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Essay / Research Paper Abstract
This 4 page paper looks at four subjects. 1. How some organisations can generate superior profits compared to their competitors even in unattractive industries. 2. Whey some e-commerce models will be more successful than others. 3. How the national environment can influence the competitiveness of a firm. 4. The importance of measuring the success of strategies.
Page Count:
4 pages (~225 words per page)
File: TS14_TEstrtaq1.rtf
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Unformatted sample text from the term paper:
many sources of cost advantage that lead to superior profits. The first may be the potential of economies of scale. For any good or service that is produced or provided
there are twp types of costs; the variable costs, these are the coasts that vary dependant on the number of goods made, such as the raw materials, and the fixed
costs, these are the costs that stay the same no matter how many are made, such as the cost of the insurance in the building etc. Where more goods are
made the variable costs do not change, but the fixed costs become promotionally less for each unit produced. However, with the benefit of economies of scale it is also possible
to exercise more power over the supplies (as noted in Porters Five Forces model) and gain better terms that lead to increased profit. Other sources of superior profit may involve
careful supply chain management to reduce costs or increased access to the market or difficult to reach niche markets. It is also possible that differentiation may give features that
are desirable which may also be protected by patent, and increase the level of sales, increasing profit and also leading a company closer to the cost advantage. Question 2
There have been the development of many e-commerce models, some are more successful than others. Porter argues that his competitive strategies and analysis models are equally as important in the
e-commerce environment; however other models that take aspects of disintermediation have been mixed. The difficulties with e-commerce is manifold, the first is that in reality this is still a
relativity new medium and as such the way in which the companies can compete successfully are still developing and the majority of models look to the older models and try
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