Creating an Interrelationship between Firms – Assignment Example
The paper "Creating an Interrelationship between Firms" is a wonderful example of an assignment on business.
In the business environment, firms, companies, and industries work together in meeting the competing demands in the market and overcoming various obstacles. In this perspective, creating an interrelationship between firms is imperative, as it is both a marketing and competitive strategy that allows firms to have a comparative advantage over their rivals. Calaginoe appreciated this strategy by making wooden holders with fliers and coupons with the company logo (Spriegel 78). This ideology serves to raise the awareness of the company operation even in winters while other firms have closed their operations. These marketing and competitive strategies are still applicable in today’s business environment. Most companies mimic the ideology of enhancing a harmonious and cooperative relationship with other businesses. In today’s business arena, a company can make the utensil, working attires especially for technical firms, fliers among other displaying items with the company’s logo and other important information about the company. This intelligent and unique advertising campaign ensures that the business reaches as many customers as possible. Working in collaboration with other firms also helps in creating consumer’s loyalty on its brands and products.
Gaining profits in the business world is not all there is. In fact, even with the best product and best business practice and ethics, a solid business relationship between companies and customers is very essential to the success of the business. Having an interpersonal relationship among companies in operation has a gigantic effect on the success or failure of the business in general. Understanding other businesses lead to collaboration and minimizing conflicts and increase business ventures (Spriegel 120). A harmonious relationship among businesses helps in improving the operation of the company and increases its annual sales since they (other companies) can become customers.
In the times of crisis, businesses can profit from each other by exchanging the best ideologies to counteract investment giants facing them. This result in the formulation of the best approaches to overcome mutual issues and problems they face in the business environment where they operate. In this perspective, those firms working in isolation employ much capital in solving its problems while the collaborating firms cost-shares the expense of clearing mutual problems. Collaboration with other businesses enables the business to save money and/or increase sales or profits. They engage in mutual beneficial advertising, promotions, and campaigns, which is very imperative in sustaining the growth of the business. Businesses in partnership capitalize on a logical link between partners and help in gaining some operational advantage.
Writing a book, especially by the founder of a business is a marketing tool that helps in increasing the awareness of the business existence and products offered by a business. It is a form of publishing and celebrating the milestone and the important achievements of the business, thereby increasing the business’s visibility and credibility. In addition, it is a great way of setting the business and the founder apart from the competitors in a world where so many people have a similar level of certification, education and years of experience. It is a valuable marketing tool, which attracts and generates new leads for a business. It enhances personal credibility and, therefore, customers think that the founder is smarter and more expert than competitors.
The aspect of Dogfish Head Brewery is featured in the Documentary (Beer master) and Discovery Channel series (Beer war) has developed opposing sentiments on the sustainability and profitability of the company. This marketing tool has the advantage over the operation of the business since it reduces its cost structure, it utilizes in advertising and promotion campaigns. It communicates significant information about the business to consumers and helps in building and clearing wrong perceptions about the business as well as its products (Spriegel 92). However, although by providing information to publicly enable the business to increase its sales volume, it helps its competitors to strengthen their competitive moves. It, therefore, results in exposing a company’s weaknesses and threats from which competitors take advantage to win a competitive advantage in the market. On the other hand, the documentary provides both positive and pessimistic aspects of the business and, therefore, it may have lingering effects on consumers.
Chipotle Restaurant utilizes four key strategies that enable in growing the business. Backward integration is one of the most important growth strategies (Paiz 189). Although the business has not physically acquired any of its suppliers, it is forming a collaboration with several farmers that grow sustainable food sources. Under the marketing penetration, growth strategy, the company is pursuing new marketing efforts in order to implement and grow its vision of Food with Integrity. The company is aggressive in its mainstream marketing efforts and, therefore, they hire competent personnel in the marketing department to propel its marketing strategies.
Marketing development is another growth strategy adopted by the company. Recently, the company has begun to introduce restaurants in other places other than the U.S. including Canada and England. In the United States, Chipotle is establishing its operations (restaurants) in areas that offer less potential for revenues (Paiz 48). These stores are viable options for growth since the cost involved with a start-up is lower than that of a regular store. Product-related diversification enables the company to reach different consumers in the market. Currently, the company is launching a new concept dealing with Asian food, which is expected to unquestionably enjoy success strictly grounded upon the Chipotle name.