Answer To Correcting Marketing Failures Case – Case Study Example
One of the key aspects of Compassionate Capitalism is its focus on utilizing all the surplus revenue and production capa to actually serve all the segments of the population. Surplus revenue is reinvested into the business in order to ensure that business could meet social objectives. It achieves its objectives in a manner which is financial self-sustaining so all members of the society are able to afford it. This philosophy is therefore based upon earning profits as a mean to achieve an end and not as the end itself. It is, however, important to understand that compassionate capitalism may not sustain in economies where profit as the major driving force for engaging into business activity. Compassionate Capitalism can actually correct market failure by offering goods and services at prices which is within the reach of many rather than selling highly profitable products to few.
Social businesses can actually offer competitors an alternative avenue to look for new channels and markets where they market and sale their projects. The ability of the companies described in the case study to actually remain profitable and still achieve their objectives clearly suggest that other firms can also take this opportunity to enter into low cost high volume businesses while at the same time controlling pricing as well as production. Social businesses can actually allow their competitors to learn more about controlling their costs and offering products and services at prices which are affordable for all besides providing them necessary knowledge and information to work in poor and developing countries.