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The social welfare of the businesses increase and they look to increase the welfare to the customers. There can be price discrimination with the use of the Internet as the customers are aware of the products. The business houses may look to decrease the price of the goods to attract the customers. The e business model of Amazon is based on offering products at lower costs. This helps in the increase of the social welfare. With the rise of the Internet, various other business opportunities are open for the entrepreneurs.
Complementarities: The model has described the services as the complementarities. The services of the e business model should be quick and precise. The basic concept is to provide the customer’s with valuable information that helps in the development of the business.
Lock in: The lock in period of the business houses is relatively low while using the e business model. The search for customers’ get quicker and the cost is less than that of the traditional process. Therefore, the lock in of the company is automatically reduced. The company may also adopt a model to produce what is demanded.
Novelty: In the e business model, there has been a rise in the novelty process with the rise of innovation. The business houses look to attract the customers with the use of innovative techniques. Amazon and Ebay offer discounts and gift vouchers, which encourage the customers to shop online. (Kirikova & Grundspenkis, 2002; Pp 378-379)
Porter’s value chain activities describes that a relation exists between the firm’s activities regarding the suppliers and the customers. The value chain activities of a firm can be described as follows:
With the advancement of technology and the use of the Internet, the value chain of a company can be related easily. The effectiveness of a company has increased with the use of the Internet. All the components in the value chain have been benefited by the use of the Internet. The
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(60 marks) 2. Analyze the differences you would expect to find in the ways in which a research study is reported in an academic journal article and daily newspaper. (40 marks) Part 1 There are six main sections in which research findings are typically communicated.
Advertisement is the means to offer product to the customers by creating awareness about the company and establishing a brand about what it is offering. There are several ways to advertise a product, i.e. word-of-mouth, newspaper, internet, radio, cinema and television (Ilango, 2011).
NEXT has been very particular on reducing waste and increasing its waste recycling strength from various manufacturing to selling functions of its products. NEXT is a signatory to the British Retail Consortium’s Climate Change Initiative, ‘A Better Retailing Climate’, which includes dedication to minimise waste and packaging among other initiatives.
Operating synergy is different. It focuses upon including considerations involving the scope and scale of the economy. This state of Operating Synergy occurs when two firms merge when they are both already manufacturing and operating below their actual capacity.
However, little is mentioned about the stakeholders, the people whose lives depend upon this decision as to whether they will be awarded a diploma. Several questions must be answered to determine what is best for these students, and all future students.
These projections are then discounted back to the present by the risk-adjusted, weighted-average cost of capital. This cost of capital accounts for interest payments and/or equity returns expected by investors in the Company over the projection period.
Sophisticated investors such as VCs, institutional investors and corporate investors generally begin the valuation analysis by examining management's cash flow projections to test the underlying assumptions and business model.
For example, Combining Company A’s $100,000 returns and Company B’s $250,000 returns will generate a $ 350,000 portfolio (combined) $ 350,000 returns. On the other hand, combining company B’s $250,000 returns to company C’s $100 return will be more
Exchange rates therefore directly affect businesses since changes in prices can have an impact on the import and export of commodities resulting in increments and reductions in the cost of raw materials that
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