Markets with Consumer Switching Costs - Term Paper Example

For example if say in a mobile telephone market there exist many companies competing and customers can switch to other companies with little switching costs then the demand for the product will be most probably elastic.... However, if there is considerable switching costs then the demand will be inelastic.... The other factors affecting the elasticity of demand is the consumer buying habits....

The Globalisation movement - improvements in IT, and telecommunication The emergence of new economies & country development – causing new markets for opportunity.... Improved communication & innovation at the global level (Positive) More efficient manufacturing operations/procedures (positive) Achievement of the economy of scale and scope (Positive) International marketing, fast product delivery to markets (Positive) Ruling: Positive Legal Industry regulations, patent protection and intellectual property laws....

Secondly, to improve and increase consumer confidence and satisfaction level Maybelline has looked at ensuring that they open stores and exclusive outlets which provides specialized services.... … The paper 'Internal Analysis for Maybelline " is a great example of a management case study....

As a result, channel flow costs may increase as a result of target customers being unsure of what to buy.... This increases channel flow costs.... This not only results in increased channel flow costs but overproduction as the company tries to avoid stocking out of the product in demand as well.... To begin with, there must exist the necessary structural infrastructure for the consumer to efficiently utilize the channel in order for it to be acceptable to them....

According to the articles and media report, with the people of Australia increasingly switching their particular drinking habits from the typical beer to craft beer and wine, concerns have been raised with a number of craft beer proprietors increasingly raising their complaints against their mainstream beer owner colleagues over what they term as misuse of the market powers.... Actually, the greatest business achievements in history have actually developed from the company's capability to tap into new markets, new products and even customers....