Sendoutcards: Economic Analysis

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Introduction Economic principles are guidelines to establishing, successful and interesting business opportunities. Within the pages of a solid and practical business plan are reflections of sound economic understanding and clearly defined goals. The purpose of this essay is to discuss the economic analysis of a particular business plan based on the company SendOutCards. This essay will first give some important background information and specific details about this company and its colorful founder. Next, the economic analysis will include important factors such as the market structure of this firm and the elasticity of the product. The next section of this essay deals with supply variations and pricing decisions. The marginal costs and revenues are also important and are present in this analysis as well. The final part of the analysis discusses how changes in business operations change the mix of fixed and variable costs within the strategy. Background SendOutCards is currently a very popular and trendy business. It is known as one of the fastest growing network marketing companies in the U.S. and even in the world. It has successfully sent 50 million cards with the help of over 60,000 independent distributors. As SendOutCards homepage claims, the dual mission of the company, which is providing promptings to be in touch with anybody and making financial success in the meantime. This model creates a system to stay in touch with friends and the loved ones, with new

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