- Dixons
- Comet
- Curry
- PC World
Economic changes that affect Richer Sounds
Richer Sounds prefer interest rate as low as possible because:
- The bank charges are cheaper.
- Customers usually have more money to send.
- Customers may be prepared to spend more.
That mean the increase of the interest rate will cause problem for the company. To solve the problem, they have to sell more goods.
Some more external problems that affect Richer Sounds
- Changing prices – if the supplier’s prices increase, Richer Sounds will need to
increase their prices too.
- Changes in exchange rate – Richer Sound buy large amount of stocks from other
countries, so if pound is weak, they will need to pay more.
Environmental constraints
Although the business of Richer Sounds doesn’t cause any air pollution or water pollution, but they still cause problem.
However, they try to be environmental friendly; to be environmental friendly, they do the following:
- They are aware that their customers, colleagues and passers-by could be affected
by noise pollution.
- If a customer wishes to listen to a system, they use their special demonstration
room.
- They give the old Midi systems they receive to charity.
- They try to keep waste to a minimum.
- At their warehouse, they use electric forklift trunks (to prevent pollution).
Chrissie D’s
There are a number of influences that will affect Chrissie D’s business
Business Competitors
Chrissie C’s is a shop which mainly sells children shoes, the reason is the boss of the shop realises that the shop was located in a residential area, and in this kind of area children shoes are more important than adults’. Also in Whalebone lane there is not much shoe shop that sells children shoes, that’s why the only competitor of Chrissie D’s is Linzi, but Linzi doesn’t sell a lot of children shoes; although Linzi mainly sell ladies’ shoes, but it still effect the business of Chrissie D’s
How does Linzi affect Chrissie D’s:
Linzi may bring out more different shoes with cheaper prices. That’s mean if Linzi lower their prices: Chrissie D’s also need to lower their prices to attract customers. To know more about how Chrissie D’s over come its competitor Linzi, I did some research on their customers:
- Chrissie D’s have wider range of children shoes.
-
Their shoes are cheaper than Linzi
- Chrissie D’s have been in Whalebone lane for more than 18 years, so customers trust the shop a lot.
Chrissie D’s is a local company in Essex. Since Chrissie D’s is a small company, and there is no other shops, so only local shoe shops will effect Chrissie D’s business; that’s the reason why Chrissie D’s competitor were stated as local competitors.
Economic conditions
Interest rate from bank can also affect the price of the shoes. If the interest rate is high, people will rather save their money in the bank than spend them, that’s the time when shops were forced to lower the price of their goods; in other words, if the interest rate is low, people will have more cash with them, and they will spend more, so at that time, shops can higher the prices of the goods.
Although interest rate will effect Chrissie D’s business, but it doesn’t effect as much as it effects Richer Sounds; since Chrissie D’s is a small company and shoes are part of peoples’ daily need, once one pair was worn out, they must buy another pair to replace. So Chrissie D’s will always have customers, though they need to have fair prices. To over come problems cause by interest rate, Chrissie D’s will lower or increase their prices.
Environmental constraints
Chrissie D’s is a company that provide services to people (Selling shoes), that’s why it doesn’t cause as much pollution as other primary and secondary sector, but for the goods of the area, Chrissie D’s did the following:
- Advice their customers to take bus rather then drive.
- Ask their consumers not to park at the side of the road, which is not allowed.
- Ask their supplier to post most of the goods rather then deliver them by driver
up to the shop.
- Put a litterbin in front of the shop.
By doing that, it will cause less air pollutions; that will also make the area cleaner.
Other effects
- If the suppliers increase the price of the shoes, Chrissie D’s will need to increase
their prices as well. (That happens every season)
- If their competitors lower their price, Chrissie D’s had to lower their price as well.
