This 4 page paper looks at a case study supplied by the student, looking at the way a company wants to increase revenue by increasing the demand and supply of its goods, looks at the elasticity and then considers costs. The bibliography cites 2 sources.
Name of Research Paper File: TS14_TEappliedM.rtf
Unformatted Sample Text from the Research Paper:
take little adjustment from the goods that were already being manufactured, making this a cost effective strategy, The success or failure of this may be seen as moving in line
with the market and the way in which supply and demand emerge, the companies ability to maximise their sales and the impact on their costs. 2. Supply and Demand Looking
at the company there are influences, the market for plumbing goods is dominated by 3 companies with more than 80% of he market; this is a high level of concentration.
They have large sales and small companies are unable to gain the economies of scope and scale. The market is price sensitive and the result appears to be that as
Applied cannot compete on price the demand for their goods has been declining. The company feel they have found a niche where there is growth, The economy in the
US is doing well, and one sector that benefits from this is the restaurant market. If there are new restaurants opening they will need to have the plumbing fitted prior
to opening. As such it is believed that there will be a demand in this sector. It is also believed that this is a demand that the company can tap
into as although it is accessible the major suppliers to not specifies in this niche market. The idea of targeting the market is to increase sales, so as demand
increases the company wants to increase the supply of goods, this will allow them to maintain process, or even increase them slightly due to the economies of scale they may
realise, with the main aim to increase the revenue of the company. If this is charted then we can show the shift in a graph, the original poison being the