By analyzing the financial statements of competitors, a company is able to find new potential markets hence invest them. A company can determine the competitors’ weaknesses hence capitalizing on them. This gives it an upper hand in the market.
The financial statements provide financial benchmarks for the company. It becomes possible to make compare with successful competitors hence making appropriate strategies for success.
Financial statements give an insight into the output and operational costs of the competitors and it becomes possible to determine whether the production and operational costs are high or low when compared to the competitors. Adjustments are thereafter made where possible.
There are several ways to ensure sustainable cost advantage. This includes the raising of the prices so as to increase the profit margin, reducing the production and operation costs so as to minimize the expenses, including higher margin items in the sales mix, going for less costly yet quality raw materials and spending more on marketing so as to increase the sales.
The relative cost of goods and services is significant in determining the competitive advantage of the business. This is vital in determining the profitability of the business. A company can only supply its goods or provide services to the market if the prices are higher than the production cost.
Understanding the relative cost helps a company to compare its prices to the other competitors. It therefore becomes easy to predict the reactions of the competitors incase of an increase in prices. It also forms a basis for the prediction of price wars.
By understanding the relative cost, a business can know whether it has a competitive advantage in terms of cost and whether this is sustainable. It is possible to know how low to bid so as to win a contract against competitors. It also becomes easier for a business to make cost reductions without negatively impacting its profitability.
The cost structure constitutes the expenses that are incurred in ensuring that a product or service is available for consumption. By using cost structures, it is possible to prevent the product or service from being underpriced. The market trends are always changing hence the need to produce products and services that suit the changing market.
Through differentiation, it is possible to determine the quality of a product which is supposed to be proportional to its price. A high quality product might for instance have several features that low quality products lack. It is therefore highly priced.
The product differentiation strategy is not the best growth strategy because the differentiation does not always relate to the consumption of the product or use of a service as the perception of quality by the consumers might be biased. This could be attributed to advertisements and the need for social pleasure.
Market profitability analysis is important in determining the best markets. It helps in determining consumer behavior hence making decisions based on this. Through such analysis, it is possible to determine the most profitable markets. This determines the marketing strategies to be employed, the pricing and quality improvement.
Career Objectives
In the next 6-18 months, the main activity would involve starting a private professional counseling firm. This would help in the development of counseling skills and put whatever has been learned to practice. It also provides the required experience. It will also help in networking hence building a greater customer base.
One of the projects to be done at the current employment to meet the career goals would be to learn the day to day operations of this counseling center that is non-profit making. This involves understanding the counseling website which meets the counseling requirements of online clients who are not able to visit the firm.
The website is interactive hence enabling the clients to chat with the counselor online hence the right advice is given to the clients at the right time. This will help in the acquisition of the hands-on experience that is needed in professional counseling.
In the first stage, it would be necessary to determine the fees required for the classes. Such information can be found on the fees structure. It is also important to know the courses offered so as to select the right combination that would be required for the certification. This can be found from the time table.
While doing the masters coursework, it would be appropriate to find out whether there are any scholarship programs being offered. Such information might be difficult to find since scholarships are never guaranteed.. It would be important to note whether the place for the internship deals with professional counseling.
One has to know the fees charged before the license is issued. While setting up a private professional counseling center, the approximate cost for setting up the center should be calculated.
Such information can be obtained from the business plan of a similar project. It is also important to identify the registration processes to be undergone before setting up the center. Such information can be found from the offices of the relevant authorities.
References
Kumar, D. (2010). Enterprise Growth Strategy: Vision, Planning and Execution. London: Macmillan Publishers.
Meuleman, M. (2009). Sustainable development and the Governance of Long-term Decisions. Oxford: Oxfford University Press