Imagine you are part of a strategic planning group at a large corporation that is considering
developing a new proposed product. The marketing director has asked your team to do a competitive market analysis to determine the product's potential success. The analysis will focus on your primary competitor in the product's market. Select a potential competitive organization and a product in that organization. ( I choose ADIDAS)
1. Factors that affect fixed costs?
2. Make recommendations on how your organization can maximize their profit-making potential and successfully compete in the new market. Consider the effect your recommendations may have on marginal revenues and costs.
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1. The factors that affect fixed costs. Adidas is a German multinational company that designs and makes sports shoes, clothing, and accessories. The factors that affect fixed costs is the number of salaried people employed, the insurance premiums required, the rent the company has to pay, monthly payments on loans and equipment leases, advertising, and the extent to which services/manufacturing can be outsourced (2).
2. The organization is Adidas. It can maximize its profit making potential by increasing its outsourcing and opening ...
The answer to this problem explains fixed costs of Adidas, and how profits can be maximized. The references related to the answer are also included.