Question

Question 8.3. H&H is a small company where you are working as a manager. H&H holds a leading position in an embryonic market. With the lowest cost structure, your company has a sixty per cent share of the market. Further, H&H has the most reliable and highest-valued products. Due to these reasons, your boss believes that the company’s future is ensured. You are required to write a memo to your boss outlining why the assumptions posed might be incorrect. (use own words)

Answer 1

In a bussiness environment future is never endured because of complexity of business environment

Our company owned 60% market share with lowest cost but threats may be as follows

1)new entrants may come with new technological advancements so that they can provide better quality and cost

2)threats from substitute products. As substitute products may offer better quality in service requried they pose a significant threat by reducing market size

3)legal and political environment is always uncertain

Due to above reasons our future may not be ensured and we need to be cautious with changes in environment