Case points Flashcards
What are some economic factors that can impact market growth?
Unemployment rate
Disposable income
Consumer confidence
Interest rates
Currency strength
Petrol prices
Reasons to acquire a company
Increase market access
Diversify companies holdings
Pre-empt competition
Target company is a threat
Inherit management talent
Obtain patents/licenses
Obtain products
Expand distribution channels
Expand customer base
Increase shareholder value
Describe 3 pricing strategies
Competitive analysis
- compare to other companies e.g. their products, if there is a supply and demand issue, and how they respond
Cost-based pricing
- add up costs and calculate profit needed to breakeven
Price-based
- what are people willing to pay?
How can you increase sales?
Expand distribution channels
Diversify products
Invest in segments with highest future potential and margins
Marketing
Acquire competitor
Adjust prices
Seasonal balance
Find niche with a high barrier to entry
What are key drivers for market growth?
Technological advancements
Consumer demand
Globalisation
Economic conditions
Regulatory environment
Infrastructure
Access to capital
