General Environment Essay

624 Words 3 Pages
Common Test 1 a) Discuss one (1) relevant general environment segment that has a negative impact on the sales of printed magazines.

One relevant general environmental segment that has a negative impact on the sales of printed magazines is technological. In technological segment includes product innovations, new communication techniques and application of knowledge. As in the above case, the technological will give negative impact to the sales of printed magazines because nowadays, as the technological expands, they are many technological changes. With the technological factor, people now can get the news, information just one click. Therefore, the people choose to use the technological to read the gossips or others rather than buy
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The customer can choose either to buy magazines or to read online. Nowadays many phone or tablet can connect to internet easily.

c) Do you think the Resource-Based Model would still be able to help the Chief Editor in formulating strategies to achieve above-average returns? Support your answer with one (1) reason.

The Resource-Based Model in gaining above average returns assumes that each company owns a collection of unique resources and capabilities that provides the basis for its strategy. These resources are the primary sources of the company's high profitability. As for me, I think the resources based model cannot help the chief editor in formulating strategies to achieve above-average returns because as we know the remajakini is not unique, not rare, not costly to imitate and not substitute anymore. Therefore, there is no way the resources can help to achieve above average returns.

(d) Discuss the bargaining power of suppliers when the publisher of the printed magazines joined the 'e-media bandwagon'

The bargaining power of supplier is the ability to influence the price given. Supplier power can impact the price the target market will pay for goods, the quantity and quality of items available for purchase, and even which companies will be able to remain in the marketplace. If the publisher joined the e-media banwagon, the supplier increases and it will lead customer can choose whos supplier they want.

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