Developing A Successful Business Model

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A firm understanding of the principle of supply and demand are extremely important in order to give one the best opportunity to develop a successful business model. The ability to correctly determine the demand for a product is imperative to ensuring one’s product fills a need in the market. Businesses fail everyday because the demand for their product was miscalculated during start-up. On the other hand, there are many businesses that are successful because they have developed a product in demand and respond well to changes in demand due to outside factors. Fresh Healthy Vending provides such a product. With any product, there are things that can change the demand, cause changes in supply, and change the quantity demanded. There…show more content…
If an organization were to remove all traditional vending machines and replace them with Fresh Healthy Vending machines, they would increase demand for health food items throughout their organization by keeping health food available to employees. There are also occurrences that can change the supply of products as well. Changes in supply can occur for a number of reasons. Government policies can cause changes in supply. The supply of health food can be directly affected by government policy changes. Currently, there are subsidies for certain crops grown in the United States. If a change in policy caused these subsidies to be tied to organic crops, then the supply of organic products would increase. Technology can also increase the supply of health foods. There are all sorts of additional colors and preservatives added to food to increase presentation and shelf life. If one developed a technological advance that illuminated the need for these additions, the supply of healthier foods to the markets would increase as well. Ultimately, in order the change the supply for a product, one must change the amount incoming resources, the size of the labor force, or anything else that allows an organization to produce more of a certain product. Changes in supply or demand can result in a change in the quantity demanded. Change in demand and change in quantity demanded are not the same thing. “Changes
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