business environment jewellery, organic food and tesco - Essay Example

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business environment jewellery, organic food and tesco

The Supply factor out paces the demand of jewellery leading to reduction of prices, minimizing the ultimate corporate profit by a small percentage and increase in job cuts as a measure of sustainability.
Traditional small jewellery and watch operators suffer a major setback in business because of the increasing competition from luxury goods and high fashion conglomerates. There are many instances where the traditional jewellery has lost its importance and the demand for the same is fading because of the evolution of new type of fashion jewellery.
The traditional firms are a way behind in reforming their practices and are slightly reluctant to change any dimension of their jewellery setup. Whereas the conglomerates are ready to spend fortune on effective advertisement and branding techniques and deploy promotional strategies to attract customers and achieve brand loyalty paving way for effective customer retention.
After the great depression, there has been a shift in consumer buying behaviour, their choice and preferences leading to more modified buying motives. With the effective marketing initiatives, the customer target base is attracted towards designs which are fashionable and simple for official purpose. ...Show more

Summary

Supply and Demand Diagram shows the Supply Line where there is a cyclic trend towards increase in the supply and the demand line projecting towards a downward slope and the intersecting Equilibrium Point is the balance between supply and demand and this can be attained only when there is uniformity in supply process and adequate consumer demand to purchase the entire supply…
Author : lenna35
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