Question

1. You have been assigned to work with a small company that manufactures a popular product. However, a competitor begins selling a very similar product which incorporates state of the art technology. What would you advise your client to do?
2. You're consulting with a large pharmacy with stores in multiple states. This company has improved sales but experienced a decrease in revenue. As a result, it is contemplating store closings. Explain how you'd advise this client?
3. The firm has assigned you to consult a company intending to drop a product or expand into new markets in order to increase revenue. What steps would you take to help this company achieve its objective?

Answer 1

Industry: Pharmacy

Company Product: Pharmaceutical products

Business Orientation: Medical Stores

Situation:

This company has improved sales but experienced a decrease in revenue due to its competitor. As a result, it is contemplating store closings.

The course of action to be fulfilled:

Increase in revenue: Dropping product

or

Increase in revenue: Expanding market

Suggestion and steps:

With increasing population and business cluster the competition is expected to increase, fortunately, thereby a company should always try to expand its business with respect products, operations and distribution to minimize the loss.

Considering 1^st Course of action: Dropping Product – which is not selling up to expected level will diminish the product line and ultimately due to heavy completion in the market, a situation would occur when all the product had to be dropped and every medical store of the company to be closed ultimately the company lose its business. So, this is not a good options

Considering the 2^nd Course of action: Expanding the market – if the product is not having considerable demand in the particular market doesn’t guarantee that it will not have considerable demand in another market. Further, expanding the market will provide a better brand image. So, this will help in attaining the required amount of sales. Also, while expanding the market, one may have a better chance to produce and distribute product according to the market demand and focus on production efficiency too. Thereby, this is a better operation.

Overall suggestion:

The Company has to increase the product line as well as expand its market to increase sales, revenue and brand image.