However, that market is high competitive and almost commodity-like. Company A would need to consider reducing its labor force or even moving its operation to low cost-region in order to be competitive in the iPod/iPhone headphone market. Another new customer group is the people who use noise-cancellation headphones. There are limited players in this market. Also, the quality of noise cancellation headphones vary a lot and the customers are willing to pay higher price for good product.
Using a leisure market of your choice, discuss the extent to which it may be considered to be an oligopoly. An oligopoly is a market that is dominated by a few firms who have a high concentration ratio. Oligopolies frequently maintain their positon of dominance in a market because it is too costly for potential firms to enter the market. This is called barrier to entry, and due to this they can earn supernormal profits (see figure) as they can protect themselves from competition in the long run. For the cinema market building something which can seat enough people with the right equipment (e.g.
C Penny Company. The resultant effect on the high competition among the suppliers is less bargaining power between the suppliers. The J. C Penny Company is, therefore, at an advantage of determining the cost of raw materials from their suppliers in order to maximize on their profits. The overall effect of the less bargaining power of the J.C Penny suppliers is that it works positively for their success in the market.
In short run profit maximization will increase however in long run it is harder to increase companies profit because they will need perfect information in order to prevent the risk of the market. According to reality in most of times big companies work for society, to get a brand image and name lowering prices, use child labor and pesticides in order to create lower cost and therefore increase their profit. Sometimes companies make polices in order to get subsides as low carbon emission. As a result more consumers are demanding these products. In the short run firms may not increase their profits because the cuts in prices but if they achieve this in long run they may experience maxim profits.
An example of this could be social security benefits. These motivations help the company recruit top level employees and increase their overall productivity. But this can be a trade-off as these benefits and rewards can be costly. Takeaway 2 - Corporate Culture, Human Resources, and Ethics Zappos is a great example of a company that has created a lively atmosphere for their workers through their casual working environment. But another takeaway is that this type of culture is not compatible with many companies.
One main reason was that socks were regarded as an unexciting category by the retailers and there was high price sensitivity, which led to limited opportunities for product differentiation. Also, the industry saw an increase in demand for tube socks, which the consumers felt were more flexible. The Issue in the Case - In order to attain higher margins, CU wanted to venture
Negative: Kind of Profiteers will be at a lower price to buy local art goods sold at a higher price abroad, it makes a huge difference prices between in Indian art of local and international market. Identify the 5-forces of the industry environment. How is Saffronart.com positioned relative to each of them? Art industry is profitable, because most forces buyer power, supplier power, threat of new entrants, the threat of competition, the lower the threat of substitutes. Low and medium buyer are some of rich people who are consider they are social status among elite individuals of social important.
The job of a salesperson ranges from order takers to order getters. Personal selling is the key to developing strong relationships because it is directed toward achieving mutually satisfying results between customer and seller, which will sustain and enhance future interactions this is very important because it is a lot cheaper to retain current customers than to attract new ones. However, “In a results-oriented environment, the foundation of many compensation systems, sales quotas can focus sellers and managers in a direction inconsistent with customer-oriented selling.”(“Evans”,
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
Moreover, the goods from the outsourcings may not be as efficient as the goods that are made within the country. The consumers would choose the goods through the brand names or the prices; however, sometimes the consumers would choose goods by where they are made. Therefore, it is very significant to know where the goods are manufactured because it will increase the satisfaction of consumers since they are very demanding on the quality of goods. In addition, as the consumption of the goods decrease, the companies will earn less revenue that decreases the investment that they will spend for outsourcings. Thus, consumer demand has a big impact on outsourcings since people do not want to spend money on the outsourcings’ goods which make the companies earn less profits; on the other hand, the outcome will reduce the spending on