The aforementioned businesses were all in the news today to show business studies students that the stuff they learn about in class is really quite important!
First up in this Hustle article, Apple aims to increase profits further by developing its graphics technology “in-house” instead of using third-party chip-makers, Imagination Technologies. This enables Apple to streamline its supply-chain thus increasing control and quality. Not all good news though; the announcement led to Imagination Technologies’ market capitalisation being reduced by 70%! According to Porter, Apple reduces the power of its suppliers, whilst Imagination Technologies feel the devastating power of what was their biggest customer.
Next up, Amazon are expanding into the £96.5bn on-line business supplies markets. This example of market development is very much in-line with their core business and looks set to help small businesses everywhere; 100 million products, VAT-free pricing and software that tracks and limits spending are the three differentiating factors that should ensure this business-to-business expansion succeeds.
Finally, ASOS have benefitted from the weak pound as greater international demand has led to their exports increasing by 42%. Whilst they budgeted for overall sales growth of 25–30%, it looks as if they’ll have a favourable variance of approximately 5%, mostly due to their 30% increase active worldwide customers.
So much business studies in one blog!
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