Thomas Money Service

Thomas Money Service INC. was established in 1940 with plans on just supplying loans for small household needs. After the success of simply expanding the company, they began to issue commercial real estate loans, business acquisition financing, and business loans. In 1946, Thomas Money Service decided to expand the business incorporating equipment financing with a sister company named Future Growth Incorporated because of the high demand for construction and forestry equipment. In the process, the move was risky, but it became an abundant success as their company became a competitive member in the industry with a benefit in the market. Over 67 years, Thomas Money Service has seen repetitive growth in profits year after year and financial success. Meanwhile, the current economic conditions in the past year allowed the company to undergoing a considerable loss in their stock values and as a result, the company had to downsize 1/3 of their employees. Future Growth Inc. experienced 30% losses in sales in the prior year in the economic crisis as well as heavy flooding, forest fires, and animal activist protesters. Based on losses in sales and rivals in the equipment manufacturing industry, Thomas Money Services is requesting an analysis on the situation to determine the recovery of turning the company around and gaining the status the company once had in the competitive market (UOP, 2014). The intent of this proposal is to provide a recommendation on how the company can increase revenue, maximize profits, suggest a mix of pricing and non-pricing strategies, create barriers to entry into the market, increase product differentiation, and minimize the cost for the product.

Increasing Revenue
In the scenario, Thomas Money Services has displayed a market structure of a monopolistic competition. In the monopolistic competition market there are many buyers and sellers. The competition structure exists for Thomas Money Services because the services rendered by