This is further encouraged due to the fact that there is cheap labour in LEDC’s so TNC’s are likely to move over there. They then need communications to contact HQ in a MEDC. This also increases shrinking world. The invention of the internet as allowed large amounts of information to be stored and distributed across the world. The internet is much quicker than any other form of communication and is also very cheap.
This means that the TNC can pay workers less, not worry about providing good working conditions. All of these factors greatly benefit TNCs because they can produce their products or components for a fraction of a price that they would have to pay in their country of origin. Another thing that has enabled companies to spread out over the globe is the fact that global communications and travel has improved. Emails make it much easier to communicate with colleagues in other countries and not have to worry about time differences. Satellite links have allowed people to have video meetings even if the people taking part are miles apart.
This is the by the far the biggest advantage over the internet. 3. Cost- many products or goods sold online are cheaper than those are sold in the shops. This is because cost of shop premises and sales staff are invariably bricks and mortar retailers.
Online news has low sunk costs, and it is very easy to set up. Many newspapers have been able to offer online services, such as the New York Times, Daily Telegraph and FT.com. This has made the market more contestable because new firms have been able to enter an industry with traditionally high barriers to entry. On the other hand, hard copy newspaper has higher costs of set up, as it needs high levels of equipment. Figure 2 shows hard copy newspaper market is dominated by 4 biggest newspaper firms, including The Financial Times, The Telegraph, The Times and The Sun.
Cost savings can be computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate. This system allows them to record business transactions accurately and generate financial reports quickly for management review. However if Rumble carry less transactions this means they won’t need to have computerised accounting system because it is very expensive for them to use. In this case it is best for them to have manual accounting system because it is reliable, cheap and easy to use. They can easily do their transaction without problems.
Through the use of the internet, email has became increaseingly popular because of its low cost benefit and its method of reaching mass customers, but like telemarketing there are laws and regulation that must followed to ensure people are not receiving spam email. Sales promotion is a tool used by organizations based on a short term objective that provides the potential customer with extra incentives that come in the form of savings, rebates and coupons that are consumer oriented promotions. Sales promotions use promotional efforts that are designed to have an immediate impact on sales and are media and non-media marketing communications used for a limited time to increase demand, stimulate market demand. Sales promotion techniques include promotional mix, personal selling, advertising, and public and publicity relations. There are three types of sales promotion strategies: Push, Pull, or a combination of the two: A push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling
This type of loyalty program wouldn’t call for a sophisticated or expensive IT infrastructure. However, offering internet service would be a large upfront cost. Establishing a new website would bring in several viable possibilities, like selling Broadway Café merchandise and offering free wi-fi service; all of which would contribute to making us a more attractive option. Supplier Power is
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
However, due to the higher prices, there is a certain segment to which these brands can appeal to – this strengthens the power of the buyers. Because of the high competition and many brands within the industry – there are low switching costs for the buyer. This is complemented by online shopping, which means that the retailers do not even need to be physically in the same place. This lowers the switching costs for the buyer and increases their power. The rise of the ethical social consumer and the information availability that came with the internet made the buyer demanding and less likely to develop loyalty towards a brand – this increases their power.
Also when it comes to money the cost of taking an online course tends to be lower than attending your conventional classroom course. But that’s not it when it comes to savings, savings are passed on through the advantages we spoke of earlier you will save money on gas, parking, bus or rail passes, and some classes offer access to e-textbooks that may cost less than traditional textbooks. All of these advantages lead to one thing and that’s more money being kept in your pocket and who among us can say that they don’t want to save more money. Now on the other hand you have your drawbacks which can be significant and really depend on the type of learner that you are and how familiar you are with technology. The interaction you have with your instructor can be very limited.