Business Recommendations for Big Drive Auto
Running head: BUSINESS RECOMMENDATIONS FOR BIG DRIVE AUTO
Business Recommendations for Big Drive Auto
Assignment #4
Learning Team B
ECO/561
October 4, 2010
Business Recommendations for Big Drive Auto
Economic influences play a major role in the success of a company especially when consumers are hesitant on spending or investing their disposable income or have many choices of who they will purchase from. Demand shifts influence profitability, which has a direct effect on the company’s ability to remain successful. Companies must carefully analyze the industry within they fall and understand how economic influences will affect their functions and infrastructure. Big Drive Auto Company is a major player in the market of automobile dealers in its market area. With many locations, including Canada, Big Drive Auto is an automobile company that sells many types of automobiles and automotive parts. What has made the company so successful is that Big Drive Auto has always attempted to stay on top of what its competitors are doing and how they are doing it. “Management is always scanning the macroeconomic environment for signals that may help Big Drive Auto better plan their business” (Big Drive Auto Scenario, 2010). After examining the data the company has maintained on its volume of sales for its various lines of business, the company determined it needed recommendations from experts. These recommendations would include suggestions on pricing strategies, non-price barriers to entry, and product differentiation.
Pricing Strategy
Whether a company is attempting to find its strengths to maintain or build leverage the company must have a pricing strategy. “In a competitive market, the seller must consider the four "P"s of marketing: price, product, place, and promotion. Firms must develop pricing strategies to accomplish marketing objectives based on their assessment of market conditions (e.g., forecasts of supply and demand) and the economic condition of the
Business Recommendations for Big Drive Auto
Assignment #4
Learning Team B
ECO/561
October 4, 2010
Business Recommendations for Big Drive Auto
Economic influences play a major role in the success of a company especially when consumers are hesitant on spending or investing their disposable income or have many choices of who they will purchase from. Demand shifts influence profitability, which has a direct effect on the company’s ability to remain successful. Companies must carefully analyze the industry within they fall and understand how economic influences will affect their functions and infrastructure. Big Drive Auto Company is a major player in the market of automobile dealers in its market area. With many locations, including Canada, Big Drive Auto is an automobile company that sells many types of automobiles and automotive parts. What has made the company so successful is that Big Drive Auto has always attempted to stay on top of what its competitors are doing and how they are doing it. “Management is always scanning the macroeconomic environment for signals that may help Big Drive Auto better plan their business” (Big Drive Auto Scenario, 2010). After examining the data the company has maintained on its volume of sales for its various lines of business, the company determined it needed recommendations from experts. These recommendations would include suggestions on pricing strategies, non-price barriers to entry, and product differentiation.
Pricing Strategy
Whether a company is attempting to find its strengths to maintain or build leverage the company must have a pricing strategy. “In a competitive market, the seller must consider the four "P"s of marketing: price, product, place, and promotion. Firms must develop pricing strategies to accomplish marketing objectives based on their assessment of market conditions (e.g., forecasts of supply and demand) and the economic condition of the
References: Barriers to entry. BusinessDictionary.com. Retrieved October 03, 2010, from BusinessDictionary.com website: http://www.businessdictionary.com/definition/barriers-to-entry.html. Big Drive Auto Scenario, (2010). Retrieved on October 1, 2010, from University of Phoenix online classroom McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics. Principles, Problems, and Policies (18th ed.). Retrieved from the University of Phoenix eBook Collection database. Oligopoly. (2010). Retrieved on October 2, 2010, from the Investopia Web site: http://www.investopedia.com/terms/o/oligopoly.asp. Review seller’s market, 2010. Retrieved on October 4, 2010, from http://www.acq.osd.mil/dpap/cpf/docs/contract_pricing_finance_guide/vol1_intro.pdf.