Monday, October 31, 2011
The 2012 model of a Tesla luxury sports car is not even on the market yet and the waiting list is out the door and down the street. Needless to say it is “SOLD OUT”. Here is where the law of supply and demand is put to test: there are currently 6,500 people who have their names down for reservations and only 5,000 cars that are to be built in the next year. Right now the excess demand is a pressing issue for Tesla, however CEO Elon Musk says they expect to eventually increase their supply of these sweet rides to around 20,000 sold yearly, depending on how its demand fluctuates. The prices of these high-tech electric vehicles will depend on the miles per charge; the farther it can travel with one charge the more desirable it will be and the higher the price tag it will have. The base price of $57,400 ranks $30,000 below many of the top line sport cars on the market. Only time will tell whether this fancy speedster will be able to keep up demand and continue to attract customers.
Yes many businesses are taking hard hits with the economic recession right now, however the Container Store is continuing to attract customers, especially women who make up 85% of their customers. As said by the CEO of Container Store, Kip Tindell, ‘People tend to nest during chaotic times’. This idea is exactly what the Container Store is promoting to its customers; even in tough financial times, people are still going to desire products to make them feel organized and on top of things in their own space. With 1,500 new items going to 48+ stores each year, the company has managed to maintain financial stability through much of the recession. A key approach taken by the Container Store is that the experience that the customer has in their store should be easy, genuine and memorable enough to return often. For example, Tindell’s theory of providing benefits and incentives through the shopping experience is reflected in the store’s wide aisles: allowing more space for children or carts, low shelves: for easy access, and helpful (not pestering) sales associates. All these factors along with the desirable products the customer came for in the first place all result in customer happiness.
Sunday, October 30, 2011
Thursday, October 27, 2011
Monday, October 24, 2011
The economy has been tough over the last couple of years on everyone, but the fast-food chain McDonald’s has found a way not to just weather the storm but also make a profit and expand. McDonald’s has taken into account all of their costs and adjusted the price of their items appropriately creating an equilibrium for their market. This year they have had to make certain increases in price because their variables costs have gone up. Their products including beef and buns have gone up and the labor cost has gone up as well. McDonald’s has done a great job balancing the extra costs and adjusting the price accordingly trying to make sure not to overprice their products causing excess supply and also not making the price to low resulting in excess demand. What has also made this company so successful is changing with the times. They have updated their look with their buildings, ad campaigns, and the overall feel of the restaurant chain. They have also updated their menu to include more health conscious options and opened more 24-hour locations. Overall, McDonald’s main goal was to adapt to the peoples’ tastes and preferences. If you don’t change to appease tastes and preferences, then your company will go in a downward spiral. McDonald’s has been very smart in most of their decisions to try to stay at the top of the fast-food business. They are expanding even more, trying to reach all the markets they can since Europe is their biggest market now not the United States. All the projections for stock worth and corporate revenue that were made for McDonald’s have been surpassed. In this economy surpassing projections is quite an accomplishment. How they did it was to find their products equilibrium, and in return it has made this a great financial year so far for McDonald’s.
Sunday, October 23, 2011
Apple’s strategic plan was a brilliant one. Everyone thought that the new iPhone, the iPhone 4gs, was going to be a big bust. The improvements made on the phone were not monumental warranting already iPhone owners to buy the new one, but the article writers didn’t take into account that the iPhone was going to be brought to brand new markets. The iPhone was going to be sold in different countries than it ever had and new networks including Sprint were going to offer the phone. The market for the phone was increasing instead of decreasing. When the new iPhone models came out when the only networks selling it was AT&T and Verizon the demand was not as high even though the supply was the same. The demand was not as high because many people already had an iPhone when the new model came out and could not justify the cost of the new phone. So when Apple allowed new networks and countries to sell the phone it was increasing its market, which will usually increase the demand for the product. With this iPhone the record sales in three days have broken the sales records from the release of the iPhone 4 almost doubling the mark it had set previously. Overall with the market getting bigger and having new iPhone customers it would stand to reason that this would be the biggest release of the iPhone yet.
Thursday, October 20, 2011
Sunday, October 2, 2011
Thursday, Mark Zuckerberg introduced the new look and features that are coming to Facebook. When Zuckerberg created Facebook, Profiles were simple and there was little information being shared. As changes were made, the website became more and more popular, reaching half a billion hits in one day last week. This popularity is proof that consumer sovereignty is a prominent part of social networking. When Facebook competes with other social networking sites, like Twitter, they aim to leave the users with a better and more useful product. Although people are often weary of new changes, Facebook has an incentive to continue to adapt in order to stay ahead of the curve. This time, Facebook has changed the Newsfeed, by marking relevant and interesting posts and by adding Ticker on the side, showing what friends are doing in real time. Additionally, Zuckerberg realized that important posts, pictures, or events quickly are pushed off of Profiles by newer posts. Facebook’s next step is Timeline, a place where the user can select what is important to them, and what others might be interested in, so that important posts are not neglected. This will allow people to catch up and connect in a convenient way. Although people are nervous about the changes made this week, they will no doubt increase the overall quality of the product and in time will change the user opinion. Facebook must constantly be advancing in order to keep its status as the preferred networking site and to not be overtaken, becoming an inferior site.