Relatively elastic refers to the degree to which the quantity of a good or service demanded changes in response to a change in its price. When a good or service is relatively elastic, a small change in price results in a relatively large change in the quantity demanded. This means that the demand for the good or service is sensitive to changes in price.
On the other hand, when a good or service is relatively inelastic, a small change in price results in a relatively small change in the quantity demanded. This means that the demand for the good or service is not very sensitive to changes in price.
There are several factors that can influence the elasticity of demand for a good or service. Some of these factors include the availability of substitutes, the importance of the good or service to the consumer, and the percentage of the consumer's budget that the good or service represents.
For example, if a consumer has several substitutes available for a particular good or service, they are more likely to switch to a substitute if the price of the original good or service increases. This means that the demand for the original good or service is relatively elastic. On the other hand, if a consumer has few or no substitutes available, they may be more likely to continue purchasing the original good or service even if the price increases. In this case, the demand for the good or service is relatively inelastic.
Another factor that can influence the elasticity of demand is the importance of the good or service to the consumer. If a good or service is essential to a consumer's daily life, they may be more likely to continue purchasing it even if the price increases. In this case, the demand for the good or service is relatively inelastic. On the other hand, if a good or service is not essential, a consumer may be more willing to switch to a substitute or do without if the price increases. In this case, the demand for the good or service is relatively elastic.
The percentage of the consumer's budget that a good or service represents can also influence its elasticity of demand. If a good or service represents a significant portion of the consumer's budget, they may be more sensitive to changes in price and the demand for the good or service may be relatively elastic. On the other hand, if a good or service represents a small portion of the consumer's budget, the consumer may be less sensitive to changes in price and the demand for the good or service may be relatively inelastic.
In conclusion, relatively elastic refers to the degree to which the quantity of a good or service demanded changes in response to a change in its price. The elasticity of demand can be influenced by the availability of substitutes, the importance of the good or service to the consumer, and the percentage of the consumer's budget that the good or service represents. Understanding the elasticity of demand can be helpful for businesses when setting prices for their products and for policymakers when considering the potential effects of taxes or other price changes on consumer behavior.
Swot Analysis Of Subway
In the chart below, it lists the US female fragrances brand share by value from the 2002 Table base data. Besides, unique sides like freshly baked cookies and potato chips are offered instead of the usual mash potatoes, French fries or coleslaw. Headline Company Names 7. Services are not consistent from store to store 4. And its ratio with corruption and organized crimes. Available online at www.
Metro Subway Market CAGR Status, SWOT Analysis, Share, Trends, Growth, Top Key Players Strategy Analysis Report and Forecast to 2028
Increasing demand for healthier food 2. Our academic experts are ready and waiting to assist with any writing project you may have. FOCUS ON CUSTOMER LOYALTY The purpose of most well-developed customer relations programs is to turn one-time or occasional customers into loyal buyers. Supporting point 1: Nowadays we can see these fast food restaurants in almost every shopping mall and there is at least one of these franchised restaurants in each area of the city and still increasing in number because of the high demand. The Subway restaurants in England do offer a vegetarian option — but it is not available all over the world.
Some of the recently introduced products reflect the healthy offering of the company. The financial results are that a small percentage increase in customer loyalty can translate into a significant rise in profits. Also, manipulating different data and combining with other information available will give a new insight. Subway does not have a vegetarian menu option. The decision that is being taken should be justified and viable for solving the problems. Marketing environment is the collection of all of the surrounding actors and forces that have the power to affect the company 's ability to do its job in having good relationship with target customers and satisfying their needs Kotler, Armstong, Tolba, Habib, 2011.
The market share and the profits of the company that was outstanding to sandwiches greater than before greatly as a result to the reduced interest of the customer towards the chips and hamburgers due to raise consciousness about healthy foods. Subway overtime is a range of additional working hours that increased overtime pay. After introduction, problem statement is defined. Subway is famous for the tastiest and most nutritious meal options. Today, there are more than 15,000 restaurants in 76 different countries. Always obtain expert advice on any specific issue.
Subway Case Study Solution and Analysis of Harvard Case Studies
Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. IT has also been frequently poorly employed at great cost to companies. Opportunities for Subway Many geographical markets are out there to explore. Many of the outlets are very small as well. The new decoration of the companionship is an additional issue that provides a fresh feeling pinnacles the customers. As a result, Subway may lose such potential consumers, where actually there could be opportunities to tap a global Halal food market of about 1.
This may be considered a relatively large portion to consumers whom may have smaller appetites, especially for the tweens and those younger. Vegetarian Foods: Mostly Subway offers different kinds of meats but lacks in a varied menu for vegetarians. Customer service varies from one outlet to another giving customers mixed feelings. The company has partnered with the American Heart Association to add to its image further. Subway restaurants can be found in both urban and rural areas. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. .
Local fast food restaurants can offer healthier food and menu that exactly represents local tastes. Call Attention to the Logo 6. The market share and the profits of the company that were due to sandwiches increased greatly as an effect to the decreased interest of the customer towards the chips and hamburgers due to increase awareness about healthy foods. Also this alteration, there are many number of other issues that impact food economics. Satisfaction and Level of Service: Because of the training of the staff is outsourced to the ones who have franchised does not ensure a common level of service satisfaction around all the Subway stores around the globe.
Subway has a high degree of brand awareness; consumers are able to associate Subway with its submarine sandwiches that are filled with fresh vegetables. Rare and valuable resources grant much competitive advantages to the firm. What are the challenges of Subway? Get a Sample Copy of the report: Market Analysis and Insights: Global Metro Subway Market Due to the COVID-19 pandemic, the global Metro Subway market size is estimated to be worth USD million in 2022 and is forecast to a readjusted size of USD million by 2028 with a CAGR of % during the forecast period 2022-2028. . It should be able to meet the needs of students, families, professionals and other specific customer segments. Subway management makes sure that it goes to different shows and other big events and do some advertisement there so as to attract more customers and market its brand internationally. The colour combination of the logo — red and yellow also acts as a tool in identifying its product.
Its advertising strategies like advertisement in different forms like TV, radio, newspapers etc. After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. Find Out How UKEssays. Subway has been targeting mostly foreigners when it was started in 2003. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it.