Lily Johnson

Attaining maximum sales volume before reaching marketing saturation of the product or service is referred to as market potential. The market potential uses the sales forecast as the method of determining the future consumer needs. Thus, Gap Incorporation organization should look for the best market potential. This is achieved through carrying out a market analysis. It includes findings of what groups of market or customers exist, their needs and the group of customers it needs to serve. Also, it includes the kind of services or products it requires to develop in order to meet their needs, as well as the reaction of the organization’s competitors, the prices the organization uses and how distribution of services and products is done to the customer.

The first aspect of any organization consists of identifying new business opportunities. This will mean several things, of what the organization intends to do. First, it is good to be abreast of what happens in your industry i.e. what the competitors are up to, which is in terms of service and products offering, marketing strategies and pricing. Second, you will be required to understand what your organization is up to, to understand your organization’s strategy and how it compares with its competitors. Third, concentrate on the technological trend in the market which keeps on changing with time in the economy. Thus, it is important that the organization manager keeps ups with this change in the organization. Once some viable and new technology gets into the industry, he/she should be ready to grab it before the competitors do. They will not want to be left out. If the manager utilizes the advances coming into the industry, and be the first to grab them, he may be able to win over and keep his competitor’s customers.

Furthermore, there are some people who spend top dollar, but most people are price-conscious. It is essential to realize that it cannot always be the lowest price service provider, and still expect to maintain a healthy profit margin. Thus, there are so many ways used to lure customers. These include coupons, sales discounts, financing packages and providing convenient return policies. Lastly, the government has to be involved in the organization. Thus, it is essential for an organization to keep tabs according to what the lawmakers’ want, because things can happen contrary to the law, forcing the government to react. This can affect the organization greatly.

Another factor to be considered in the organization is the variable cost and fixed cost. Variable cost is the cost incurred when an organization is producing and it keeps on varying with the level of production. The organization should minimize the cost and try to increase the level of production. On the other hand, fixed cost is the cost not tied to the output. This cost should also be minimized. There is also the issue of cost structure. The cost structure involves the structure of cost employed in the organization. The organization should employ a cost structure that is more efficient and, that in turn, gives great returns. Gap Incorporation should deal with the issue of wages and benefits very keenly. The organization should ensure that the wages burden is not too high. This is due to the organization’s aim to maximize its profits. Thus, the organization should look forward to minimizing the wage burden and maximizing its profit.

The last feature is the supply and demand analysis. The organization head has a duty to carry out a supply and demand analysis. The analysis aims at ensuring that the organization is able to meet the market’s satisfaction, and no waste is encountered. The organization should ensure that they balance the supply to the demand for it to be competitive in the market. A researcher given answers to a number of sellers, barrier to entry and product characteristics, can identify the market structure of an organization. To change market conditions and organization dynamic, it often requires a researcher to be able to predict the evolution of the market structure with time.