With <u>predatory pricing</u>, a company deliberately sets a low price with the express idea of driving its competition out of business.
Predatory pricing is a pricing strategy, the usage of the method of undercutting on a bigger scale, wherein a dominant firm in an enterprise will intentionally reduce the fees of a service or product to loss-making stages within a short-time period.
Predatory pricing is the lowering of charges by a corporation specifically to put rival companies out of business. with the aid of doing away with the opposition, the enterprise edges closer to turning into a monopoly, a privileged position of marketplace dominance that might allow it to fix prices and stay away from the natural laws of supply and demand.
In a short time period, predatory pricing creates a buyer's marketplace, in which customers are able to “shop around” and generally attain goods at a decreased price. For agencies, profitability declines as competitors actively try and undercut every other's costs and divert visitors to their personal business.
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Answer:
d. $2(1.10)/[0.15-0.10]
Explanation:
The formula to compute the today value of the stock by using the Gordon model is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2 + $2 × 10%
= $2 + 0.2
= $2.2
And, the required rate of return is 15%
Plus the growth rate of return is 10%
So, the today value of the stock is
= $2.2 ÷ (15% - 10%
= $44
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000
Total asset turnover is calculated by divided net sales by the average total assets.
Total asset turnover = net sales / average total assets
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3
The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue.
Answer:
Hard to change ; No digital skills among staff
Explanation:
Traditional ad / marketing agencies are the agencies promoting brands through offline ways. Eg : Banners, Pamphlets etc
Digital Marketing agencies are agencies promoting through online ways. Eg : E mail marketing, Social media marketing etc.
Digital Marketing needs more technical expertise than traditional, conventional marketing. So, traditional marketers & their staff face adaptability issues in adapting to the new technically upgraded marketing approaches. Such because their team & staff members have low techno - digital skills, are accustomed to conventional marketing practices.
The only initial investment is the hard goods. business basics can be learned along the way as well but the first one is most beneficial.
