Higher quality products allow for a higher sense of value provided to the customer. Then, companies can charge a higher price because of that. Whereas, from the quality as reliability perspective, customers want a product that performs as it was intended and can last. The product or service has to appeal to the customer and make them want your product over another. Companies will be more profitable because their products are more reliable, then they will have less defected products.
The last alternative is that if a company were to vaguely use “free range” on their packaging, they should not be over-charging prices for profit if they are not over-compensating for the labeling. I recommend hiring more personnel to ensure the quality of the product which will benefit the customers and the company. Although this alternative is costlier because the company will have to pay wages to the workers, it is not only beneficial to the company but to the economy. By hiring more workers, this action will stimulate the economy. I recommend this alternative because it boosts the image of the company within the company and with the
Stryker likely gets their raw materials from multiple suppliers and if they are dominate enough, the suppliers can reduce the marginal earnings of the company. Stryker can reduce this risk by experimenting with new product design, having an efficient chain of suppliers, and seeking out suppliers whose business depends more on Stryker than vice versa. Buyer Power Buyers can put pressure on Stryker because they search for the best quality materials, yet they want to pay the least amount they can for it. This causes difficulty in sustaining profitability over a long period of time. Luckily, Stryker can reduce the bargaining power of buyers by creating a large customer base.
4) Empowerment sounds unrealistic because advertising is driven by the need to increase sales revenue. The objective is to ensure as many people are aware of the product and are convinced that they should choose it over the rest. Consequently, only information that makes the product appealing to the consumer is shared and, in some instances, exaggerated to ensure the consumer ends up buying the product. The advertiser should provide information that will be accurate to ensure the consumer is not misled. However, the intention should be to increase sales not to empower the
The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to. When a company is competing through its differentiation advantage; it would try to carry out its activities in a much better manner than the
We find it more beneficial to focus on the stakeholders because down the road we must ensure that we continue to increase profits. If the company is still able to create revenue, the company should keep higher positions in order to ensure a smooth order of business and job stability. It is important to think of the community and the primary stakeholders when proposing a business plan because their positive outlook of Chocoholics Anonymous is needed to create a profit. In a discussion written by Waldkirch, he discusses the models of shareholders and stakeholders. He responded that the shareholder’s model was not as strong as the stakeholder’s model because “Corporations cannot be successfully managed in the long run against the interests of its stakeholders” (Waldkirch, 2008, p. 7).
It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive
Sales projections are incredibly difficult to predict for a new company but, considering the above analysis of the financial statements, we can tell that Mdelic Wasatch Outerwear should improve their current financial position but it is still in a favorable position and we can expect positive results. I also think that we need to keep improvinging and I have a few suggestions: 1) Explore new markets We should start exploring new markets for our business and take the time to plan how we can expand our existing market. We can look for ways to improve our marketing, whether by winning easy publicity or preparing direct mails. 2) Have a Limited-Time Sale or Promotion Discounting our products may seem antithetical to increasing sales, but even offering a slight discount can make your products and services more attractive to a client. 3) Use Social Media to Your
One explanation appeals to be behavioral traits; the managers acquiring firms may be driven by overconfidence in their ability to run the target firm better than its existing management. This may well be so, but we should not dismiss more charitable explanations. For example, Firms can enter a market either by building a new plant or by buying existing business. If the market is not growing, it makes more sense for the firm to expand by acquisition. Hence, when it announces the acquisition, firm value may drop simply because investors conclude that the market is no longer growing.