Competitive Strategies And Government Policies - 1968 Words

Competitive Strategies and Government Policies Group B Eco/365 November 20, 2014 Jack Foyil Competitive Strategies and Government Policies In today’s world there are constant changes that are difficult to keep up. People struggle for this reason as well on daily basis. This type of issues has come to the attention of the management from different companies around the world, the competitive environment and government policies have affected many other industries as well. Consequently, they feel that similar changes may be applicable in their food and beverage industry. There are new companies entering to the market which have to overcome some issues such as mergers, globalization, the price set up, and the sustainability of profits. It is†¦show more content†¦But the customer are always looking to try new products in the market, something they really like, and it is how new companies win customers, from another companies that have decades selling traditional products. This occurs quite often with restaurants, beverage store and fast food restaurants. As a result, some new companies’ owners have move d to acquiring other competition or just merging with them. Growth and profit are the reason for companies to merge. In acquiring or merging with another company it helps gain customers in different markets along with not having to build a new company from scratch. Therefore, merging with another company helps limit competition. However, as with most everything else in our country, there are rules and regulations that prevent some mergers. According to Colander (2010), merges need to be reviewed by the Justice Department and merges cannot result in a high percentage of market share. This is to prevent monopolies from occurring. When companies feel that they have grown as much as they can here in the United States they look toward globalization. Globalization has occurred for some companies but not others. Globalization like merging helps develop branding of the companies name other than in the United States. With high branding a company can continue to maintain profits along with increasing it. Especially, if the company knows how to work and respect the country they are in. For