Swan Fuel Strengths And Weaknesses

Another competitive advantage of a smaller business, like Datillo’s, is the ability to provide customers with a higher level of quality. Because customers of small businesses deal more closely with a ‘tight nit’ group of employees, the quality and service provided to the customer is much greater than a larger corporation composed of numerous locations.

It is easy for the new business to enter the industry in terms of cost factor. But when you look at the location advantages Westlake Lanes, it is located close to downtown area and neighborhood. It is also there in the industry for thirty

Entering the market requires heavy investment in establishing a name and make lots of outlets. It is a growing market with lots of pioneers that can make branches anywhere and threat the other chain in there selling areas.

I would not want to be in too close vicinity to a company that sells the same products, as we would be diluting our customer base. Also, some areas have restrictions on the proximity of companies that sell same or similar products, so it would be important to research those restrictions through the municipality in the area. I would also see if there are any companies that sell complimentary products to mine. It makes it easier for the customer to purchase products that are related, when they don’t have to travel far to get everything they

Another opportunity area for Belk is they are only located in the Southern states. Expanded to some of the other states has the ability to increase not only the customer flow but the profits the company stand to gain. Early on in their career they offer an in-home catalog which reach customer

3. What are the demographics of the location and are they feasible to support such a company?

This will help to ensure how successful they will be and give them a market plan when it comes to what type of products and services they will offer at each new location. Researching customers in all the projected new locations will give them an idea of what they will have in each store according to the areas shoppers like and dislike and how willing they are to try something new.

The mission of QuikTrip is to be the dominant convenience/gasoline retailer in each market in which it operates ("About QT," 2016). QuikTrip 's strategy to accomplish this mission is focused on locating stores at key high-volume locations rather than the number of sites. In other words, extensive market research is conducted to determine the best locations with high traffic volume, rather than opening as many stores as it can. Within the regions in which QuikTrip operates, the company does not factor in whether or not the location they are evaluating has competitors. Instead, the company counts on the service and value it offers to enable QuikTrip to corner the market at each location it selects.

From the recent case data, ExxonMobil has not acted irresponsibility in pricing its gasoline products. Outside of the grocery industry, I have not heard of any business segments surviving on less than a 5% profit margin. In reading that ExxonMobil reported only a net profit of 8.5%3, it is difficult to state that the firm over priced its products to reap abnormal profits. Although Mr. Lee Raymond’s $400 million retirement seems grossly out of proportion in utilitarian terms, adding these funds back into the firm’s bottom line would not change the profit results. With profit margins of less than 10%, it is unlikely that ExxonMobil would be able to keep the price of gasoline fixed if sweet crude oil were to increase from $80 per barrel to $88. This 10% increase in raw material cost would have to be passed through to the customer in the form of higher prices for the firm to survive.

With local marketing, the first thing that a new business should do is find customers in its own backyard. Traditional media like television and newspaper advertisements, but also using modern technology such as paying for advertisement space on the internet is a possibility. For example, paying a fee that secures that the product is the first link that pops up on the internet if a person searches for something relating to the product’s benefits. This can secure that the product is the first thing they will see and the first link they will click on when using a search engine such

The location of a business has a large impact of future sales and success. The potential location holds communities that are very close-knit and once loyalty is established sales can be maintained. The personal relationships with the customers are highly important in this area.

The disadvantages are higher outbound transportation costs. Even with a strategic warehouse location, such as Kentucky, there will bound to be retail outlets farther than others, such as San

To evaluate the alternatives, the key factors would be costs of setting up in other cities within Canada and if it will generate more sales by setting up there. If by expanding, more sales, more market shares and profits are generated then it is better to expand in that specific city but if the costs of setting up there are more than the amount of sales you will make in that city then it is better not to set up there.

* Low, Remote, time of delivery will be significantly longer and food may be cold.

If all companies provide similar delivery services, then prices would be lower and hence revenues will be lower too. If Federal Express creates and sells unique products to the market, then there would be minimum supply of that product into the market and hence the company can increase its profitability. Capacity control can manage business rivalry and increase profitability in the small package express delivery industry by not allowing excess supply of a product into the market. Over time, Federal Express can attract more customers because they have designed products with the most innovative features that the customers desire most hence achieve a sustained competitive advantage over its rivals. Federal Express can use product differentiation and capacity control to improve its business model and offer products with superior features. This can help the company sell its products to new markets, developing a niche, reap profits and maintain an edge over its rivals. Based on this case study, both product and process innovation at Federal Express can increase pricing options for the company and create more value by reducing production costs and this will make the company to continue to maintain above-average profitability (Mulcaster, 2009).