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forces influence profitability most significantly Greeting Cards

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The forces which influence profitability most significantly in the Greeting Cards Industry is determined.

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P.S : answer is attached in brainmass.doc file

The U.S. greeting cards industry remains a mature and stable market with sales growth of 8.7% between 1999 and 2004. The market in 2004 was valued at $7.5 billion, based on total unit sales of 7 billion greeting cards for the year. Competitors in the industry continue to seek distribution channel expansion, particularly through Internet and wireless medium. Suppliers continue to target emerging consumer groups. With expanded product offerings, the market is positioned to engage consumers. Overall, industry suppliers and retailers work together to maximize the sales of greeting cards. These category-building activities include such efforts as reevaluation of retail space, data sharing and co-branding. Most of the major players attribute their success of profitability to adapting seasonal trends, innovative design, dynamic marketing, personal attention to detail and quality, adapting to customer needs and quick response.

Seasonal Trends

Most of the buyers tend to purchase more cards in times of special occasions (birthdays,
Christmas, valentines day etc) prosperity and economic good news. So adjusting the manufacturing processes for appropriate timing is an important factor on the demand, and profitability. ...

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  • MBA, Texas A&M University-Kingsville
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