Distribution analysts indicate that costs for supermarkets equal about 98 percent of sales. What influence does this high break-even level have on supermarketsâ€™ diversification into delis, cheese shops, seafood shops, and flowers?
Answer to relevant QuestionsWhy do some large, financially strong manufacturers choose not to own their dealers but instead establish contractual relationships with them? Why might a manufacturer choose to enter a conventional channel of distribution? Study the information available from Starbucksâ€™ website (www.Starbucks.com). Discuss how the website enhances the firmâ€™s ability to obtain premium prices. In some industries prices are set low, subsidies are provided, and other price-reducing mechanisms are used to establish a long-term relationship with the buyer. Utilities, for example, sometimes use incentives to encourage ...Compare and contrast the role of promotion in an international public accounting firm with promotion by American Airlines.
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