Larson's_Inc

Understanding how business cycles affect the economic growth can be as vital to Larson’s success as the product itself. The market can determine the right and wrong moves for the organization to take and it can completely change based on the current business cycle. Ironically enough the economy “turnaround” allows Larson to start producing their own battery’s and bundle the product together with another company. The organizations enhancement of the battery’s manufactured in American and Germany will make it difficult for other competitors to enter the market. “Going Green” will allow Larson to have pricing power to raise prices without losing customers and topple the competition in the market. Larson should now invest more money in advertising there bundled product to consumers. Intense advertisement will make the competition spend heavily on advertising in order to get up with Larson. The heavy spending for the competitor will make it difficult for the competition to afford. The market power theory of adversity will create an apparent difference in Larson’s brand from the competitions brand to a degree in whichthe customer will see Larson’s brand different from the competitor’s brand. As Larson grows the company will gain bargaining power with its suppliers. However, if Larson can double the amount of product being purchased every month, the organization will be able to negotiate better prices. The market for the “green battery” products may be influenced by factors that inhibit new competitors into the market. References Davis, S. (2009). U.S. Demand for Batteries To Reach $16.8 Billion in 2012. Power Electronics Technology. Retrieved from http://powerelectronics.com/portable_power_management/news/us-battery-demand-projection-0225/ Freedonia Group. (2008). Buyer Report. Retrieved from http://www.reportbuyer.com/computing_electronics/batteries/world_batteries.html McConnell, C. R., Bruce, S. L., & Flynn, S. M. (2009). Economics: Principles, problems and policies (18th ed.). New York, NY: McGraw Hill/Irwin University of Phoenix. (2008). Larson, Inc. Scenario [Computer Software]. Retrieved from University of Phoenix, Simulation, ECO/561 website.