INtro To Entrprenueurship Essay 3
Crysta Porter
Mrs. Clark
Intro to entrepreneurship
Gross Profit and Net Profit Tuesday May 5th 2015
Gross Profit and Net Profit
1. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points)
Gross profit is before the government gets it. Net profit is what you get after the taxes have been taken out or paid. So both are very important for your business but net profit would be what you look at for profit from your company because that is the money that goes into your pocket.
2. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (2-4 sentences. 3.0 points)
Hollister. Some direct competitors would be American Eagle, Aeropostale, and body central. They are direct competitors because they sell the same product as hollister. Some indirect competitors would be places like Walmart, Target, and JC Penny. They are indirect competitors because they not only sell the same product as Hollister they also sell products that hollister does not sell.
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points)
Some nonprice competition strategies would be places offering the same product, but for more of a price, so they also can offer insurance on the product that if they are not happy with it or if it doesn’t work they can bring it back. They can also offer the same product with more of the product and that’s why the product costs more. Another thing they can offer is price matching it so that they don’t lose the customers.
4. Describe a nonprice competition strategy that you have seen a company use. Do you think this strategy was effective? Why or why not? (3-6
Mrs. Clark
Intro to entrepreneurship
Gross Profit and Net Profit Tuesday May 5th 2015
Gross Profit and Net Profit
1. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points)
Gross profit is before the government gets it. Net profit is what you get after the taxes have been taken out or paid. So both are very important for your business but net profit would be what you look at for profit from your company because that is the money that goes into your pocket.
2. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (2-4 sentences. 3.0 points)
Hollister. Some direct competitors would be American Eagle, Aeropostale, and body central. They are direct competitors because they sell the same product as hollister. Some indirect competitors would be places like Walmart, Target, and JC Penny. They are indirect competitors because they not only sell the same product as Hollister they also sell products that hollister does not sell.
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points)
Some nonprice competition strategies would be places offering the same product, but for more of a price, so they also can offer insurance on the product that if they are not happy with it or if it doesn’t work they can bring it back. They can also offer the same product with more of the product and that’s why the product costs more. Another thing they can offer is price matching it so that they don’t lose the customers.
4. Describe a nonprice competition strategy that you have seen a company use. Do you think this strategy was effective? Why or why not? (3-6