Entrepreneur Research Paper Adriel McBride DeVry University December 17, 2012 TABLE OF CONTENTS Introduction 3 Abstract 3 History behind BSB 4 Reasons for Failure 5 Analysis …show more content…
So it kind of boils down to customer satisfaction, which is always a big part of a business success. When BSB couldn’t make good on their promise it reflected badly on the company and made their consumers wonder if they were really up for the challenge. For example take a gamer that is anxiously waiting for a new Xbox game console to come out and is schedule for release in May but is pushed back to August, a lot of loyal customers will be let down and possibly turn to PlayStation which new console came out when vowed. They may not lose a lot of of customers but it could cause a ripple effect for the ones that did chose to get a PlayStation instead. That is what happened with BSB, they had satisfied customers when they finally launched but not enough to keep them in business. Another thing that caused them to fail was not having the sufficient operating funds. The owners didn’t estimate how much money they would need to accomplish what they set out to do. It is always important to know how much money your business will necessitate, that includes the starting cost and staying a business. That was not well executed when the owners of BSB started the company which was a major cause of why it failed. Too much money being put into the company but not enough coming in. They had major financial issues they caused them to basically turn over their business to their competitor. That is never how an entrepreneur plans their business to turn out especially a few
Rating for the respective network is obtained by substituting the values in the above equation as follows
Best Buy’s History & Main Characters: Best Buy is Minneapolis-based and is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Throughout Best Buy's 37-year history, the company has maintained the tradition of making life fun and easy for customers and employees, while providing a significant return to partners and investors. It has 80,000 employees and over 550 stores in the U.S., in addition to the brands Best Buy Canada, Future Shop and Magnolia Hi-Fi. Their leadership is led by Dick Schulze, Founder and Chairman, Brad Anderson, Vice Chairman and CEO, Al Lenzmeier, President and COO, and Darren Jackson, Executive Vice
For the industry analysis, we are certain of sales since the PS4 is a consumer product particularly. For that reason, the buyer has a high bargaining power on the product. The market for casual gamers has increased seriously and sales increased after decreasing price of the PS3. Due to the uniqueness of every video game console and the games buyers have bargaining power. A small difference might be significance an extra hundred dollars for an intense gamer. People have more aware to the price difference because they play video games more casually and as a result they have more bargaining power. Buyers have a reasonable amount of power in the video game industry in particular with Nintendo. Although Microsoft and Sony have other sources of revenues, the major source of income comes from the sales of games and game consoles.
The negative outcome with this strategy would be that it may not lock-in retailers. More research and negotiation with retailers will be needed. Another negative affect would be that this strategy would be costly. We would have to see if we are financially stable to invest.
BBNY followed a niche strategy to create differentiation benefit over the competition. Founder’s strategic focus on creating good customer experience resulting in high productivity and decentralized BBNY store operations were some of the key reasons BBNY enjoyed high margins on its profit and low cost structure. Since BBNY went public in 1992, BBNY was a Wall Street’s darling stock and was favored by investors over other retail companies. BBNY stock was trading at $37 per share at the beginning of year 2004, an impressive 118% gain over its IPO price of $17 per share.
BBBY has too much cash even though it has used the cash for store growth and small acquisition. They should be focusing on using their cash to increase shareholder value.
Business risk in the case of BBBY is low if you only consider that the products they sell are produced by name brand companies, so any products needing repair could be sent directly to the name brand company. By passing BBBY and that BBBY has no control over the quality of the products they sell and that there are no significant switching costs. However, their degree of operating advantage is high which would indicate high business risk. If management adds fixed operating costs to their business operations, without an increase in sales, the firm's profit declines and it
This company in the first place began an initiative without gaining proper knowledge on the benefits and cost of this new venture. They had not done the proper research for just how well this venture would work for them. In doing so, they are expected to be ready for anything that comes their way. Any entrepreneur understands that business is just a matter of taking chances. Anything can happen at any time. When this disappointment happens, the leadership should have sat down to evaluate and discuss the options available to them. They should have counted their opportunity cost. If they would have done this efficiently, then it would have been planned to see that several other options were available to them. Instead of pulling out, they should have looked for other implementation methods available. They should have also invested in security software that would ensure customer information safety.
BPS also has to address the optimal product development path for its new products, reexamine its marketing focus and company perception, reexamine its manufacturing integration processes, market pricing strategies
In 1997, Boeing lost $1.6 billion against their earnings due to problems with the supply of critical components. They had to halt the production of the 737 and the 747. In 2006, suppliers for Boeing’s 787 fell behind schedule which resulted in a delay of production.
Similarly – the customer satisfaction report of B & C were continuously suggesting more product improvement and sales consultation requirement. I tried to increase the sales force time allocation to them.
1. What, if anything, should Sony do to turn around the sales of the PS3?
It also helped companies to consider an alternate ways to spot opportunities that will give add value and competitive advantage in business in order to capture the market demand. The issue arise from my own perspective is whether BOS can be reliable for the long term success of the companies. How company want to sustain their high performance and success by focusing more on the uncontested market space rather than competing in overcrowded industries.
Because what JetBlue did was stop thinking about looking right customers for their business, this way they devoted himself to transform the company to focus on its customers, so used all the basics of marketing which seeks that customers have an important value in the company so that they can better understand consumers and achieve satisfy in the best way, this is the ideology that drives this company, the most important thing for them is that the customer are happy with JetBlue and does not change the company for any reason, and then for the next plans they came back.
Therefore in this case if Sony were to increase the price of the PS3 they would expect to make lower total revenue. This is because the predicted demand for PS3s would be expected to drop more than the percentage increase in price could cover.