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If Carphone Warehouse was considering opening a new store, they would have to take into account many factors of location

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Introduction

External Influences Competition All businesses including Carphone Warehouse face some kind of competition from others as they try to win and retain customers. (Based on Motorola L6 on pay as you go) Name of Company- Carphone Warehouse Price- �69.99- �119.99 Special Offers- Reduced prices on a lot of items Goods/services- Mobile Phones, accessories, house phones, mp3/iPod and gaming Unique selling points- Well known, trusted company, sponsors of Big Brother. Other- Name of Competitor- Phones4U Price- �69.95 Special Offers- Refurbished Phone Deals Goods/Services- Mobile Phones/ accessories and House Phones Unique selling points- Well known advertisements. Other- Name of competitor- The Link Price- �79.99 - �99.99 Special Offers- lowered prices Goods/Services- Mobile Phones, accessories, house phones, mp3/iPod and portable games Unique selling points- Celebrity endorsed advertisements (Based on Motorola V3 on pay as you go) Name Of Company- Carphone Warehouse Price- �119.99- �149.99 Special Offers- Free Delivery Goods/services- Mobile Phones, accessories, house phones, mp3/iPod and gaming Unique selling points- Well known, trusted company Other- Name of Competitor- Phones4U Price- �119.99 Special Offers- N/A Goods/Services- Mobile Phones/ accessories and House Phones Unique selling points- Other- Name of competitor- The Link Price- �99.99- �129.99 Special Offers- web exclusive prices Goods/Services- Mobile Phones, accessories, house phones, mp3/iPod and portable games Unique selling points- Well Known company Carphone Warehouse competes with its main competitors through ...read more.

Middle

If interest rates are low customers would have more money to spend. If interest rates go down customers of Carphone Warehouse would not have to spend as much on their mortgage giving them a lot more money to spend on new mobile phones, meaning Carphone Warehouse would get more money from their customers. If interest rates go up customers would be spending more on their mortgage meaning that they cannot afford one of the latest mobiles, meaning that Carphone Warehouse would not get so much money, therefore Carphone Warehouse would prefer for interest rates to be lower. Exchange Rates Carphone Warehouse definitely buys some of their goods from abroad; mobile phones are usually made in the Far East in countries such as China or Taiwan, some of the items Carphone Warehouse may import from other countries would be the Sony PSP, Mobile Phones, MP3 Players and Apple iPods. If the exchange rate is low this means that Carphone Warehouse will have to spend less money on the same products meaning they can then sell these products on for less money, so more customers can afford this showing that Carphone Warehouse prefers exchange rates to be low. If exchange rates are high Carphone Warehouse has to pay a lot more for the exact same thing, meaning they would have to raise ...read more.

Conclusion

In addition to reducing environmental impact CPW hope to carry on raising substantial funds for a new partner charity as well as continuing providing finance for smaller charities and projects that directly affect the lives of the employees at Carphone Warehouse stores across the globe. The Waste Electrical and Electronic Equipment Directive ('WEEE Directive') came into force on 13 August 2004 and since then CPW has been required to comply with the obligations imposed on them by the WEEE Directive. The location of Carphone Warehouse is an advantage in dealing with these external influences, as they locate in places where they are sure to increase their profit margin by a maximum amount. I think that Carphone Warehouse has responded very well to its competitors, its economic conditions and the environmental constraints put upon the business as the cost of shares has almost doubled in the last year, which means that Carphone Warehouse must be an extremely successful business, therefore they must make a large profit, this means that even with the strain of competition, economic conditions and environmental constraints CPW has managed to come out as a successful business achieving a high profit. This is definitely because of where each Carphone Warehouse is located, as the owners of CPW have decided to locate their stores in the perfect places across the globe; this is shown by the cost per share in Carphone Warehouse. Andrew Adkins Page 1 05/05/2007 ...read more.

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