Business Recommendations for Larson Inc.

Business Recommendations for Larson Inc. ECO/561 Business Recommendations for Larson Inc. In this menstruum economic climate, organizations be faced with heavy competition and shrinking margins. To remain competitive, organizations motive to find a way to reduce manufacturing costs, reduce determine by developing a set strategy and agreement what it takes to differentiate their returns. Market economists can help organizations identify play that support marketing, competition, price strategies, and product differentiation by their analysis and theory of practice and use of economic principles (Author, 2009). Larson Incs current business organization will be examined within the context of economic theory to uncover strategies and recommendations applicable to pricing, non price barriers to entry, and product differentiation. Company and Market Overview Before reviewing the aforementioned strategies, one moldiness understand the current market environment in which the family is operating. Larson Inc (Larson) is an international company operating mainly in the States and Germany supplying batteries for electronic devices (University of Phoenix, 2010).

The company is operating in a monopolistic competitive market characterized by close substitutes, three-fold manufacturers and little product differentiation. This competitive environment coupled with rising unemployment leaves consume for their products highly elastic in both argonas (Author, 2009). The company must hone its price strategy and shift the demand curve to the right to decrease elasticity of demand. Pricing system and Recommendation The purpose of a pricing strategy is to incorporate pricing objectives, pricing methods, competition and various other factors that help in creating a plan for moving products to market (NetMBA, 2010). There are two pricing recommendations that need to be made for Larson Inc. in regards to both the American and German divisions. In America, the competition is... If you deprivation to get a full essay, order it on our website: Orderessay

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