Lack of capital is one of the most significant obstacles faced by young business owners. Since they may not receive backing from external sources, they rely primarily on their funds to fund the firm. Rarely are these savings sufficient to cover all of the start-up costs. This lack of funding also hinders the execution of the business plan. The proprietor must devise a plan that is entirely funded by his savings. There have been indications that these savings are insufficient to meet all of the needs. To be successful, any business requires meticulous planning and management. In order to operate the firm successfully in this industry, experience is essential. Management and planning skills are lacking among inexperienced businesspeople. Obtaining the most popular products or services in a specific region demands experience as well. Prioritization of the activities is an additional challenging and experience-required aspect. The new businesspeople lack connections with the seasoned or highly skilled workforce in the region. In the business sector, it is more difficult to establish a strong and substantial network of like-minded individuals (Comite, 2009).
Niche products are those that are designed to meet a particular consumer need. In a particular form of niche market, the products for sale are unique. Examples of specialized products include premium items like women's handbags. In addition, there are opulent hotels and stores, as well as glassware.
In a market where just one company specializes in the manufacturing of a niche product or service, the level of competition is minimal or nonexistent. Typically, a small number of people are targeted by this company's marketing efforts. Therefore, it is less expensive and easier to promote to every buyer. As these items are primarily luxury items, the consumers who will be targeted are those who can afford to purchase them. The marketing structure will be simplified and easier to implement as a result. The benefit of focusing on the niche market is that it is less saturated than other market types. It is advantageous for niche product companies that there is little rivalry in the marketplace. The niche product companies targeting the market would be able to determine which products sell well in a particular region. Increased sales will result from a greater grasp of market developments and the ability to adjust to them.
Reasons why consumers are willing to pay extra for exclusivity
Consumers assume that exclusivity is timeless and, as a result, that its high cost is warranted. A product that is unique on the market would command a high price from purchasers. Over a specified length of time, a product's market is likely to evolve. When similar products are offered to the market, these alterations are frequently pronounced. For example, these goods are consumables such as juice. Different brands of juice exist. The market position of these brands may fluctuate occasionally. One of the things that can influence the market of a commodity is the price of a brand. Most people are unlikely to purchase expensive brands. However, in some cases, folks may feel good about purchasing a thing with a high price tag. Consequently, the price of the commodity may differ based on the location of the business.
Additionally, there is the product's quality. The product's marketability increases as its quality increases. Additionally, the brand name might impact the market. It has been demonstrated that easier-to-pronounce and-remember names result in greater sales. Every business should select an easily-remembered name. The packaging of a product also has a significant impact on its marketing. The size of a product's packaging must be appealing to consumers. A product should not be packaged in little quantities, as this will give the impression that it is pricey to the consumer (Urban Outfitters, n.d.).
A large package deters consumers from purchasing consumables such as juice. Consequently, it is advisable to package the goods in a variety of containers. The packaging should be appealing as well. The texture and color of the packing material should be pleasing. With juice, the color should be appealing, such as orange or any other vibrant and tasty color.
Additionally, a product's brand name should be straightforward to translate into various languages. Commodities utilized worldwide should have names that are straightforward to translate into other tongues. For example, English names used as brand names should be simple to translate into Chinese, Japanese, Spanish, and other languages. This will entice buyers to purchase the goods under the impression that they were made locally. A brand's name should also allude to the product's advantages.
This will entice consumers to purchase the goods over alternatives. Consumers will be encouraged to purchase the product by the term 'Energizer.' Consumers may be dissuaded from purchasing products with names that are unrelated to the product's benefits. The brand names of the products lower the expense of looking for them among others that are comparable. Because the product's name is well-known, consumers will not seek for it. Additionally, advertising expenses will be reduced. The majority of consumers will be familiar with the goods, hence reducing the expense of advertising (Pies, Hielscher & Beckmann, 2009).
Niche performer erodes
The niche player can chip away at the competition by pursuing distinct sales, for instance. Amazon.com is one such example. It first used manual methods for advertising and selling its items, but eventually digitized its operations. A consumer can just visit the company's website to view the available products and services, as well as to purchase them.
Providing a superior product is another method for gaining an advantage over rivals. Starbucks is an example of a corporation that has implemented such a policy. It offers a coffee experience in the European style, as opposed to the typical coffee. Currently, there is a great deal of competition and the coffee sector is saturated. One more is specializing on a certain product line. Ehobbies.com is an example of a retailer who has used this strategy. This store specializes in hobby-related items. It provides an extensive variety of common brick and mortar.
The second task
A draft email addressed to the largest client
It has been a pleasure to work with you for such a lengthy time period. We greatly value your commitment and faith in our work. In light of this, we would like to tell you of recent adjustments made to a company's budget.
To stay afloat and maintain a robust level of competition, our rapidly expanding firm must be constantly evolving. As a prosperous and successful maker of high-end blue jeans, we believe that quality control must be significantly strengthened in order to maintain a competitive advantage on the market. Our organization must reorganize its finances in order to achieve these objectives. Specifically, we feel it would be prudent to reduce travel expenses and pay greater attention to the design and production processes. We hypothesize that web conferencing can serve as a feasible substitute for less significant meetings and events that are amenable to online discussion. We assure you that online meetings will not present any challenges, and all information regarding our sales and product launch will be posted on our official website. Additionally, minimizing online communication can save you both time and money, given that everything can be purchased online. We also guarantee that the purchased products will be of the greatest quality, as the introduced improvements are intended to improve the manufacturing process and the quality of the design.
The rationale for modifications is predetermined by our significant worries over the market condition. As our business is of utmost importance, all of our initiatives are geared toward enhancing and sustaining a steady increase in sales and customer demand. We hope that the proposed changes will not impede our future productive collaboration, but that you will remain in regular contact with us in the future.
To fill open leadership roles, an organization's board should carefully select candidates with exceptional leadership abilities. This is due to the fact that they are the source of incentive for their coworkers. Employees should be treated with respect so that they can be more productive at work. When the employees do anything positive, they should be rewarded. Financial or non-financial rewards might be provided to employees. Employees, on the other hand, can be penalised for failing in order to prevent them from repeating the same error. However, this should not be done in a way that undermines employee morale. The leader must however compensate the employees or subordinates fairly or justly. Regarding their rewards, there should be no bias.
As the leader, the manager is required to play a significant part in the monitoring and management of employees, as well as the manner in which they carry out their responsibilities. In order for a leader to assess the production of others, supervision should be strict. In addition, supervision should be meticulously organized such that the individuals being overseen do not feel abused. The leader is also entrusted with the authority to train subordinates on new jobs or when they feel their performance is subpar. Employees should also anticipate receiving training that will motivate them to learn more (Cowton, 2009).
A manager should possess strong communication abilities. Good communication between the manager and the other staff will foster understanding between them. At all times, the leader should have a good attitude. He should be able to transfer this optimistic disposition to the team members. Moreover, he should possess an expressive tone. The manner in which the leader conducts himself or herself will affect the efficiency of subordinates. The individuals who shape the work environment are the leaders. The managerial or transitional theory is comparable to the trait theory since both indicate that the attributes of a leader are vital to any type of leadership (Thomas, Zolin & Hartman, 2009).
Comite, U. (2009). The transition of a contemporary firm from its assets and liabilities statement to its environmental ethics account. 9(2), 100-120, Journal of Management Research C. J. Cowton (2009). Accounting and the ethical dilemma: recalling the professional body 39(3), 177-189, Accounting & Business Research. Pies, I., Hielscher, S., & Beckmann, M. (2009). An odontological approach to corporate citizenship that focuses on ethical obligations and the societal role of business. Business Ethics Quarterly, 19(3), pages 375 to 401. G. F. Thomas, R. Zolin, and J. L. Hartman (2009). The significance of communication in fostering trust and its influence on employee engagement. 46(3), pp. 287-310, in Journal of Business Communication. Inc. Urban Outfitters (n.d). Webb, J.W., Tihanyi, L., Ireland, R.D., and Sirmon, D.G. (2009). Entrepreneurship in the informal economy: You say it's unlawful, I say it's legal. Academy of Management Review, 34(3), pages 492 to 510