What steps might Matthews and Avelino take to create demand for their books? How must a small business like Secret Acres balance supply with demand?
In order for Matthews and Avelino to help create a demand for their books, one must get into the mindset that demand is driven by price; therefore they may want to decrease or try to keep the price of their books lower than that of their competitors in order to increase the demand of their books and/or services. In order to decrease or keep their prices competitively low, they must think about their supplies. In supplying, the more books that they print, the lower the price they can get. However, since Secret Acres is a small business with very limited ability, they can only create the demand with lowering price in a very limited scale.
They can however, create a demand for their books in a new way, by connecting their books to certain types of Web sites such as Amazon.com or Ebay.com, in order to help increase the popularity and/or demand for their books, or to help influence customer preferences in order to create a new demand. A small and upcoming business like Secret Acres must carefully balance their supply with demand. The financial and selling ability of any small business is very limited as they are starting up. Any wrong decisions might be a deadly strike to it. Therefore, by Secret Acres balancing their supply with demand to proximally approach the equilibrium price is the key for this small business to be able to survive and be competitive in the market.
How might Secret Acres make the most of an economy that is recovering slowly? What advantages and disadvantages might the firm have over a large publishing company?
Small business such as Secret Acres with limited resources must often have to struggle to enter new competitive markets which also may include the possibility of dealing with international competition as well. However, I think that the advantages for a small business like Secret Acres over a large publishing company seem to outweigh the disadvantages slightly to include such as the following,
The ability to have more personal relationships with its customers and employees
Simplified Record Keeping
Ability to adapt to change
Enjoying the advantages of sole proprietorship (Being your own boss, being able to keep all the profits, the ease and low cost of going into business or maybe out of business, the ability to keep some business information secret), if you are the sole owner of a small business, you really don’t have to report to anyone as you would in a big business.
Risk of Failure
Limited potential and
The limited ability to raise capital
How would you categorize the competition that Secret Acres faces? I would categorize Secret Acres as an monopolistic competition because of the simple fact that even though Secret Acres has many competitors, each business either offers slightly different product, or some uniqueness to its business, however, all business are competing for the same consumers in the end.
Do you think Secret Acres should pursue online distribution through e-readers and other delivery systems? Why or Why not? I absolutely do think that Secret Acres should pursue online distribution through e-readers and other avenues via the internet or World Wide Web. In today’s economy and market, businesses whether it is new and starting up or one that has already been established for some time are always facing changes and challenges when it comes to surviving in today’s business times. One of the most common economic challenges that any business in the 21st century would face would be the constant emergence of new technology like the iPad, iPhone (or any smartphone) and e-book (kindle or nook).
A business needs to have the ability to adapt to the constant changes in today’s technology and be able to find a way to survive as a business. Traditional publishing businesses are slowly and gradually being taken over by electronic reading as the way people now are reading (weather it is the newspaper, textbooks, or a good novel). The development of online shopping to various websites such as Amazon, Barnes & Noble, E-bay has or is becoming the main way of shopping, creating a new online market area, thereby, these changes have created the new kinds of demand for product with a great potential.
As a business, Secret Acres needs to motivate to grab and utilize this opportunity in order to expand their profit capability and potential. If Secret Acres does not adjust to the new challenges that are among them and continuously create the demand of their books in various ways, then I don’t think they will be able to survive as a business in this continuously rapidly changing market.