Recession is two consecutive quarters of negative economy growth. During recession, there is low level of demand because people don’t have much money to spend. So they look for cheaper products that they can afford. At this time businesses confidence gets low as people aren’t demanding for their products so they would have to cut out their productions as they don’t need to make as much products. At this time they would need to provide cheaper price to attract their consumers and to increase the demand.
Therefore, company A needs to stop making this product. Although we can argue that if company A could reduce the cost dramatically, it can become profitable. However, as the demand of its headphones is shrinking and there are so many suppliers (due to low barrier of entry), there will be great price pressure on the product, as explained by William F. Samuelson and Stephen G. Marks (2010). The price reduction may over shallow the possible cost reduction the firm could achieve. Susan Schreter’s second step is to target new customers from within groups.
You may not be able to offer or afford the low prices that the corporate chain store can charge or offer. By providing excellent customer service you can offset the effect of higher prices by offering a better customer service experience . to manage the higher prices they can satisfy the customers with marketing strategic techniques by spending money on advertising to get your products and service to be heard, do it gives a pleasure view of the quality of products, so this make the organisation feel very proud of offering sensational customer service. How does effective customer service benefit the employees Creating a successful working environment can enhance the importance of leading improvised employees and their morals of giving customer satisfaction and they are eager to help and put irate customers ease and improve their shopping experience. So therefore, it can overwhelmingly lead to a pleasant working environment which makes employees feel satisfied and good at what they do.
They could open late instead of mornings and get rid of slow peak mornings. Also, since they have a certain amount of people starting they could cut back, because they are running slow they don’t need as much people. Next, they can run more specials such as if they buy a certain amount of food or drinks they get a game for free. Lastly, they can raise prices to increase profits. These solutions can cut expense costs, and make more profit, because you aim for the peak period with specials, and with raised prices.
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?
Kudler may not have the resources to launch advertising for the company because problems have occurred because of the lack of experience to the target market. Kudler needs a target market to allow the company to focus on marketing dollars and brand communication on a exact markets that is more likely to buy from than or other markets. This is a much more reasonable and efficient, and successful way to make potential clients and generate business. Kudler chain of stores makes them a distinguished factor in the market. This is why a lack of customers will have a huge affect on the growth of the company because of the decrease of the sales in the
Recession- The recession is an opposite of boom stage. The unemployment increase, most of firms are losing confidence and stops invest or expand. They may change their planning and started to survive. The customers are likely to save money then spend and the percentages of loans are high and may increase. Individuals are losing jobs and the government have to spend more money of benefits.
Under Ulrich, the strategy has been to differentiate their brand by providing high-quality, fashionable merchandise at low prices. However, with the economy in financial mayhem, consumers are spending a lot less than in the past. Target, like many other retailers, may be faced with several significant issues in the near future. Target Corporation
The first red flag would be that they are competing with huge computer companies that can have anything a customer needs readily available to ship. While Keystone seems to be doing a great job keeping up with the demand of certain products, they are forced to charge the customers more money for those products. While this has not currently affected them, it could in the future and could eventually be a problem for them. Another thing is that although business is booming right now, computers businesses do very well when the economic conditions are good. There are reports that say the economy will grow over the next few years (2010), but there is a possibility that they could be wrong and that won’t happen.