This would be good for a company like Eddie Stobart as it means they can increase their profits due to more people using their service. This is also a benefit for Eddie Stobart as it would be cheaper for them to buy products for their company because all of the prices are cheaper in the boom stage. It may also make it cheaper for Eddie Stobart to expand their business further as their vehicles and the price of properties to buy and rent would be cheaper. This would be good for them as they can enhance their business further and therefore increase their products because of this. A disadvantage of the boom stage for Eddie Stobart is that they would have to decrease their prices to follow suit with their competitors.
Free trade does add wealth to the economy in a country such as America. The main reasons to support free trade are to have a higher standard of living as it allows people to improve their living standard where they can consume better quality products and services at less expensive price. With the increases of standard of living, the people who are in the state of poverty will begin to experience better lifestyles and they will not be discriminated by the richer as now they are almost equally financial stable as the normal working people. Moreover, free trade is a good way for people to create competition and make transformation towards the country. With the existing of competition, the challenges with each other producing similar goods or services makes these businessmen to motivate themselves to discover new technologies around them.
The business will witness higher sales volume as the reduced prices will attract more customers to its products. By lowering prices of the outputs, the business will increase satisfaction of its customers. By boosting customer satisfaction, the business is able to absorb and retain the customers of its products for a long period of time The business should not take the idea of lowering prices lightly. This usually comes with a lot of disadvantages to the business which include; Reducing the prices leads to excess demand which will exceed the company’s total supply of its products. This makes the business incapable of satisfying the high market
The result will be an increase in net economic welfare: the economy will become more dynamic and scarce resources will be allocated more efficiently. In capitalist theoretic, the profit motive is said to ensure that resources are being allocated
In using this approach the initial dollar amount of a product is set lower, then overtime the items will slowly increases in price. This particular strategy helps to rapidly reach a wide fraction of the market to hopefully initiate positive word of mouth throughout our target market. This is our best option as a new business coming into the industry. Our main objective in using this method is to draw in consumers that might be unaware of what products we will be offering. In creating a new company and implementing innovative sales systems, we would like to take some of our competitors business by initially drawing customers in with offering lower prices.
This will initially help Apple because the economy is doing better which will allow more consumers to purchase Apple products. Apple strives on technology advancements they are always looking to better their products so they can stay up to date just like many other companies. A new patent application from Apple improves the accuracy of the touch screen (Whitney). At first this may not seem like a big deal, but apple is a company that likes to perfect its products to create better value for their customers. That is how they get away with charging higher prices for their electronics because you can’t find something as refined somewhere else.
The attitude of workers are very positive. If the company bring more money in then they can actually expand the company so they can hire more people that are looking for a job. It’s a good theory to use for a businesses that are losing a lot of profits, sending shipments late, scheduling incorrectly, and doesn’t want to be bankrupt in a couple of money.
Firms give discounts, because this attracts new consumers, since they are looking for low prices (Parguel, Pechpeyrou, Sabri-Zaaraoui, & Desmet, 2007). Attracting new customers means higher revenues and higher profits. The following task for a firm is to keep customers. By giving loyalty rewards, people will come back to your store. This also creates a disincentive for consumers to shop elsewhere, because they forgo discounts or extra benefits by doing this.
The system allows the powers of market forces to operate which in turn gives the consumer a wider range of goods and services. Also because producers are always seeking the highest profit they must try to please the consumer and win their custom. This leads to innovation and greater quality and variety. The firms which produce the correct goods and services will win custom and make profit, those which don't will go out of business and therefore release their resources to the successful firms. This will lead to the expansion of the economy and greater prosperity.
First, they agreed because there would be lower competitions to your business. Big Business would be happy because smaller companies die out, due to all the new expenses and inspections they can’t afford. Second reason that big businesses agree with the new improvements in the industry is because they don’t have to worry about other companies cheating to get ahead. Cops catch businesses would break the new laws/rules. Third, big businesses liked it because they get higher sales.