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Impact & Strategy - Essay Example
In the period of globalization, a company and industry are influenced by a number of internal and external factors. Tangentially-related industries have an impact on the power tool industry, its sales and profitability. Multidimensional analysis based on statistical results and forecasting factors will help Able Corporation to forecast future sales and plan production facilities.
The nature of industrial markets, like the power tool one, consisting as they do of a small number of large customers or potential customers, makes industrial market surveys much simpler and less expensive than similar surveys of potential markets for nationally distributed consumer staples. Because judgment plays such an important role in forecasting, there is an obvious advantage in checking one's own estimate against the estimates of other forecasters (Makridakis, 1998).
Another industry is a home repairs and improvement industry. In this sphere, it is difficult to forecast customer demand in sufficient detail and with sufficient accuracy for the purposes of planning more than a few months in advance. A special attention should be given to new building materials and repair-improvement processes which create a demand for new products and innovative solutions (Schwolsky, 2004).
Raw materials and suppliers relations also affect the power tool industry and influence product cost and price level. Changes in steel industry and chemical industry affect price level and can influence production facilities of the power tool industry. ...