How the Product Affects Success

1. How the product affects success

Emma decided to open up her own business. As a product she chose DVD. An advantage to opening a DVD store in her town is that there is only one other rival company in her town. She also chose to open a business of a product that she knows that customers want and that she knew how to provide.

But a disadvantage is that in this day and age prefer to pirate movies from online rather than paying to rent the movie. And also in this time there are also other ways to rent DVDs such as ordering them online or through the mail. Opening a DVD store also means that in terms of safety she will need to put empty DVD cases in the front and have the actual DVDs somewhere else. DVDs are also very fragile products. They might work well but as soon as there are too many scratches she will need to order new ones. She will also need to check to see how many of them actually obtained damage so you need to be insured.

She could have decided to open a clothing shop. It doesn't matter which town there is there are never too many clothing stores. As long as the prices are reasonable as in low she will always have customers.

2. How the pricing effects the products

Emma believes that she could offer a wider selection of DVDs than that of her competitor at a lower price. That gives her a slight advantage because she has a product that her competitor does not provide.

But how will her customers know what she provides? She needs to set up a good marketing plan because if the customers do not know what you provide then you will not be able to sell anything, because the customers know little of the existence of her company.

To keep the customers happy she would need to maintain a low price and good service. But to generate profit she will also need to cover all her expenses with her revenue. How can she do this? She is just starting up business so she will need little employees. It is best to have 2 employees. She can be the manager. This way she can make sure that her business is run the way she wants it to be. And one of the employees can stack the DVDs the other works at the cash register and an employee to retrieve the DVDs from the back. This will make the work more efficient letting each employee have a specific task.

Another way that she is trying to keep her rent expense low is by renting a place in an area of mid-priced stores rather than the exclusive shopping mall. But