Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
Sure enough, by the last half of 2003, Chemalite, Inc. did indeed go into full operation with sales of $754,500 (Wilson, 2008)). This ability to generate sales early is important because Alexander estimates competition within about five years (Wilson, 2008). Additionally, Chemalite, Inc. has a firm order with the organizing committee of the 2004 Olympic Games for 60,000 chemalites at $1.50 each (Wilson, 2008). This will increase sales by $90,000. Chemalite, Inc.’s machinery used to produce chemalites in general-purpose machinery that might reasonably be expected to last for 10 years (Wilson, 2008).
Bob Waters, the sales representative that worked and lost the sale, has a low 20% success rate in selling the product. Doug Barnum needs to determine where the flaws lie in his sales strategy that resulted in the loss of this large opportunity. Key Issues and Solutions 1. Misidentified priority buying criteria overall & barely revised final bid after learning new information. a.
Analysis for the recommended solution 2.1. Demand: money cares a lot (income & price) The reason why the sales have declined in the past 5 year may come from 3 factors: Recession, Environmental Concern, and Price Competition. The MJ Brenner is overreacting to the environment threat. As research shows “In 2011,sales of green household cleaning supplies represented just 3% of all FDM household cleaning supply sales”, such a small market share itself is far from enough to account for the 7.5% decline in total sales in CleanSpritz. Economic recession has some impact on the drop in sales.
JC Penney was named on this list for its disappointing stock price relative to the retail industry. Its stock price was down almost 45% from January 1 1995 to December 31 1999, while the S&P Retail Department Stores Index increased by almost 43%. Due to declining sales and a deteriorating customer base, CalPERS believes the market has lost confidence in Penney's management.
Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and American truly entered what is called the Great Depression. Before Black Tuesday, the economy had been stagnant for months prior, and the effects of the market crash were compounded due to the use of margin, and the general lack of market regulations at that time. The use of margin means people had borrowed funds (Doc K). This led to a spiral of falling prices. With significantly reduced wealth, spending decline, banks failed and on top of this drought conditions contributed to a lack of good crops.
Until mid of 2004, the company faced a lot of problems which included declining in sales, falling revenues, failing franchisees, closing stores, having problems with the U.S. Securities and Exchange Commission over false and misleading financial statement, and law suits. These leaded KKD to hold back the expansion plans that had been projected. In late 2005, the stock traded around $6 per share, down almost 90% from its all-time high of close to $50 per share. The new strategy had been executed which focused more on a specialty retail strategy than a wholesale bakery strategy, promoted sales at company’s own retail stores and used the ‘hot doughnut experience’ as marketing tactic with customers . An additional strategy is to expand the number of outlets nationally using both company owned stores and area franchisees.
Despite its strong market and size in Europe, SNI had not posted a profitable quarter since the merger takes place. In 1994, the company faced the loss over $350 million. Company had a weak base in emerging Asian and North American market and 65% of its products were sold in Germany. SNI was slow to respond to market changes requiring more customer responsiveness and market shifts away from large mainframe systems, whereas the company had a strong technological focus. The company had experienced the strong union pressure and strict Government layoff regulation on putting efforts to trim high labor costs.
The photographic paper market similarly declined from a peak in 2003 to about 60% of the size by 2011 (4). In short Kodak lost ground in its shrinking primary market which had been a much better revenue generator than digital proved to be (5). Kodak belatedly declared a digital strategy in 2004; eight years after its revenues had peaked. This strategy was still based on photographic prints as an end point for consumers, which proved flawed. Kodak both invented and successfully marketed professional and consumer digital cameras.
Although Permaclean has several competitors, the total sales of each are small in comparison with those of Permaclean, mainly because none offers such a complete product range. In 2006 the price of one of Permaclean’s major products, Permashine, was raised from 75p per bottle to 99p when the product was repackaged in a newly designed bottle; however, the contents were identical to the previous pack, both in formulation and quantity. During the following two years sales fell by 27%. At 75p per bottle Permashine had been competitively priced but when its price was increased manufacturers of similar products had not followed. In the period from 2004 to 2007 the price of competing products had been raised by only 5p.