Economic Principles and the Greeting Card Industry

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Economic Principles The greeting card industry is a major contributor to the success of firms inside the sector. This is because it offers them with a marketplace that is continually in demand. According to Pullen (2013), this is an industry that is realizing $7.5 billion every year in annual sales. As nine in every 10 households is purchasing these products and sending them out to their friends or loved ones. These figures are illustrating the potential market of firms that want to create a unique niche and reach out to a new segment of cliental in the process. (Pullen, 2013) In the case of Send Out Cards, a new business model is allowing customers to save time and money through customizing and mailing them out directly. This takes the hassle out of selecting cards and having to make trips to the Post Office. To fully understand the market and demand for these products requires focusing on a number of areas. These include: identifying the market structure, the elasticity of the product and the rationale. Together, these elements will highlight the strengths of the business model and the ability of the firm to address specific needs from a growing segment of consumers. ("About Send Out Cards," 2013) Identify the Market Structure Since the 1980s, the Greeting Card industry is continuing to evolve. This is because of shifts in consumer demand from them purchasing their cards through other companies besides traditional manufacturers. Evidence of this can be seen with
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