Eco 561 - Business Proposal

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Barrier to Entry

One strategy to bar new competitors against entry into the market and keep customer returning is to create a loyalty program for those returning loyal customers. “Brand loyalty is more than simple repurchasing. “ (Jones) Customers come back to purchase from a particular brand, they may have to purchase from a particular vendor because of situational constraints, lack of variety for alternatives, or just plain convenience. “True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior.” (Recichheld, 1990) Loyalty to one’s product keeps customers loyal and helps with referring other potential customers. With the loyalty from Thomas Money Services, Inc., to their products and the loyalty from their customers, they have a strong advantage over their competition. They can always create a stronger competitive advantage by understanding that their customers are what their needs are and making sure they are able to satisfy those needs.

In conclusion, to maintaining the goals of being a competitive and profitable company, Thomas Money Service’s business proposal has to consider the current market conditions for which the company performs. The success rate that Thomas Money Services and FGI have constantly maintained over the years is the basis for the business proposal, in order to increase revenue, create profit maximization, make a mixture of products and product differentiation, develop pricing and non-pricing barriers to the industry and a reduction of costs. Under this business proposal, the design and strategic approach is to make sure that the continuance, profitability and stability of the company based on expansion, growth and development for years to come.

References:

Cliff’s Notes (2013) Retrieved from Cliff’s Note: www.cliffsnotes.com/more-subjects/economics/monopoly/profit-maximization

Jones, M.A (n.d) Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Cost and Managing Their Differential Strategic Outcomes

McConnell, C.R. Brue, S.L., & Flynn, S.M (2009) Economics: Principles, problems, and policies (18th end)

Morris, P. (2012) Construction Industry Market Report Fourth Quarter Outlook 2012 retrieved from asecom: www.aeacom.com/deployedfiles/internet/capabilities/programs

Reichheld, F.A (1990) Zero Defections: Quality Comes to Services: Harvard Business review, pp 105-111