitor and mall workers. Some weaknesses with opening a store on a large scale would be not having control over the bigger problems. Since the company hasn’t quite yet managed to control the smaller issues, I would think it would be bigger fires and more waste occurring. Keeping up with the demand of the operation on a bigger scale will require more attention to detail with the order of operation.
What works in the home country generally may not necessary work in the host country. Wal-Mart boosts its reputation with a well established supply chain management and a pool of highly trained employees which they called ‘associates’. Perhaps one of its more obvious strengths is the strong branding that it has in association with high quality, low price products. Having said, its global expansion is still limited due to economic and political instability in countries where it serves as well as stiff competition it faces with local rivals. Initially, Wal-Mart depends very much on its ethnocentrism approach.
The Reason: I was shopping at Walmart today and as I do every time I shop there I ask myself, “Why am I shopping here?” The reason is simple, while I like Target better (because I think the quality is better on some things), the prices and large selection and convenience of Walmart simply cannot be beat. 2. Which of the mission statements do I feel does a better job representing the company and why? The mission statement that I feel does a better job representing the company is Target. The reason I believe this is because it is operative, and drives initiatives, while short and simple it is not.
It also benefits the consumer by allowing them to cut back on gas and other expenses by shopping online. The bigger the company, the bigger the chance that they offer e-commerce as well as a brick and mortar based business. More retailers have begun to view the internet as an opportunity rather than a threat. A consumer can find just about anything online, from groceries to real estate. One of the benefits of e-commerce is that it is quicker, easier and less expensive to start up and begin trade.
Blitz is a small specialty shop chain owned by Dalman and Lei. The strength of Lei and Dalman committing to a large scale expansion of the company is the fact they have a strong business plan in place that is showing success. By opening a chain outside of their current city this would allow Blitz to appeal to a wider range of customers. Expanding within the same area this may cause a cut in the amount of customers that visit other established shops but they still missing out on money that could be earn by spreading their wings more. A weakness of Blitz committing to a large scale expansion is the fact that their current business plan seems to be working just fine because they have made their first link of chain the training camp for their new hires.
The businesses will also benefit from a larger market size, again creating more potential. This is particularly useful if their home market is saturated with similar products yet there product is useful or necessary, as it is likely to be wanted by the potential customers in the countries being entered. Entering a less saturated market will also mean that there is less intense competition, a benefit that Mothercare experienced when entering in to countries such as Poland and Bulgaria. These countries also have an increasingly developing infrastructure and economic growth, increasing the prospects of businesses such as Mothercare etc being successful. A bigger business will also mean they experience economies of scale; bulk buying will give them a price advantage and they will be less affected
Developing countries also benefit as the population get access to employment and the development of new skills, leading to more money being spent helping the economy to improve infrastructure and services improving the quality of life in the country. TNCs that do well in the developing countries raise the status of the country encouraging investment from other well know transnational corporations and most importantly it will improve the country’s economy drastically as valuable export revenues will be earned. On the other hand, most developing countries do not benefit as much as developed countries do, for example, sometimes much of the employment is low paid, low skill and long hours meaning that the country does not develop economically or give the opportunity to develop their skills. Another drawback is that there has been large negative press about TNCs and the poor working conditions in which people operate in; this includes the lack of safety requirements and the long hours of working. Transnational corporations like high profit, and countries where there is less regulations, therefore they often go to countries where there is less ‘red tape’ with regard to safety leading to TNCs