Last Updated 27 Jul 2020

Competitive market

Category economics, Market
Essay type Research
Words 817 (3 pages)
Views 408

All business has aims and objectives. Some more than others. My business has aims and objectives. My first aim is to get my business up and running and making sure it survives in this competitive market. I intent to break even and generate an adequate level of sales for me to make a certain amount of profit. My objective is to let my business generate enough sales so I'll be able to repay my debts in little instalments. If I don not generate enough sales to repay my debts (survive) then my business might go bankrupt and I don not have limited liability (partnership) so I would lose more than I would gain.

Therefore I need to ensure that I can generate a good level of sales. It is critical that my business is able to survive because this would determine whether my business successful or not. My next objective is to increase my sales. So my next aim is to gain more customers by offering cheaper products and better services. This could be achieved by making sure staff are friendly, kind etc toward customers and use different promotion to attract more people. The product should be at a high standard and affordable so this encourages custom.

I could offer special deals and offers to tempt the customers to want to spend more. I will be using psychological pricing to make it seem like that they are saving money instead they are increasing my sales. Which should result in me having a larger market sale. It important for my business to increase sales so I can repay my entire debts and bills etc. After this the amount of profit that I will make will be retained profit. After my initial business start up if my sales do not increase it could mean that my business is just coming on steadily but not making much profit.

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ac. Aim 3 is to maximise my profits. In order for to do this I have to lower the prices of my products so more potential customers would come to my cafe. If I decide to sell my products at a high price there would be less demand. I intend to sell them at a low price, which will increase demand, which is beneficial. So instead of selling my products at a high price and having a low level of demand but making big profits. Which I would not be able to do because of the type of market that I am in.

I will sell my products at a low price, get more of my products sold and make small, continuous levels of profits. Eventually I will get a higher profit margin. This has mass appeal and is good for people who have a lower income. By maximising my sales/profits this means that my business is doing well and it is a successful business. If my sales were continuing to increase in size because of better custom then this would lead to growth. So my next aim is to expansion and growth. I can do this by setting up my business in different places in London.

So I have subsidiaries in different areas. From then onwards I should receive a larger market share. And if the business is doing extremely well it can become an Ltd and will be a franchisor. But there is the risk of failing and it is expensive so I will set up each subsidiary individually to make sure their doing well. I should have enough money to pay back all the expenses. And if I fail I will lose everything. If I don't expand my business my business will continue to do well but will never live up to its full potential.

Growth and expansions are not always good because if you expand/grow too quickly you can not retain control. So with good quality products and good service this should lead to customer satisfaction. Which means I would have good custom and a good reputation. It is good to have a niche market because you can target specific markets and gain profit easily. There is no competition and there is not a lot of niche markets in the world. The more rare something is the more people are willing to pay for it that is how they make so much profits.

Even though they have fewer customers, they still make big profits because they offer a special product. I can not target a niche market because nearly all types of foods are sold everywhere and even the need for different ethnic food is being met. This coursework that I intend on completing will be based around setting up a business as part of my business studies coursework. I will complete it using the knowledge and information that I gain form my business lessons, and implement them to develop a business studies project. For the coursework I will cover a number of areas in business.

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Cite this page

Competitive market. (2018, Jul 10). Retrieved from https://phdessay.com/competitive-market/

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