1.) How does the maple syrup industry reflect what we learned in class about cartels?
Describe what makes FPAQs maple syrup so special (i.e., uniquely differentiated)
FPAQs maple syrup is special because there are cartels of maple syrup that set the prices and negotiate with buyers. It is uniquely different because of the different seasons of maple syrup collection. With this, there is a stable market to sell maple syrup.
Reference the definition of cartels and joint-profit maximization
As mentioned in the week 8 powerpoint on slide 39,
Cartel: An organization of firms that agree to coordinate their behavior regarding pricing and output decisions to maximize profits for the organization.
Joint-profit maximization: A strategy that maximizes profits for a cartel but may create incentives for individual members to cheat. …show more content…
For example, breakfast cereals can easily be differentiated through packaging.
What would you do to save Kmart and Sear? Is there anything that can be done? Propose a product or process innovation that would disrupt their hold on the market. Make sure you reference what kind of innovation you are proposing as defined in the notes.
I would save Kmart and Sear by telling them where they went wrong and how they can improve. For example, maybe closing some stores and selling more products online to compete with Amazon. They could replace labor with capital innovation. For example, artificial intelligence could help them save money by replacing human laborers.
How can these stores better understand their consumers? Propose a strategy for understanding consumer behavior as described in the notes.
One strategy that they could use to better understand their consumers is by changing their names to make it more attractive to consumers. They could use surveys to get recommendations of what they could change their names
Describe what makes FPAQs maple syrup so special (i.e., uniquely differentiated)
FPAQs maple syrup is special because there are cartels of maple syrup that set the prices and negotiate with buyers. It is uniquely different because of the different seasons of maple syrup collection. With this, there is a stable market to sell maple syrup.
Reference the definition of cartels and joint-profit maximization
As mentioned in the week 8 powerpoint on slide 39,
Cartel: An organization of firms that agree to coordinate their behavior regarding pricing and output decisions to maximize profits for the organization.
Joint-profit maximization: A strategy that maximizes profits for a cartel but may create incentives for individual members to cheat. …show more content…
For example, breakfast cereals can easily be differentiated through packaging.
What would you do to save Kmart and Sear? Is there anything that can be done? Propose a product or process innovation that would disrupt their hold on the market. Make sure you reference what kind of innovation you are proposing as defined in the notes.
I would save Kmart and Sear by telling them where they went wrong and how they can improve. For example, maybe closing some stores and selling more products online to compete with Amazon. They could replace labor with capital innovation. For example, artificial intelligence could help them save money by replacing human laborers.
How can these stores better understand their consumers? Propose a strategy for understanding consumer behavior as described in the notes.
One strategy that they could use to better understand their consumers is by changing their names to make it more attractive to consumers. They could use surveys to get recommendations of what they could change their names