Since customer’s time is the most precious parameter, it has also been decreased drastically in alternative 3. Each car has to wait for only 2.52 minutes in alternative 3. In addition to that, there is only a 22.86% chance that an arriving car will have to wait for the service whereas in alternative 2 there is 50% chance and in alternative 1 the number increases to 80% which is absolutely inefficient.
If the company pursues the strategy of seeking the initial foundation of the venture and then have a major (almost immediate) expansion of the fledging company, the net payoff of this strategy will be £90,000.
If the company pursues the strategy of seeking the initial foundation and doing nothing in the first year and makes an expansion in the second year if the tourist attraction is built then it will result in a net payoff of £65,000.
If the number of competitors is 1 then the total number of market players will be 2 since my own company will also be operating in the market. The sales volume figure can be calculated by multiplying the total number of market players with the estimated sales. Here the assumption is that the sales of all the competitors will be equal to our sales
Looking at the graph, it is reasonable to infer that the sales volume will increase at a decreasing rate as the number of competitors increase because the industry sales will exhaust at some point of