Download file to see previous pages...
he role of products in generating demand towards revenue growth, the author explains the company’s intention to improve quality of its networks and services as well as product diversification. Product diversification also contributed to the revenues as the firm offered internet services for vehicles and extended the services to home and advertisement applications (Chen, 2014).
Market segmentation is another with its benefits in profit maximization is another major point that the author illustrates with AT&T’s increased revenues and profitability. The company identified contract subscribers as its prime revenues source and recruited more than half a million subscribers, a venture that turned out to sales of more than a million smart phones. Other product based focus areas such as high-speed internet subscribers and televisions subscribers had significant number of customers. Marketing initiative towards a wider market command is another major point that the author demonstrates through the company’s initiatives that aimed at winning customers from its rivals. Initiatives such as AT&T’s application of similar marketing strategies as those of T-Mobile and offering T-Mobile’s customers financial incentives to switch to AT&T are examples. Claims of customer migration from AT&T to T-Mobile is another issue that the author discusses but the claim is not ascertained (Chen, 2014).
The points identify the role of market size as a significant factor to demand and revenues that an entity can generate from its sales. Identifying increase in number of subscribers as a factor to increased revenues and profitability explains this. efforts that AT&T made and is planning to make towards increasing its market base also explains the role of market size, which is a factor of population size and attitude towards products, as a significant factor to demand (Chen, 2014; Husain, 2010).
A perfect competition is evident in the described market environment and explains the
...Download file to see next pagesRead More
Industry when in the infant state is not capable of meeting head-on foreign competition; however, given the time it is capable to flourish and can compete with international players. Short term protection helps industry to develop its comparative advantage.
- An effective way of increasing my revenues is by using First Degree Price Discrimination. A group of customers with low price elasticity is less dissuaded by a higher price than a customer with high price elasticity of demand. In this case, it is presumed that the locales, being residents and students of the town, shall have a higher elasticity of demand.
This is a factor that will result in the students spending more time looking for parking which will be highly competitive.
The lower price for parking permit is not likely to lower the cost of parking.