MileStone 1 - Business Recommendations

Mile Stone 1 - Business Recommendations
      The analysis by Team C of Larson, Inc. provides information to a company involved in a purely competitive market. Larson, Inc. falls under this business model because to the large number of competitors, lack of product differentiation and few barriers to entry (McConnell, Brue, & Flynn, 2009). The research and recommendations of Team C in these areas help the management of Larson, Inc. make business decisions for the future. Team C provides information to help determine what areas to consider changing and which business alternatives have the best financial outcome for the company.
Pricing Strategy Recommendations
      For any company to be successful they have to have a creative and sold pricing strategy that will separate them from the others.   As with any company the goal is make a profit that exceeds costs. In today’s world everything needs a battery from a toothbrush to an airplane. However with the batteries lasting longer and longer, poor economic conditions and other factors facing the industry all sales are down. In review of the American and German markets it appears that there needs to be a different pricing stagy in place in both markets

      American Market
      In review of the American market there appears to be more opportunity as their exports consists of 51.5% (machinery and equipment, motor vehicles and supplies, aircraft and parts) of goods associated with some type of use of batteries.   As a result, Team C recommends that Larson switches to a low price strategy.   As long as the price of the battery does not go below its production costs and is cheaper than the competition Larson should be able to increase its profits at the expense of the competitors.   According to McConnell’s game theory, having a low price strategy and assuming the competition has a high price strategy, Larson should realize an increase in market share as well as...