Let’s start by introducing this company, and talk about our dear friend Henry Trouvé who will be mentioned later. So this company, named TM which stands for Todos os Mercados, which is a multinational company meaning that they operate in several companies all over the world. It is also a private limited company. A type of special trading company: which has limitation of the liability of the partners to the amount of their contributions and features of a partnership. It is mostly own by shareholders but mainly allows general public to buy and sell shares in the company via stock exchange, a market place for trading stocks. Shareholders are people that own shares in a company which can be either external or internal. …show more content…
He worked there as a sole trader, which meant that he was self-employed, therefore responsible for his profits and failure. After this experience Henri Trouvé questioned himself about the advantage and disadvantage of being a sole trader he figured out that the advantage was that he was able to control everything but the decision making had to be made him only and he couldn’t rely on others. Unfortunately he failed to attract any external sources of finance. He thought he would be working there forever since he was the owner and manager of the business at the age of 32 when is parent retired. Unfortunately after his company went to liquidation he had no income due to his work alone. After this experience Henri Trouvé questioned himself about the advantage and disadvantage of being a sole trader he figured out that the advantage was that he was able to control everything but the decision making had to be made him only and he couldn’t rely on others. Henri Trouvé found himself in competition with TM: as was stated they are MNC. They are estimated to save between “&$2000 and $5000 a year by shopping at TM. They get consumers goods at a very low price. Another important factor is …show more content…
Demographic trend to increase because of the decline in birth rates or aging of the population. TM also wants to launch in Asia but have not yet evaluated the conditions. As TM grew, economies of scale has increased: due to their supplier they have been able to lower their price even further, they will have a high market share and be the market leader. According to their BCG matrix a tool used to evaluate which marketing strategy to use. There are 4 categories: the stars which have high growth and a high market share. The cash cows which have a low growth but high market share. The dogs which have a low growth and low market share. Last, the problem child which have a high growth but low market share. Now, they were able to offer banking facilities, insurance, pharmacies, opticians and mobile phone services, which could be the result of their BCG matrix. One approach that TM have failed to use is external growth through franchising which consist of the limit to how much a firm can grow internally is the result of: Lack of funds, inadequate knowledge of new markets and