Introduction
The company provides different types of services in the horse industry. In this paper, two business propositions are compared and contrasted. The first company is American Horse Company, which offers horse training services. The second company is the equestrian instruction business named Equestrian Coach.
The peculiar detail regarding the second company is that the Equestrian Coach is an online platform that provides video instructions on this topic. American Horse Company, in its turn, works primarily offline with horses. These two businesses cannot be called rivals because they work in the same industry, but their propositions differ. Regardless of their similarities, they have more differences that make their services unique. In both cases, understanding the various forces that affect a business’s success shapes the effectiveness of the company’s decisions.
American Horse Company
American Horse Company offers a variety of horse-related services to clients. The services include working with problem horses, un-started, green broke, and young horses, and instructing inexperienced horse riders (“Total horse makeover,” n.d.). For example, some horses buck and strike out when being saddled or when biting people. Their owners understand that there are problems with the horse, and they do not want to harm other individuals. As a result, they need professional assistance to change their animal behavior. Similar things can be applied to young horses who do not know how to be good partners because they lack training.
American Horse Company proposes programs where professionals teach young horses how to develop the appropriate habits and then return them to their owners. In addition, if the person wants to become a more confident rider and learn to take care of their horse, they can also find training courses in the company (“Total horse makeover,” n.d.). It states that the American Horse Company proposes various services for people who have a horse and want to improve their experience of owning it.
Equestrian Coach
Equestrian Coach has a narrow specialization, focusing only on the services that provide clients with training. The company pays much attention to creating and structuring online videos on equestrian topics. All materials are available from any part of the world, and people have the opportunity to improve their understanding of this discipline at home.
They can also practice on their horses without the supervision of the coach, which is an essential issue for some individuals. At the same time, it is possible to find programs with offline equestrian coaching, and the company has such propositions in different cities (“Ask the expert,” n.d.). The content on the company’s website effectively promotes the offline training programs conducted by professional coaches.
Comparison
Therefore, the companies’ descriptions show that their services are slightly different, and American Horse Company has more programs available to clients than Equestrian Coach. At the same time, the ways these companies work are also different because there is an emphasis on offline activities and direct interaction with horses and their owners in the American Horse Company. For Equestrian Coach, online services are represented more, and this business uses technological advancements more than American Horse Company, which uses online services for self-representation and promotion.
External Analysis
Among the external market forces that determine the direction of the services’ development are the social, economic, and technological environment. As mentioned earlier, the spread of technologies, particularly high-speed Internet connections and the availability of online video courses, was essential to the business development of Equestrian Coach. At the same time, American Horse Company uses online resources, including the official website and social media accounts, to promote its services (“Total horse makeover,” n.d.). In both cases, clients can communicate online via social media, comment on videos, and share their experiences with these companies and their progress (“Ask the expert,” n.d.). It allows other people to see the results of these two businesses’ work and evaluate their position in the horse industry.
Economic factors are crucial in such companies’ horse training and riding popularity. This hobby is comparatively expensive and requires a lot of money and time from people. As a result, equestrian services are not very popular among the target population during financial crises because they are not the people’s basic needs (Butler, 2023). Social factors can be regarded as people’s perception of equestrian activities. For instance, there is the stereotypical perception of equestrian sports as an elite hobby for aristocrats (Butler, 2023). This attitude and popular image of the horse industry directly affect the popularity of the American Horse Company and the Equestrian Coach. Therefore, the major forces that affect the business’s success in the discussed cases are technological development, the economic needs of the target audience, and the trend toward horse riding, which determined the direction of the services’ development.
It is necessary to discuss external business concerns, such as market forces. They are predominantly connected to the economic side of business and the country’s overall financial situation, as already mentioned (Syverson, 2019). For instance, the revenue and expenses of the business and the availability of equipment and supplies are significant components of business success in both cases (Syverson, 2019). In the situation with American Horse Company, the expenses of the business and the availability of equipment required for offline work with horses and riders are more important than technological innovations. Even though these economic concerns are vital for Equestrian Coach, technical issues are more critical to this business due to its predominantly online essence.
The cost-revenue relationship of a corporation is significantly impacted by the many market structures that determine pricing power, competitiveness, and profitability. Businesses are price takers in a market with perfect competition, which means they have no control over the cost of their goods. This situation is explained by the fact that there is fierce competition and all the items are the same. Companies cannot raise prices to offset high expenses because of the nature of the cost-revenue connection in this market structure (Syverson, 2019). Instead, they must effectively control their costs to maximize profits. The market sets the price, and companies that charge higher than this risk losing business to rivals. The emphasis is on minimizing costs to maximize the difference between total income and total cost (Syverson, 2019). The horse industry is an example of a competitive market, making these claims applicable to the cases of American Horse Company and Equestrian Coach cases.
The general economic context is another crucial detail to consider in evaluating the functioning and success of the discussed companies. A company’s revenue and expenses can drop dramatically due to a market failure, creating unstable financial conditions. When products and services are not allocated efficiently, it is referred to as a market failure and frequently results in a net loss to social welfare (Syverson, 2019). Many factors, including monopoly power, public goods, externalities, and information asymmetry, may contribute to it (Syverson, 2019).
Internal Analysis
Internal concerns are equally crucial for the success of business development in the horse industry. An organization’s values, attitudes, and practices that shape how its management and staff interact, perform their duties, and conduct business are referred to as its corporate culture. Corporate culture is often inferred rather than clearly stated, and it naturally evolves from the collective characteristics of the individuals the organization hires (Syverson, 2019). The dress code, work hours, office layout, benefits offered to employees, employee turnover, hiring practices, how staff and clients are handled, customer satisfaction, and all other facets of corporate operations will all be indicators of a company’s culture.
The horse industry is a comparatively traditional sphere where the roles and the ways to perform certain services have been preserved for centuries. Both American Horse Company and Equestrian Coach follow these rules, which state that their internal organizational culture is expected and not revolutionary. They have a long history of work, which gives them authority in the field of equestrian services. People know the quality of the services they provide, which is essential for attracting new clients who will use them. It states that both American Horse Company and Equestrian Coach are successful companies, and that the structure of their internal processes significantly impacts them.
Conclusion
American Horse Company and Equestrian Coach work effectively in the horse industry, and regardless of the differences in the services they provide, they have much in common. The investigation shows that market failure may significantly affect companies’ revenue and cost structures. It may result in lower demand for goods and services, higher prices, and more uncertainty. Therefore, for organizations to effectively design strategies to reduce these risks, a thorough understanding of market failure and its possible repercussions is essential. In addition, internal factors such as organizational culture and company reputation affect their popularity with existing clients and their attractiveness to new customers.
References
Ask the expert. (n.d.). Equestrian Coach.
Butler, C. R. (2023). Charleston horse power: Equine culture in the Palmetto City. University of South Carolina Press.
Syverson, C. (2019). Macroeconomics and market power: Context, implications, and open questions. The Journal of Economic Perspectives, 33(3), 23–43.
Total horse makeover. (n.d.). American Horse Company.