In countries where references are important, startups find it difficult to find new customers. However, by using verified lead sources provided by websites like www.customleads.net , it is possible to find customers who are willing to give new companies a chance.
Archive for the ‘business’ Category
Leads for startups
Friday, May 15th, 2009Posted in business, entry barriers, online, price | No Comments »
Pliable media
Monday, February 9th, 2009One of the ways big companies make it difficult for competition to survive is by ensuring that the media is pliable and does not carry any unfavorable stories or news about them.
The media is usually dependent on these companies for advertising revenue, so they are usually willing to oblige. The ultimate losers are the consumer and vendors, who do not know the true story until it is too late.
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Price wars
Saturday, January 31st, 2009When product or service is launched, the new entrant tries to gain marketshare from the older, more established companies by offering discounts. The established companies may remain complacent and not do anything, especially if their product quality and customer support cannot be matched.
If the established companies is financially strong, they can try to kill the competition by offering their product at a even lower price. Finally, the company that can sustain losses for the longest period of time will dominate the market.
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Dumping
Friday, January 30th, 2009In some countries, the cost of manufacturing is very low due to the low cost of raw material, manpower and government subsidies. These countries are able to export their products at a very low cost.
The manufacturers in countries which import these cheap products are not able to compete, as a result of which the industry is destroyed. The manufacturers association will lobby the government to impose an anti dumping duty, an import tax, which makes the imports prohibitively expensive and protect the local industry.
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Monopolies
Thursday, January 29th, 2009Since monopolies can often dictate the price for an essential product or service, most government have regulations and laws to prevent the formation of monopolies. In case a company seems to be taking a very large market share, leaving the customer with no choice, the government usually takes legal action.
This usually involves:
1. Splitting the company into smaller organizations
2. Imposing fines and other financial penalties
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Manufacturing entry barriers
Sunday, January 25th, 2009Compared to software and internet, the entry barriers for any manufacturing related operation are very high. Thousands or millions of dollars have to be spent on procurement of land, equipment, installation of equipment and raw material, before a product is actually manufactured and sold. Permission has to be taken from several government organisations. Economies of scale make it easier for large companies to manufacture a product cheaply by using automated systems.
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Business ideas
Sunday, January 11th, 2009One of the main fears while sharing a business idea is that it can be stolen. People may spend a lot of time , money and other resources spying on you to find out your future plans . But no two people are alike and they will find it difficult to find someone who can implement the idea, the way you envisaged it.
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Profits
Monday, October 20th, 2008To make money in a business consistently, it should not be easy for competitors to enter the field. The entry barriers for the business should be very high.
This is usually achieved by:
1. Having a monopoly in the business – usually for essential services
2. A large capital investment is needed to get the business started
3. You discover or invent a new product, service or technology after spending a lot of time researching and experimenting and keep it a secret.
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Business entry barriers
Monday, October 20th, 2008Before starting any kind of business, it is important to carefully evaluate the entry barriers for starting the business. If you are just starting the business, you may not have a lot of funds to invest since banks and other financial institutions are usually hesitant to lend money to your business. The only investment you will be able to make will probably be your own savings.
If you have a good business idea and it is very profitable, other companies in related fields will also be interested in it. If they are already established companies, in addition to having more capital to spend on development and marketing, they will already have a ready customer base, to whom they can sell the new product or service.
So if the business idea is based on a technology which is easily available or widely known, the entry barriers will be low. Initially, you may make a lot of profit, but over a period of time as the competition increases, the margins will reduce and some of the larger companies may be willing to suffer a loss initially to gain a foothold in the market.
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Entry barriers
Monday, October 13th, 2008Entry barriers to starting a business
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