Sunday, 27 January 2013

Boom or recession - blogging sundays


Blogging Sundays: Mothercare tries to sharpen up and cash in on baby boom…

Nothing is too good for today's infants, so midmarket retailer Mothercare must raise its game or lose even more market share.

This article was written during a boom period because not only did the baby growth boom during this period, but so did the sales for shops and demand for baby products. This creates a boom period for such shops and products because there are high demands for this product. This means such companies need to increase their supply to meet their demand.

This article was written in January 2013, during a recession and was at a percentage change of     -0.3%. So even though this period was a recession period, mothercare products were at high demand. However, mothercare must raise its supplies to meet its demanding numbers otherwise mothers and customers will buy from their rivalry companies, as substitute goods. If they don’t meet their demands mothercare will lose even more of its market share because it isnt gaining enough income let alone any profit.


 

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