You are an analyst in a firm in your industry and your CEO comes into your offic
ID: 330721 • Letter: Y
Question
You are an analyst in a firm in your industry and your CEO comes into your office and asks the following question: “I’ve read the consultant’s report that states that currently suppliers have high bargaining power and our competitors are engaging in price wars both of which reduce the profitability of the industry. I get it. However, this is a static picture of the industry and I am more interested in a dynamic picture. What approach do you suggest that we use to develop a dynamic picture of how our industry is likely to change over the next 5 years?
Explanation / Answer
In this specific situation, company should work according to the cost differentiation techniques. Best type of technique would help the company to reduce the overall cost involved in manufacturing and distribution process. It will improve the overall availability of different aspects of the organisation.
By properly forecasting market Trends as well as understanding an internal assessment of the product by carrying out different surveys would be appropriate as it would provide a better support to the overall structure of the organisation and also help the analyst to answer the CEO of about the specific finding.
Using a cause differentiation technique would definitely help your organisation to maintain proper sales in the lower season.
Forecasting is very essential in this condition as it would provide information about upcoming events which would not be as much as accurate as the actual events but it could be used for getting best information available and for predicting the market Trends at a positive base.
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