On the other hand, when there is high capital resource then more investments could be made to set up the best production procedures and service provision systems, to enable them offer nothing but the best products to the consumer hence helping them build a strong customer base.
It is however also important to notice that, the existence of these things such as capital and human resource which is seen as the basis of success and growth of a firm by many people would be useless when there are no consumers to consume the products or services been produced. In other words, it is the existence of consumers which determines whether or not the large human and capital resources possessed by a firm is needed or not.
When firms are able to build a strong and established customer base, these customers help these firms to produce new and innovative products and services as a result of been able to identify some other needs of their customers and capitalizing on the trust built in them by their customers as a result of the long lasting relationship between the firm and its customers. Apart from these established customers leading or helping a firm to produce more innovative products, they can also help in improving already existing ones.
From the article, you would realize that Hercules b...
This lead to the production of new companies such as the turpentine and pine oil and these products immediately after been introduced into the market had ready consumers for them since its production was motivated by the needs of some customers. This is because it is evident that in the supply of explosives by Hercules to their military customers was done very diligently to the satisfaction of its military customers hence establishing trust and good business transacting relationship between the firm Hercules business and its military customers. This type of relationship between a service provider and a consumer is something which is achieved a long term and is something which needs to be constantly and consciously worked at through the provision of good, quality and first class services. These things all lead to a customers satisfaction and when a customer is satisfied with the goods and service he/she is been provided with you the service provider succeeds in winning the trust of your customer. Winning your customers trust leads bounding him/her to buying your products rather than that of your competitors. Another important relationship the Hercules business had was that with the lacquer industry as a result of the production of soluble nitro cellulose for this industry which also lead to the discovery and production of other new products from the same raw material. These new products were also produced as a result of the Hercules business identifying some other needs of their established customers in the lacquer industry. One advantage which is quite obvious the Hercules business had from the divestiture into the production of these new products for the lacquer industry is it was less capital intensive since they chose to produce new products from