However they would have notify customers of the use of the technology in their stores, as underage people may wish to avoid the stores which could lead to a decrease in sales from the stores who use the system. The storage of customer details may also provide opportunity for the company to benefit, as it may allow them to send customer advertisements or flyers, promoting their business and special offers analysis. The convenience of the technology is vast, but the initially costs as well as maintenance may be large, and to justify the use of the technology it would have to be ensured that it is worthwhile, depending on the size and revenue of the store. Also if the technology was not reliable it could lead to further large costs for the company and would be very inconvenient to employees and possibly customers, possibly leading to a decrease in sales
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales. It could be argued that it is not a good idea for Shearings to try and appeal to a mass market and move out of the niche market. This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the £2 million on advertising and the further £35 million they spent on expanding to accommodate the new customers and if it doesn’t work they are left with a huge cash outflow and no where near enough inflows to cover it. Another reason why I would disagree with their decison is that in mass market are huge competitor like Thomas Cook, which could be more appealing to customers, as it is a relatively known name or because they may be able to offer lower prices, this would lead ton o increase in income and would lead to several problems. Overall I think the decison depends on whether the move is affordable as at
I would have some difficulty ordering the parts possibly which could delay the repair but it would eventually get fixed and possibly much cheaper than calling a repair man. Conclusion: Using the creative process enabled me to isolate the problem and develop two possible solutions. After discussing the solutions with my wife we agreed that calling a repair man was the best decision because time is more important than the possibility of saving a few dollars. By using the creative process I have opened my mind to numerous ideas and developed two viable solutions. If I did not used the creative process, I may have overlooked the obvious problem and just replaced the refridgerator which would cost me lots of money.
As for foreign markets, I would suggest the method of licensing. This way Travel Wise can avoid the costs and risks of opening an overseas market and can avoid having to put time and money into researching a foreign market while still making a profit/garnering royalty payments on their product. Since Travel Wise already outsources the manufacturing of their current products and has good relations with their foreign suppliers, it would be wise to outsource the clothing to suppliers overseas. Building a manufacturing facility in the United States is costly and would require a lot of planning, and would be a better idea to add to long-term plans. Another reason to outsource the clothing is labor costs—the book states that labor costs in China (a country that Travel Wise already does business with) are less than $1 an hour, as opposed to $24.59 in the U.S. 2.
It does this because it means that it’s not using retained profits to purchase property as this will reduce access to ready funds. It also allows the business to move on quickly if the new market proves to be unprofitable. In addition, Ikea leases some of its equipment such as cash registers because it provides the business with the latest technology and remedial action if the machines have a problem. Through the use of leasing as a funding option, Ikea is able to increase profits, grow into new markets, remain liquid and solvent and use its assets efficiently, thereby meeting its financial
The alternative for this which most organisations will have especially ones like Coca-Cola will be to have a backup system in place for the assurance that if their main network went down then they would have a replacement so wont not lose any time or loss. There are also security and privacy issues when it comes to using the internet as a marketing tool which may lead to increased competition from other firms as the internet may leek knowledge of the organisations. There are high maintenance costs due to a constantly evolving environment and also there could be higher transparency of pricing and increased price competition, also non-price competition could come into this as they should use advertising as a tool to win customers and gain brand loyalty from them, for example with Coca-Cola if there were to give customers a better service and or better price on their products then they might gain brand loyalty from their consumers but if they receive a poor service and the products are expensive then the customers could move over to say for instance Pepsi which is a perfect substation and as this market is price-elastic it would be so easy for
I think that using common sense you can choose what product is good and which is bad and if you should go one route or if you should go a different route. In business you have to use your head but when it comes to for example his product then you are choosing a product with harsh chemicals or a product with less harsh chemicals, better for the environment, and good for the people using it then it should be common sense however many companies because of cost will go with harsh product because it is cheaper but they aren’t using common sense. I agree that in many
Often consumers will argue to ensure that they receive the best possible deal in which they will benefit all areas equally. However, when a consumer strives for a lower price, they must be willing to make compromise in other areas such as features and availability. If a consumer desires a vehicle in a specific color, they maybe have to pay more because it may not be available where they are located and must be transported. The increased cost might deter the buyer from what they are looking for and the they may compromise and purchase something different. Automobile companies strive to have available what the consumer is after but often outside circumstance may dictate and or affect a dealers stock.
Thus, they will lose their competitiveness in price otherwise the margin. Last but not least, due to the process of globalization, CEMEX and its competitors could well spread their risks. If one market is not performing well, they could depend on the other ones. So, assuming there isn’t a world-wide recession, the revenues of theirs will be more stable because of diversification. 2.