Reasons of Popular product becoming unpopular
There are various reasons that contribute in making the product unpopular in the market. As a product manager, the report to the marketing manager on the issue concerning popularity product in the company in the meeting entail the pricing factor, social status change and the brand association. Change of the price of the product contributes to changing of popularity of the product accordingly. The increase of price on the product in the market leads to decrease in demand. The customers change the preference and get to the alternative substitute. This leads to decrease in the product popularity making it have a negative effect to the company. The second factor that contributes to unpopularity of the product is a reference group and their influence. This depends with demographic and the cultural background of the marketing.
Cultural belief of the community dictates the good and services marketed. Some of the beliefs prohibit the use of a certain product; therefore, it contributes to unpopularity of such products. The lifestyle of the community and social class contributes to the state of the products. The change of the lifestyle changes the use of certain products. It causes some of the products to lose popularity as people in different status class advances with product they use. It can be as a result of the increase in the price hence the living standard of community. Some of these products depend with the social status and lifestyle and if they get to a different status leading to unpopularity of the product. Gender and race also contribute to the state of the product and its popularity.
Part 2: American express and DHL express
Social, legal and economic environment
American express and the DHL express are companies that are in the same industry of transportation and logistics. They deal with the delivery of good and operate at international level. They experience the same environmental and structural factors that are related to the transportation and logistics industry. They are legally and socially recognized entirely making them have a competitive advantage. This has made them leading companies in the industry as their services are efficient and attractive to the investors.
Economically they are both companies have differences as the American express has an additional source of revenue. It has ventured in the stock market making it have more returns and high profit margin. American express is a global company which offers various services. They include the charge and credit card payment products and travel services at the level of worldwide. The company all deals with the stock market where it has a competitive interest rate in the market. This provides an advantage to the investors who trade with the international corporate in laddering their portfolio in their deposit return taking a significant risk.
DHL express company has used different tactics that have enabled the company to penetrate in the international market. The cost leadership is one of the economic factors it has employed to remain more competitive and increase earning. The DHL Company, in the logistic field, it has been able to earn profit by selling large quantity of the item using the lower price than a competitor in the logistic field. In the logistic system, there are many couriers providers of which cause the competition in the industry. The DHL management came up with the tactics of competing effectively by ensuring and setting the price relatively low to attract more clients and investors.
Managerial and operation
The two companies have similarly structural of management that makes a decision concerning the companies. They are international companies and have the management of the company that is representing it at level of their operation. This is subjected to the logistic industry. The only difference is on American express as it has the stock market that is attracting investor’s trade with it. This requires an extra line of the product management, unlike the logistic part. Operation of DHL express and American express are similar as they target larger market share.
Companies' culture and performance
The culture integration is effect that the DHL Express has employed in coping with the international market. It has been easy to invest in different nations. Thus, this gives the company chances to venture in a different area and regions with ease. This leads to open up for such reasons as some of the traditional products find their way to penetrate to the world market easily. It has diversified the in the market as it has projected to have high performance.
Promotion policies and strategic decision of the companies
Increase in the technology level, the pricing index of the product is relatively lower. The two companies in the logistics industry have enjoyed technology advancement as it has opened globalization. Globalization has brought about the integrations of the experts who have made delivery of different goods and services much cheaper. In the technological delivery, it has been much easy and faster leading price below. Therefore, the consumers in all parts of the world get a low price product compared to what they were to pay if the technological innovation would not be applied. Communication is another field that has increasingly shown much development in the DHL Company as it gets into the globalization. Before the globalization, the mode of communications was much low compared to the today communication. Electrified trains are much faster to connect in the logistic services. This mode of transport is the one of the safest thus even the insurance of the cargo is considerate low.
Connection of the different nations has been made easier through air transport. Thus, perishable products are transported and getting destination safe, early enough and on time. Globalization has opened up the world to be as a global village of which the DHL Company and American express has taken advantage off. This has made the discovery of the regions that it can invest with ease and less competition. This has opened the way to conduct the logistic and the transport industry in a manner that suits the discovered region. The flexibility of the company gives it an advantage of the market.
Decision making, leadership and communication styles
The two companies have similarity in the decision making and the leadership styles. Top management has the final word in the decisions that are made in the companies. It consists of the different structures as each respective country where they operate has the representatives who handle the challenges and makes a decision at that level. The top management decision affects the entire company such as the financial reporting and approval. Communication style depends with the technological level of the different countries. The line of the communication is from top management to the lowest employees in the companies. The policies from the managers are directed to the workers vertically. It is common to both firms in the application of styles as they share similar features in the industry.
The strengths of the two companies are listed. This shows the advantages that they are enjoying over others firms in the industry. It covers an area such as strength relating to the employees, financial, the resource availability and the location of the business. The companies' weakness and disadvantages that the business is facing in the market are identified. These include the absence of a new client and the product delivery in the new location. They are elements that cause low performance of the business.
Potential opportunities cover external opportunities of the business. They are technology, change in government structure, training programs diversification of the market and the partnerships. These factors contribute to the performance of the business enhancing performance. Potential threats are factors facing the companies in the logistic industry and lead to problem causing threat to their operation. They are competition increasing, high interest rate, unemployment and uncertainty on the market. They affect their operation directly and indirect leading to low performance.
Operation strategy and changing external condition
The companies have different operational strategies where their management designs them with the aim of making them more competitive. Organizational and policy making are based with the operational objective that can enhance big market share. Changing the external condition has an effect and impact to the organizational structures. It can cause destabilization of companies' goal hence lowering performance. This causes revenue reduction hence leading to low profit margin.
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