In which this can lead to downtime for the business and its users. Most companies rely on their network and cannot afford to have any downtime at all; therefore, it is necessary to have the correct topology to help make your business profitable. A bank or a major business depends on having a reliable network that will not have a significant amount of downtime that would affect their everyday business. For the second scenario XYZ Technology Consultants, I also think that Ethernet would be the better choice here. With the amount of floors, being occupied the reliability of using CAT 5, wireless, or Fiber Optic lines to ensure fast and reliable data transfer would seem to be necessary.
The strategy of Costco was low prices, a limited product line and limited selection, and a “treasure hunt” shopping environment. In terms of pricing, Costco was known for selling top quality brands products at prices below other wholesale or retail outlets. Costco kept prices low to members and capped margins on brand-name products at 14 percent and 15 percent as well as on private label Kirkland signature items. However, unlike Wal-Mart or Target that provide wide ranges of product selections, Costco provided members with a selection of only about 4000 items. The product range did cover a broad spectrum of categories but each category had a limited selection and products were usually packaged in bulk and targeted to large families and businesses.
Weakness: For Nucor one of its major weaknesses is they are centrally located in the U.S. All of their plants are basically doing business right here in the United States. In the case study this posed a problem for Nucor because they were not able to compete with its competitors for the overseas business. Nucor prides itself on keeping cost low for its customers. However, the shipping and distribution cost would be very expensive and the cost would have to be passed on to its customers. Another weakness, if the demand for steel diminished in the U.S. past history showed it could cripple Nucor financially.
Many costumers is one of the plus that they give to Wal-Mart because this means that they don’t have to go store by store catching all the specials that they have. In the other hand, they like it because they go to one store but get the specials from all of the other stores. Wal-Mart’s economics has a very strong strength which is the one that offers the customers low prices on all the products. There is a comparison of the stores and there is an average price of about 15 to 25 percent lower. With the great size of supply chain
I think that Cosco’s biggest weakness is that they are not overly forward-looking. Their mission statement, “To continually provide members with quality goods and services as the lowest possible prices.” does not tell who Costco is or where Costco is going. Gamble and Thompson (2009) suggest that mission statements,. Costco has not really addressed their competition, Sam’s Club and BJ’s. They have planned on expanding their business domestically as well as internationally.
Monopoly and Price Discrimination What we called monopoly is the sole seller if the product and that product do not have close substitutes. Monopoly can control the prices of their goods, but their profit is not limited because high prices reduce the amount that their consumers buy. The most important cause of monopoly is barriers to entry. The three main sources are owned by a single firm, the government gives a single firm the exclusive right to produce some good or services, and the cost of production makes a single producer more efficient than a large number of producers like the distribution of water. Monopoly is the sole producer in the market; its demand curve is the market demand.
In fact, those “growing” companies are not truly “growing” because that even if they are still making profit, they are losing consumers and market at the same time. Especially those companies who owns irreplaceable resource and products for now, they should have a clear cognition that no product is indispensable forever. In addition, companies always narrow themselves to a limited area so that it is hard to have extraordinary improvement in their products. In order to keep their competitiveness in this rapidly developing age, asking for trouble is necessary so that companies will be pushed to develop products to reach higher level of consumer satisfaction. It is important to focus on customers and customers’ needs instead of just persuading customers to make the exchange.
Digital Domain also uses PERT charts and GANT charts to help their managers complete contract projects on time and on budget. To help stay within budget this service company uses simpler tools early in their production using fewer resources while still maintaining high quality goods resulting in “lean manufacturing”. Digital Domain also has its weaknesses. The company is a third party to Industrial Light & Magic (ILM) which gives them limited ownership rights. Digital Domain Due to the limitations on time and budget of fixed contracts, the quality of their
For example, supermarket channel is fragmented and thus didn’t have much of a bargaining power. On the other hand, mass merchandisers like Target and Wal-Mart had some bargaining power due to the huge quantities they buy. Moreover, there was no threat of backward integration as retail channels can’t go into the bottling business or concentrate producing business. Bargaining power of suppliers is low as the raw material can be purchased from many suppliers. Packaging manufacturers had little power as CPs negotiated contracts for bottlers and exerted some power due to their size and brand name.
Avoidance may also be the best strategy to be used in such a case because the individual’s annual earning is comparatively very low and price of the business is 2-3 times more than annual earning. He has to take help from the third party for external support. 2. Why is that style appropriate? Collaborative style is an appropriate style for both the parties that is the individual and the external supporting party for the purchase of the business.