英语论文网

ior price performance.

There are four stages in this model. i.e. introduction stage, growth stage, maturity stage and decline stage. In introduction stage, Pioneering firms often after considerable investment and repeated failures, introduce products based on a new technology. Costs tend to be high, and quality tends to be low because of lack of economies of scale or manufacturing experience and the product itself will be very basic. In growth stage, a dominant technology begins to emerge, and competitors standardise around it. There is likelihood of capacity shortages although costs and prices fall as standardisation and the adoption of large scale manufacturing makes possible economies of scale. At maturity stage, Overcapacity begins to emerge in the industry, products differentiation declines as technological know-how becomes widely shared, and price competition intensifies. Consolidation occurs within the industry as weaker firms are acquired by stronger ones. Sales to less developed markets, and the transfer of production to lower labour cost economies accelerates. In decline stage, The industry comes under pressure from new technologies offering superior performance, although this may be reduced by factors such as high price and switching costs associated with the new technology. Price wars erupt as the surviving firms fight for market share in a declining market, and exits from the industry, as well as consolidation within the industry, becomes more likely.

Analysing Micro - Environmental Factors:
The micro - environment consists of stakeholders who are directly or indirectly linked with any business. For example customers, consumers, suppliers, shareholders etc.

Suppliers: Suppliers are major pillars or any business as they provide all the materials essential for any business. Big deal with suppliers is that can they provide high quality products at low price. Can they do this reliably? Have they got the flexibility to respond to a firm's demands? What is the bargaining power of these suppliers? How dependent is the firm on them? Does their approach to their staff and resources fit with your ethics? Firms must decide on issues such as who to use to supply them, on the responsibility it takes for these suppliers and on the terms and conditions it adopts. Some firms take quite an aggressive attitude towards their suppliers by trying to push down the prices and delay payments. Others view the relationship more as a partnership in which they are working together with suppliers and that by helping each other both can benefit. The importance of suppliers can be seen if things go wrong.

Distributors: Distributor's job is to deliver your product to market place where it can be sell easily. Imagine you sell shampoo - what you need to sell this is to get it on the shelves in the leading chemists and supermarkets but this means moving someone else's products off the shelves! So the challenge is to get stores to stock your products; this may be achieved by good negotiating skills and offering appropriate incentives. The distributors used will determine the final price of the product and how it is presented to the end customer. When selling via retailers, for example, the retailer has control over where the products are displayed, how they are priced and how much they are promoted in-store.

Customers: Customers are key to sales. Managers must keep the needs of