Profit

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Profit

AdvantagesGetting StartedGetting Started

  • SAS ltd is launching a new business which is going to be of high quality with possibly a unique selling point.
  • The market has a local competition, increasing the demand may mean higher prices, but high quality product may not put off customers.
  • Business startup plan is new so may face considerable startup costs ( especially physical resources), higher prices and revenues may help to offset these and make sure SAS ltd don't suffer from cash flow problems.

Disadvantages

  • SAS ltd faces a lot of competition from established rivals in helicopter industry, and customers may choose to stay with the company they already know.
  • Although Sheena's father has many business contacts , she hasn't got the same degree of contacts as her competitors are based on the same aerodrome she wants to be based on.

Evaluation

SAS ltd will depend on the market research that she has conducted about price. If customers would rather have high quality products and pay a little bit more then charging higher prices would be a benefit. It may also depend on how rivals react , if they cut prices to try and undercut SAS ltd. 

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