Name : Clarence Chessty anak Kumbong

Matric no : BG19110143
Section : 105

Title: Factors Contributing to the Success of a Business

Before paraphrase:

A critical factor for the success of any business is a product or service that
meets the needs of target consumers. The consideration of whether or not this is
true involves understanding, not only potential customer needs, but also the
availability of alternatives to what you have to offer--your competition. Competition
can be both direct (McDonald's is a direct competitor for Burger King) or indirect
(McDonald's indirect competition could be a sit-down restaurant, a deli or even a
grocery store). Successful businesses develop and deliver products and services
that reflect value for their target audience that is above and beyond anything else
available.

Product and service pricing is an important and often challenging aspect of

business success. A low price is not always the best price. The decision will depend
on how the business wishes to position itself--as a discounter (WalMart, for
example), as a luxury brand (Lexus), or anything in between. In addition to the
impact that pricing has on the product brand, businesses must also consider price
in terms of their desired profit margins. Selling a product at a price that does not
yield sufficient revenue for continued operations is obviously not a good decision.
Conversely, selling a product at a price that is too high may result in fewer sales.

After paraphrased:

A product or service that serves the needs of target customers is a vital

consideration for the performance of any business. If it is real or not means
knowing, not just the future desires of your clients but the availability of choices
for what you must sell when you are in competition. Competition can be both overt
(Burger King specifically competes with McDonald) or indirect competition may be
hotels, delicatessen shops, or even convenience stores). Effective organizations
create and offer-value based goods and services that are beyond and above their
other available target markets.

Pricing goods and services is an important part of market growth, often

daunting. Not all the right price is a cheap price. It would rely on how the company
wants to put itself. For instance, as a discount (WalMart), as a premium brand
(Lexus), or something of them. Besides, the effect of pricing on the product brand,
companies need to take price into account in terms of their requested profit
margins. Obviously, it is not a smart idea to market a commodity at a price where
the production does not deliver adequate profits to market a commodity at a price
that is too high.

Reference:

Leigh Richards. (n.d). Chron: Factors Contributing to the success of a

business. Retrieved from https://smallbusiness.chron.com/role-perception-
consumer-behavior-67136.html