The fast inventory turnover, marketer finance, low operational prices, and self service facilities enabled Costco to control at a considerably lower profit margin and to expire those savings to members through lower costs and better quality product. By charging members a paid fee, that supplemented overall profitableness, it provided shareholders with an appropriate
Cash Ratio measures the cash available to the company in order to satisfy its short-term liabilities. Cash ratio of at least .5 is better because there are very few companies that actually have enough cash to cover their current liabilities. The cash ratio is the most conservative look at a company’s liquidity since it only looks at the cash. This ratio is an indication of a company’s creditworthiness and is used to decide how much credit should be extended to the company. In the case of Newmont it has a ratio of 1.96 which is a good indication that the company would be worthy of a loan from creditors.
• By building economies of scale so that it can lower the fixed cost per unit. • Building capacities and spending money on research and development. New entrants are less likely to enter a dynamic industry where the established players such as Twitter, Inc. keep defining the standards regularly. It significantly reduces the window of extraordinary profits for the new firms thus discourage new players in the industry. Bargaining Power of
Financially speaking, Home Depot has an advantage over Lowe’s in most of the applicable metrics. Lowe’s does possess low debt to equity ratio and is not highly debt leveraged so this gives the company the ability to improve and make strategic decisions based on the needs of their customers. Over the last three year average the companies are both growing at a similar rate in revenue and earnings. Both companies must make the correct strategic decisions in the coming years to adjust and maintain their position and grow their advantages over the competition over time while minimizing their own
4. Analysis of strategic capacities of Nikon Corporation This section analyzes the strategic capability Nikon. It starts with a value chain analysis, followed by a VRIN evaluation to determine whether there is any capacity can be sustained competitive advantage. 4.1 Value chain analysis Porter developed the value chain to help determine the internal activities for a competitive advantage, and which are not. The method includes breaking the company into five "major" and four "support" activities, and then looked at each one to see if they give a cost advantage and quality advantages.
In a graph made by the Bureau of Labor statistics it states the unemployment rate for people depending on how far they went with education. It states,” High school diploma 7.5%, Bachelor’s degree 4.0%, and Doctoral degree, 2.2%.” College graduates are less likely to not have a job, which means that they will have a sustainable income that allows them to be able to provide for their families. In addition, college graduates get paid more. In the article, “ Actually, College is Very Much Worth it” it states, “Bureau of Labor Statistics, in 2010 the median weekly earnings for someone with some college but no degree were $712 compared to $1030 for a college graduate. That’s almost $17,000 over the course of a year.” There is nothing wrong with getting paid more money, if anything it makes life easier because you won’t have to worry as much when you have to pay your bills.
1. Explain to Mrs. Wen what CRM is and how CRM is different from traditional marketing. Customer Relationship Management (CRM) is a term that refers to practices, technologies, and strategies that organizations use to oversee and analyze customer interaction and information. This is done through use of the consumers’ lifecycles, with the objectives of enhancing business relationships with customers, helping with customer retention, and increasing profitability. It is basically a system created by the company to interact with its customers effectively and efficiently.
Porter. This analysis is used to measure the level of competition of the company in same industry. Abundant of economic studies stated that different industries can survive at different profitability level, the difference is explained by industry structure ("Porter 's Five Forces," n.d.). In other words, this model identifies industry structure based on the varied profit margins between industries, to help the company determines corporate strategy ("Industry Analysis | Porter’s Five Forces | Competition," 2014). The objective in this analysis is to help managers determine profitability and attractiveness of an industry (Investopedia, n.d.).
An explanation for this is simple: seniors usually have less income than adults, therefore a stay in the hotel takes up a larger share of seniors’ budget, meaning that they might not choose to purchase the good for a high price, which is affordable for adults with higher incomes. In short, lower prices are offered to consumers, who might not be able to afford a higher price, thus attracting more visitors and raising the profits. Let’s take a look at the graph below. Output is Y number of hotel rooms booked at price P. D1 is demanded by adults, D2 – by seniors. If suppliers charge price P1 for all the rooms, they are only targeting one segment and quantity sold will be Y1.