3a: Group Discussion - Essay Example

3a: Group Discussion The power which buyers hold is instrumental in the pursuit of a stronger national economy, as well as a greater presence on theinternational stage in the eyes of the rest of the world. The importation and exportation of goods acts as a way to have a more solidified governmental structure. For the sake of this assessment, the industry to observe is that of the greeting card industry. Typically, the purchasers of greeting cards are those who wish to express a certain sentiment to another party.

The source writes on this when it says that, "Shomei caters to two types of people: consumers and customers. Customers are the store owners who are selected to become licensed Shomei retailers. Consumers are the people who actually buy the cards from the customers/retailers," ("Shomei" p.1). Many industries have found themselves catering towards different market types in order to provide them with new ways for advancement and prosperity. The same source writes that, "Shomei consumers do not resemble card buyers of the past.

We have tapped into a new generation of card consumers—a younger, trendier, professional crowd that includes more young men than has traditionally been the case in the greeting card industry," ("Shomei" p.2). Customer buying power is observed by saying the following; "Shomei card buyers are looking for high-quality missives that impart a sentiment to the recipient. The sentiment is conveyed not only through words but also through illustrations and the choice of card design. Our consumers have demonstrated through their buying power that they are turning away from traditional cards with their focus on soft sentiments and toward more powerful and artistic greeting cards narrated with meaningful words or simply left blank inside," ("Shomei" p.2). After reviewing the information, there appears to be no substantial risk of backward integration for the industry.

Product differentiation greatly impacts the buyers tendency to purchase what they so choose to purchase in most cases. Shomei cards possesses 3 different types of card lines which, as they are so described, cater to the total spectrum of the greeting card purchaser buying population. Supplier power is equally important in the industry in that the suppliers can control how much of a product can be in the public area for consumption and the varied nature of what it is that is available to begin with.

In other words, giving the buying public a more expanded choice of what they wish to buy in the first place. A key factor in increasing supplier power is the varied product which they provide, as well as the price at which they offer their product to the mass populous. "Shomei cards are distributed by a sales team that includes a strong network of upbeat service representatives—art school and college students who tend to patronize the stores they are stocking. These representatives are responsible for closely monitoring the inventory levels at retail outlets; shop owners should never have to ask for new inventory," Adding that, "Another strong point of Shomei Cards is our ability to replenish our shelves more quickly than any of our competitors.

We never run short on stock, because we can print small quantities on short notice. Because we can perform small card runs at the touch of a button, we do not need to keep large stocks of inventory on hand. This lessens our risk of being left with large oversupplies of cards," ("Shomei" p.2). Critical factors that increase supplier power come down to the ability to advertise the product to be sold through such means that are economically doable for the supplier. The financial cost of changing anything pertaining to business can vary in the nature at which the situation is in.

The choice to change a supplier can lead to great cost variance as it comes down to changes in already set cost for producing and shipping product, as well as the cost of previously developed business relationships that will need to be re-negotiated.ReferencesShomei Cards-3a.doc