High rates of return usually accompany with high market share. So General motor need not go for an alternative strategy.
Explanation:
If the market share rises, the turnover on investment also rises little bit, but the profit margin on sales increasesmore due to high market share.Many business experts recognized that one of the main determinants of business profitability is market share. Under most circumstances, enterprises that have achieved a high share of the markets can get considerably more profit than their smaller-share rivals. There is no doubt that market share and return on investment ( ROI) are strongly related one with another.
High market share enjoys economies of scale which helps to reduce the total cost.Large-share businesses usually have achieved economies of scale in procurement, manufacturing, marketing, and other cost components.Once a business achieves a leadership position by using it's market share, surely it will develop a new field that able much easier for it to retain its lead than for others to catch up.Finally general motor must follow it's existing strategy to fix prices to catch at least 40 percent of the American car market.
Based on this information it can be said that in this scenario the segmentation plan used by Vans relies heavily on age segmentation. This is when the company focuses on certain age groups to target within the population. Which in this scenario the Vans company is targeting strictly individuals between the ages 24 and 39 which are referred to as Generation Y.
There are two shoe stores in a small town. Store a is selling a pair of running shoes for $ 39.50. If it costs Store a $ 40 to order this pair of shoesfrom the factory, then Store A is practicing predatory pricing. This store is most likely selling running shoes below the cost of production to drive the other shoe<span>store out of business or at least to discourage them from selling the same running shoe.</span>
Exporting is the least complex of the types of global operations. This does not require any investment in the host country such as infrastructure, manpower, or facilities.
