Market Structures: A Memo Point Term Paper

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Point C:

Based on personal experience, one additional strategy and variation on the other given strategies is to examine the growth in Real GDP. When the GDP increases, a firm is likely to have enough extra capacity to increase production and sales and launch new products. Or, it can control its production and bide its time when the economy is in a recession.

In this case, during a period of overall economic expansion in the home country, a new advertising campaign that launches a new product that brands the product with a new image against the competitors, combined with a tie-in to the older product line, is one way to create a lasting inroad into the existing domestic market.

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Exploring possible international opportunities during a domestic recession, where inventory can be exported rather than sold domestically at a lesser price (tainting the image and driving prices down) is another key part to the new strategy that ought to be explored in the near future......

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