Comment To Peer Response Dq1 AND dQ2jb - Essay Example

DQ1- I agree with you that forming a partnership with an established company such as Quick Loans is a great way for a mortgage company to establish a profitable business. Collaboration and flexibility are two advantages of partnerships (Referenceforbusiness, 2012). A company like Quicken Loans has an established reputation and brand value that attracts a lot of business without the need of over spending in advertising expenses. I also agree with your statement that barriers of entry can help a company build a competitive advantage.

A barrier of entry limits the amount of companies that can enter a marketplace (Varian, 2003). A branding strategy is build through the passage of times by investing in marketing and public relations initiatives. It takes time to build a brand value. Coca-Cola has tremendous brand value because it has been in existence for over 100 years. Two factors that help develop a brand strategy are effective communications with stakeholder groups and effective use of distribution channels (Williams, 2012).

DQ2 Diversifying is a great strategy to remain competitive during tough economic times. Companies with greater product variety will attract more customers. I agree with you that diversifying can help boost profits. Two types of diversification strategies are related and unrelated diversification (Scribd, 2012). A second strategy that you mentioned in your response was mergers and acquisitions. Mergers and acquisitions help companies increase their market share in an industry. Some of the benefits of mergers and acquisitions include access to new market segments, new innovation opportunities, access to new revenue streams, and maximization of return on investment (Frost).

I also liked your idea of seeking expansion by taking advantage of the internet. Customers are purchasing more goods and services online than in the past. In 2011 the e-commerce sales in the United States reach $188.1 billion (Plunkettresearchonline, 2012). Some of the most successful online businesses are EBay, Amazon, and Facebook. ReferencesFrost.com. Mergers & Acquisitions: Benefits. Retrieved May 4, 2012 from http://www.frost.com/prod/servlet/our-services-page.pag?mode=open&sid=195824349 Referenceforbusiness.com (2012).

Partnership. Retrieved May 4, 2012 from http://www.referenceforbusiness.com/small/Op-Qu/Partnership.html Plunkettresearchonline.com (2012). E-commerce & Internet Business Overview. Retrieved May 4, 2012 from http://www.plunkettresearchonline.com/ResearchCenter/Statistics/display.aspx?Industry=14 Scribd.com (2012). Diversification. Retrieved May 4, 2012 from http://www.scribd.com/doc/12376024/Advantages-and-Disadvantages-of-Diversification Varian, H. (2003). Intermediate Economics (6th ed.). New York: W.W. Norton & Company.

Williams, J. (2012). The Basics of Branding. Retrieved May 4, 2012 from http://www.entrepreneur.com/article/77408