Competitors likely would not want to risk losing current sales by adding features which would raise their prices. Threat from Buyers – Because Company G is able to sell the Little Wonder at the current market price , if not lower, the threat from buyers is
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
Another external threat includes economic slowdown. The economy can play a direct role in the success of an organization, and should be monitored accordingly. Another external threat is currency changes which can affect business and sales in other countries, another area that should be monitored closely. With limitless external opportunities in markets online CanGo has room to expand in multiple markets outside of online gaming, books, and the music industries. With online market growth the opportunities for CanGo are endless, a very important factor to consider in the company’s future growth.
One of the reasons companies outsource workers, and thus help imperialize foreign countries, is for cheap labor. Western corporations can have multiple sources for a given item, in order to allow continued production once one region realizes it is being treated unfairly and strikes. Oddly, it is argued that these companies could survive without any foreign connection—capitalism without imperialism. But, this would lower profits and prevent “advanced capitalism.” The decision to claim that cultures with what is considered modern technology is defined by military power rather than which culture is actually superior. It is this force that essentially created this gap.
The question we all as taxpayers should be asking is whether or not we will see a good return on our investment. The Democratic proposal is a bit more negotiable since the taxpayers would at least own an equity interest in these companies. However, even that modified plan seems too expensive and way too intrusive. We should consider alternative plans that are not quite as intrusive to market mechanisms such as the Lindt plan. The Paulson plan also seems to signal a dangerous shift away from liberal market mechanisms into an age of neo-mercantilism.
Both strategies failed, therefore it is necessary to analyze what were their mistakes. • Core Competencies: Trexel has the know-how to development of different product better than its competitors (lower production cost), so it is necessary to consider the cost savings of the different alternatives. • Competitive Advantage: Because of Trexel has the know-how to produce high-quality products at low production cost, they are better positioned that its competitors. Also Trexel have protected their intellectual property through patents, which allow maintaining a sustainable competitive advantage in the time. For these reasons, it is necessary to analyze the competitive advantage of the different options presented.
Although the Sarbanes-Oxley Act was passed by Congress for positive reasons, there are many disadvantages that come along with it. A major issue is the cost of regulation, especially for smaller companies. Expanding internal controls delay the timeliness of financial statements by adding processing time to accounting functions. To follow the SOX, companies would need to separate duties, causing an increase in personnel. The SOX also calls for additional audits which increase business costs.
“The most important provision of this act however is the prevention of anticompetitive mergers. This occurs when a company buys a competing firm. While most mergers allow the companies to create better quality goods at less expensive prices, some mergers limit competition and make price fixing easier. This part of the act was designed to prevent mergers from creating monopolies” (Ellsworth, 4). This section of the Clayton act wanted to promote free trade and keep smaller businesses from getting too greedy.
Assuring competition is critical to maintaining low prices, high quality, and business efficiency. Blair and Lopatke (2008 explained that by eliminating the competition, dominant sellers can increase monopoly profits and deadweight of social welfare losses can occur (p. 442, 439). But not all monopoly companies causes harm, some companies like the water utility, natural monopoly, and is regulated by the government (McConnell, 2012, pp.
The regulations make competition a necessity which in turn keeps the prices to consumers more affordable and competitive. It also helps out the company suppliers. The regulations make it so companies cannot dictate who their suppliers supply to or make deals