Type of paper: Essay

Topic: Organization, Business, Market, Peer, Material, Products, Taxes, Ebay

Pages: 4

Words: 1100

Published: 2020/10/30


In any industry segment, the economic or fiscal objectives are to increase income, tabulate the variable and fixed expenses for the enterprise and to determine the am manner by which to optimize profits. The requisite for reaching the objective are the minimization of expenses, product differentiation and the establishment of a pricing structure. The business proposal will detail the approaches that are required in order to attain these objective and to cause the organization to become a successful economically sound, organization.

Business Proposal

An accurate forecast that could be made by the associates in the potential business is that everything in the society will shortly migrate to a digital format. The digitally recorded announcements, peer reviewed articles and books will soon be available exclusively on digital media. The increase of the use of digital media has been intensive over the past decade. This is the causal attribute for the perception of a market of digitalizing peer reviewed literature that would be marketed primarily among members of the academic community.
The literature could be retrieved and would have the capacity of providing lectures in a synthetic sounding digital voice. The competitors would be the larger players that include Amazon. There is also a primary competitor that has been prevalent whose name is Infinity CD. Infinity CD has the capacity of proving peer reviewed material that could be downloaded in the form of a lecture. This characteristic causes Infinity Cd to be in a position of monopolistic competition. This monopolistic competition has the qualities of comparatively large amounts of vendors who are developing products that are differentiated (McConnell et al., 2009). Presently our organization is in its infancy and is called Digital Lectures on CD. Our organization wo0uld be likely to categorize where the correct selling price for our product can be encountered.

Presently, Digital Lectures has a price of ten dollars per unit for older peer reviewed titles of digital lectures. These are for peer reviewed works that have copyrights that have expired. In addition, our organization has been marketing 200% more of the new peer reviewed literature that has been placed on CD lecture formats than the old lectures. One approach is to decrease the price of the older peer reviewed material to $8 per unit. This is considering the absence of royalty fees. In addition, we would raise the price of the digital peer reviewed lectures that are in higher demand with the market. In the event that our organization were able to market the older titles with the novel pricing scheme, the comprehensive income (TR = PxQ) would be approximately $8,000.
In case our organization were able to market 2,000 units of the new peer reviewed digital lecture material would attain a level of $32,000 (McConnell et al., 2009) . Considering the modification in prices, the organization could anticipate marketing more of the older peer reviewed digital material at the lower expense which would have the outcome of enhancing the revenue over time. Our organization could also realize very little modification in the sales of the recently published peer reviewed material that was adapted to lectures on CD with a minimal $ 1 price raise, this would be reviewing the demand. In reviewing the consumers’ reaction to modifications in price which is designated as price elasticity, out organization would have the quality of being able to perceive the manner by which the consumer are reacting to the modification in prices and amend our strategy in accordance ( McConnell et al., 2009).
One of the potential markets that could be optimized by our organization is the online market. Our organization is in the process of constructing a website that has the characteristic of being cost avoidant. The complete potential for our product has not been attained. An online marketplace with a franchisee such as eBay is under consideration. The starting eBay marketplace has a cost of $15.95 monthly and there is a percentage that is paid based on the amount of monthly sales volume realized. The application of technological innovations in order to market our products and services is the most practical and can be achieved at a comparatively low expenses (eBay , 2013). Notwithstanding, there are considerations that must be reviewed prior to the organization placing the products in a larger number of locations for the client to have greater access. In the event that the demand continues to increase, our organization may consider contracting a staff composed of college students who would endeavour as interns. This would assist with the placing of the peer reviewed material on the digital media and the translations of digital material form other languages to English.
The internships would have low salaries that would enable the college students to ear additional college credits through experiential knowledge. The additional expenses that would be incurred by the organization are the fixed expenses that include the expense of the equipment and the expense of the monthly eBay Store fees, website expenses and utilities. The variable expense that include licensing, the employees’ expense and any fees derived from outsourcing work must also be considered (McConnell et al., 2009).

Maximization of Profits

The complete review of costs could be compared in order to determine the number of peer reviewed titles the organization should market. This would also involve the review of the marginal costs and the marginal revenue. In the examination of the approach of reviewing the complete expenses and the complete costs, the number that were previously indicated could enable the organization to realize an income of $8 per digital lectures if the prices were decrease. At a rate of 1000 units that review would total to $8,000. (TR = $8.000).
In addition to the concept of the modification of the older peer reviewed material could have a minimal expense due to its attribute of being performed in house. It is significant to consider that the expense of the formation of the files at $3 per peer reviewed literary article is minimal. This is attributed to the organization applying an extremely low cost approach and the rate of the use of the utilities would manifest a cost avoidant approach. In the case of 1,000 units, the expenses incurred would be $3 per units.The profits realized would be $5 per unit. Our organization would be realizing a comprehensive profit of $5,000 on every 1,000 units sold.

Entry Barriers

Entry barriers are qualities that prohibit new entrants from accessing an industrial segment (McConnell et al., 2009). Considering this industrial perspective, our organization could establish some of the barriers that would deter other market actors from entering the marketplace for digital peer reviewed lecture material on CD. Considering that the patenting of intellectual property is required in order to duplicate an author’s literary works, which should be a considerable barriers. In order to construe more effective barriers, our organization has the need of promoting our products brand. The services that could be offered to the clients could cause our organization to differentiate itself from many of the competitors. Studies have demonstrated that listening to peer reviewed material by means of digital media has manifested an attraction by the market segment that has the tendency of downloading videos and music to digital devices. The comprehension of this market segment provides a substantial market for our product.


The organization is applying a robust patented model of intellectual property that is aligned with the demand of the marketplace. In order to acquire market momentum, our organization has the requisite of developing a pricing scheme that has a competitive and profitable quality. The organization has the requisite of increasing the demand for our products by engaging more markets. Our organization, while still in its inception stage, has the requisite of maintaining its expenses at a modest level. The need of the consumers and the industries must also be considered. In addition our organization has the requisite of properly exploiting the credit markets in order to effectively expand.


eBay (2013). Fees for eBay Stores. eBay.
McConnell, C. R., Brue, S. L. & Flynn, S.M. (2009). Economics, principles problems and policies (18th ed). New York, New York: McGraw Hill/ Irwin.

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WePapers. (2020, October, 30) Good Essay On Enhancing Revenue. Retrieved June 01, 2023, from https://www.wepapers.com/samples/good-essay-on-enhancing-revenue/
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