● Repurchase of shares increases the earnings per share (EPS), due to the reduction in the number of outstanding shares. ● Buybacks also counter unfavourable events such as hostile takeovers by preventing another firm from acquiring the company’s majority stock. The takeover target may buy back shares at a price, which is greater than the market value. ● Accelerated share repurchase stimulates the existing open market repurchase programs. ● Companies also consider buybacks for compensation reasons; at times, the company's employees and management are rewarded with stock rewards and stock options.
After identifying where un-needed expenses are being used, managers can increase profits by reducing the total cost of logistics. Although this is very time consuming, the benefits outweigh the disadvantages, as there will definitely be a loophole that the company can exploit and bring in maximum revenues and low prices for its customers. Customer satisfaction is the most significant as it has a direct impact on the market share. Research shows that it is five times more expensive to bring in new customers than retaining old loyal customers. Another benefit that Multi Future can have through customer satisfaction is that the customer needs are also identified and this can help them align their services
It is depends on the existing firms and the “height” of barriers to entry that attributes of an industry’s structure. The threat of new entrants will affect by: Firstly, the economics of scale as “high” barriers to entry into the industry that can make the industry more attractive because of the existing firms can earn expect above normal profits. Secondly, the product differentiations that the existing firms have their own brand identification and customer loyalty that will lead to new entrants use more costs to start other industry and then reduce their potential return. Thirdly, cost advantages independent of scale mean that the existing firms have a whole range of cost advantages. There are proprietary technology, managerial know-how, favorable access to raw materials, and learning-curve cost advantages.
Also, some airport hubs cannot consolidate traffic bound for many itineraries. Having this limitation and knowing the fact that some passengers prefer non-stop flights, consideration of both hub-stop and non-stop routing strategies can be more cost-efficient than a pure hub-and-spoke network (Jeng 1987). In other words, non-stop flights are always the most desirable in terms of convenience but on the other hand less desirable in terms of price for price sensitive customers. Moreover, the stops at the hub airports increase the expenses for the airline companies due to the facility charges and landing fees. Therefore, the airlines can generate more revenue by considering these key parameters and applying best network routing
The prospect of enormous profits attracts additional market entities. Higher prices make it possible to accrue additional revenues, in contrast to perfectly competitive market. Firms often introduced reserve production capacity, if it helps to increase sales, because additional sales, with prices much higher than the marginal cost, compensate increased expenses. Several countries use the cartels to aid industries with decline in selling. Companies of such industries can for one year or for a shorter period of time create a cartel with the approval from the relevant government body.
In addition resellers and the companies benefit off of each other. But does this benefit normal consumer as well? From the literature on the ticket resale market, Leslie and Sorenson found that due to the resale, there was a 4.1% higher gross surplus than if there was no resale. The factor that might reduce and offset the gross surplus is the rent-seeking costs and additional transaction costs. However their results suggest that resale markets are in fact welfare-improving because the gains created by resale often outweigh the additional transaction and rent-seeking costs.
Few airlines may also incur losses due to the increase in the price of jet fuel. Cost of jet fuel is directly proportional or directly impacts the airline profits and airline fares. Jet fuel prices will impact any airline, whether is a profiteer or a low competitive airline. b) Other factors: There are many other factors, which impact the airline fares other than the fuel they are of following i. Supply and demand: Demand is calculated based on the passenger willingness to pay and travel according to their wishes and their own
To do this, for their financial indicators they are trying to find new sources of revenue in order to minimize the fares and costs. Besides lowering the costs and fares, they also have customer profitability, when this increases, sales and revenues increase respectively. For their customer indicators, they aim to acquire more customers since this gives them an idea on customer satisfaction. The most basic way to earn customer satisfaction is on-time flights, this is another indicator for Southwest since customers doesn’t like it when their flights late even though they got it at a cheaper price, in line with this is on-freight deliveries. For their internal processes indicators, they do their best to improve operational efficiency since they offer services and not products.
Under Dr. Chia’s leadership, the company grows and expands. 2) QL Resources has pricing power. Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using QL RESOURCES’s products and services. QL RESOURCES has the ability to charge customers higher prices 3) QL Resources has economic of scale. Economic of scale is the cost advantages that QL RESOURCES obtains due to size.
The higher market concentration, we could think about a firm closer a monopoly . These factors comparatively easy to obtain and compute when the relevant market was identified. With higher market share and concentration, we will need less evidence for a further assessment on market power of a firm. A