(Claim) There are many reasons an annual Buy Nothing Day should not be in action worldwide. First and foremost, the human race has thrived and gotten where it is today because of humans natural desire to want more, and a day to increase awareness for overconsumption cuts the very heart of our society’s progress. 100 years ago, people were tired of riding uncomfortable trains. They wanted more. This desire for more caused the invention of cars, which has revolutionized our world.
The competitive global market created a trend of price negotiation, which thrilled many car purchasers (Ingrassia, 2009). Even though the company’s fixed price policy and affordable products helped retain loyal customers, competitors widely adopted this strategy and included better features on the supply chain, such as buyback incentives. New models of Nissan and Honda were threatening the company’s success as it mainly depended on a limited offering of small compact car models. Eventually, Saturn’s success was cut short by the various challenges that GM and UAW faced throughout the 1990s and the beginning of the 2000s. By 1996, GM was experiencing capital constrains with new management taking over both GM and UAW (Ingrassia, 2009).
Generally, when companies see that the consumption data of their latest product showed a greater supply compared to demand, they decrease the supply they will produce for the next product. This is to avoid a surplus: where the supply is higher than the demand. Apple used the same solution after the iPhone 6s surplus when producing the iPhone 7. As previously mentioned, the new jet black color introduced this year and was sold out in pre orders (Gurman, Webb). This shows the change in demand due to a change in customer taste.
Moreover, the impact of advertising is enormous that it causes people to purchase things that they do not want initially. Will Rogers said that: “Advertising is the art of convincing people to spend money they do not have for something they do not need.”. Advertisements have significantly negative influences on consumers’ behavior through marketing communication as well as mind-blowing tricks. Firstly, marketers use visual effects and “celebrities branding” to impress and arouse the curiosity of customers. People have all watched TV programs which have been interrupted by advertisements for products.
TOYOTA PRIUS GREEN OR GEEK MACHINE ? ANSWER 1: The introduction and sales of Toyota Prius affected the following factors customers, public, competitors and suppliers. Customers There were the want for a revolutionary from the people for their own reasons. We can categorize them in those people who interested in scientific and technological advances, in other whose concern is the cheap fuels and in those with environmental concerns. Toyota understood that want and brought into sales the Prius before its competitors.
With the lean manufacturing strategy, Porsche expanded their production line and brands. The move to introduce Porsche Cayenne with a similar chassis as the VW tourange led to brand corruption. The move by many people to use Porsche cayenne in daily errands led to decline in brand importance thus reducing its sales. Most of the ideas that Porsche developed or tested could not be funded by the organization. The move by Porsche to develop car for external entities meant loss of
2.3 Porter’s Generic Strategies Referring to Porter (1980), Porter’s five forces model of industry competition is a framework that tries to analyse the level of competition in the industry and corporate strategy competition. First, competition in the industry means that fierce competition in the same industry leads to lower the profit potential of the company. It may lead their company profit slightly reduce. Second is potential of new entrants into industry. This is because the market produces high return, so that will attract new businesses and lead to many new entrant.
Its revenue, most of it from advertising, continues to rise at respectable rates. Not only has Pandora attracted more users but the average number of hours per user have also increased.” “In 2014, Pandora signed an agreement with some music copyright owners for lower royalties in exchange for more frequent streaming of songs.” As Pandora grows, it hopes to gain leverage on music labels and drive royalty costs down. ADVERTISING Before Pandora introduced advertising it initially offered a subscription-only service without commercials. However, the idea of paying did not get well with most U.S. consumers and the company. They had to consider alternative business models to offer a free service.
In fact, radio was initially considered a kind of disembodied newspaper. Although this idea gave early proponents a useful, familiar way to think about radio, it underestimated radio’s power as a medium. Newspapers had the potential to reach a wide audience, but radio had the potential to reach almost everyone. Neither illiteracy nor even a busy schedule impeded radio’s success—one could now perform an activity and listen to the radio at the same time. This unprecedented reach made radio an instrument of social cohesion as it brought together members of different classes and backgrounds to experience the world as a
Advertising featured mostly on television since most homes owned one. Billboards also played an important role in advertising and they were placed in strategic places where there would be a likely hood of traffic thus resulting to more sales. The newspapers would sell spaces to companies that would be creative in their adverts with the use of beautiful visuals to attract their target customers. Various advertising agencies came up with some television channels focusing on advertising only. Companies were also required to have some ethical considerations while advertising their products with the intent of ensuring that they were offering legal and safe products to the public (Kaser 35).