ON TIME BUSINESS MANAGEMENT A+ WORK, ON TIME, NO PLAGARIZING; ON TIME

ECONO6 DISCUSSION (No more than 250 words}

In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?

References

Félix, E. G. S., Nunes, J. C., & Pires, C. P. (2023). The impact of concentration among venture capitalists: revisiting the determinants of venture capital.  Venture Capital,  25(4), 457–486. https://doi-org.ezproxy1.apus.edu/10.1080/13691066.2022.2147876

Respond to ECONO6 Mark M (No more than 150 words),

When considering which market structure offers the highest possible return for a new venture-backed company, I believe monopolistic competition provides one of the best opportunities, especially for startups that can strongly differentiate themselves. A true monopoly may seem like the highest-profit option, but it is usually very difficult for a startup to achieve and may attract regulation or strong competitive responses. In contrast, monopolistic competition allows a new company to enter a market with many competitors but still stand out through innovation, branding, technology, customer experience, or unique product design. Venture capitalists are often looking for companies that can grow quickly, scale efficiently, and eventually earn high profit margins. In monopolistic competition, a startup can create value by solving a customer problem in a better or more convenient way than existing companies. For example, a new app, health technology company, or software platform may not be the only firm in its industry, but it can still gain pricing power if customers view its product as different or superior. This ability to differentiate is important because firms in monopolistic competition are not pure price takers. They have some control overpricing when customers believe the product offers unique value (OpenStax, 2022).

Oligopoly can also offer strong potential returns, but it may be harder for a new company to enter. Oligopolies usually involve a few large firms with strong market power, established brands, and high barriers to entry. However, a startup may still succeed in an oligopoly if it focuses on an underserved niche, partners with a larger company, or introduces a disruptive technology. This can be attractive to venture capitalists because breaking into a high-value market can lead to major returns. At the same time, the risk is high because existing firms may respond aggressively through price cuts, acquisitions, or rapid innovation. I believe monopolistic competition offers the best balance of high possible return and realistic market entry for many startups. It gives new firms room to compete, differentiate, and build customer loyalty without immediately facing the same barriers found in a mature oligopoly. However, the highest returns depend on more than the market structure alone. Venture capitalists must also consider barriers to entry, demand elasticity, scalability, profit margins, and whether the startup can sustain a competitive advantage over time.

Respond to ECONO6 Lexi (No more than 150 words),

I believe that any new company entering any market should weigh the pros and cons of entering that market. Each market structure is different and has its advantages and disadvantages depending on the type of business. I think a new company whose goal is to have high returns should enter an oligopoly or monopolistic competition market.

An oligopoly market has only a few competitors in the business, which eliminates the threat of price wars that could happen in other markets. This allows a new company to set its price and determine the best way to sway its consumers. Also, since there is more stability in the prices and non-price competition, new companies can thrive from exemplifying niches and focusing on a superior service. Finally, an oligopoly market can create stronger supplier networks and relationships. So, with a new business, it can position itself as a valuable partner to the supplier, which will indirectly compete with the other large companies, rather than competing with them head on. These benefits of this market can help a new business bring in high revenue when it joins and allow it to continue to be successful.

Another smart market for a new business to enter is the monopolistic competition market. This market provides an opportunity to easily enter the market and create a unique niche in the product. A new business can offer a similar product with a slight difference and sway consumers to choose their product from branding, creating specialized features, and providing products based on local or demographic preferences. This can build customer loyalty with the business and its product. This can help them earn the highest return for their product from innovation.

However, there are always associated with new businesses entering a market. Some of these risks include the financial risks and market threats. Starting up a company, even with some funds provided by other companies, can be more expensive than originally thought. These startup costs can be underestimated and there could be high initial capital required to establish their operation. Another risk is the market threats from customers already having brand loyalty with other companies in the market and not fully understanding the local audience. Some customers will not change what they buy solely due to brand loyalty. This can be exceptionally difficult to overcome without having an extremely value product. Another consideration is it is essential for a new business to understand the market culture and what consumers preference. Missing the mark without fully understanding the culture and local audience might be detrimental to a new business in the market. These are some considerations that are essential to analyze for a new business to be successful in the market.

Week 7 MGKT6 DISCUSSION (No more than 250 words}

Real World example

Your best friend owns a small children's clothing store located in the downtown area of a community of 50,000 citizens. The business has been slow the past year due to the construction of several new strip malls and a new Walmart store (Increased competition). She discovered you were taking an online marketing class and asked for your advice for ideas to increase her sales (She owns her present building and will not relocate her business, even though the downtown area is losing stores to the new strip malls). What would you tell her based on what you have learned in this course?

Research 

Research small business marketing and low-cost promotional strategies

Discuss

· What advice would you offer your friend?

· What low-cost strategies could she employ to help stay competitive?

· Share your ideas on how small businesses can compete when larger businesses come to town.

References

Xianghua Lu, Sulin Ba, Lihua Huang, & Yue Feng. (2013). Promotional Marketing or Word-of-Mouth? Evidence from Online Restaurant Reviews.  Information Systems Research (INFORMS),  24(3), 596–612. https://doi-org.ezproxy1.apus.edu/10.1287/isre.1120.0454

Wk 7 Discussion MKGT6

As we close in on the last two weeks of this class, it's time to start thinking about upcoming courses. In this discussion board, please share what class or classes you are taking next session. 

This discussion board is a great opportunity to connect with your current classmates, perhaps find a colleague in your upcoming class, and get excited about what's next as you move closer to your academic goals.

Next course BUSN623 Legal & Ethical Issues in Management 3 Semester Hours

This course examines major legal and ethical issues confronting business operations and management in a changing, fast-paced global environment. It explores the intersection of law and ethics, equipping students with the skills to evaluate and integrate legal risk and ethical practices for effective decision-making. Using a case study approach, major topics include business structure and liability, intellectual property, contracts, torts, ethical theories, Constitutional law, regulatory compliance, corporate social responsibility, and emerging contemporary issues.