Seeking A Bigger And Better Deal

So far the company’s main focus has been on revenue growth rather than cost reduction but now customers have more options than ever before.

The company will have a middleman role, which connects the suppliers to its clients. There are few economies of scale in place because there is no significant capital investment required and specialised technology is not required. The company will likely encounter other competitors coming into the market when it commences sooner or later. However, its strong brand development achieved by successful and stable customer relationship established will lead to a low threat of new entrants in the market.

Accordingly, to reach the scale of revenue required would mean increasing the number of transactions per month a few folds from 2,000 to 8,000 transactions. Moreover this would require not only increase in the marketing of the existing 2,000 products listed on the store, but a significant increase in the breadth of product offerings. If the number of vendors was not going to increase the current process might continue be manageable, nevertheless one of the Store’s strategies is to limit the number of products from each vendor to only 20, hence requiring an increase in the number of vendors fourfold which is relative to the increase in revenue.

There is much to consider when expanding a business. How will you make, market, and distribute your product. Are you willing to take full liability for your product and understanding the legalities of what happens if your product is defective? Once that has been established, it’s important to make sure that your business dealings are in order. The strength of the contract and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of business entity the company will select especially if the company starts out small and looks to

Due to the fact of price sensitivity is high, consumers are willing to consume identical product with lower price; they stand on a strong bargaining position. On the contrary, suppliers have relative strong bargaining power because the high concentration of the industry.

Everyday there is the entrance of new products and services in the market. Additionally, product innovation drives competition between multiple organizations. Subsequently, there is a shift in prices and the types of services of provided. Next, there are multiple channels in which goods and services are provided to consumers. These distribution channels include producer to consumer, retailer to consumer, and wholesaler to retailer and consumer. Moreover, supplier diversity allows for economic growth. In some instances it may be difficult for diverse businesses to obtain capital upon start-up. However, many of the supplier programs provide networking opportunities to those who encounter any

Customer demand and product preference should be focused on to produce more of what the customer wants and to allow for stock reduction.

It would only make sense that the company is paying attention to what their customers need, want, and think. If the company is up for it, they will create a loyal customer and a good sector in the marketplace in regards to their products.

* More savvy and demanding: as they have a lot of choices they turned to become more demanding because if a brand wont obey them another one will, so the customers know that they can get what they demand.

The bargaining power of customers is high. First of all, the customer size is tremendous globally, which also has an accelerating growth rate in recent years. Customers’ leverage is strengthening as a result of this. Another inevitable factor is that with countless retailors online, there is low switching cost for customers to find other alternative companies that suits their desire to conduct purchases. Moreover, consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. Their purchase pattern can also be hard to learn too.

Of the quality strategies and tools considered by smaller entrepreneurial firms, the most used and most useful strategies and tools will include ones that promote flexibility in product, process, and volume in order to facilitate competition with strategies that focus on product and service scope.

Reconsider the Kelson Sporting Equipment Inc example. Discuss the concepts of infeasibility, unbounded solution, and alternative optimal solutions as they occur in each of the following situations:

A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of

• Customer demand: International customers demand more services from their vendor like installation and startup of equipment,

Consumer behaviour is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the