Market ConditionsEssay Preview: Market ConditionsReport this essayFuture Market Conditions PaperIntroductionWhile many establishments have left the competitive landscape, average revenue per establishment actually exceeded inflation by about 2 points over the past six years. Valued added sales in the printing industry actually outperformed inflation. Almost all industry growth came from printers who described themselves as digital print specialists. The study concluded that the commercial printing industry is a highly competitive manufacturing market that effectively leverages technology to reduce prices to customers and increase value to business owners. Survey participants expected revenue from offset to decline 7.7% over the next two years and that revenue for digital printing would increase 5.5% and value added services would grow 2.3%. While the industry retains a manufacturing focus it is moving to more of a service orientation. 77.8% of the respondents claim that “reducing production cost and improving efficiency is a current business strategy” but many lack the plans to effectively achieve this goal for the future.
Future Market StructureThe future market structure for the printing industry will remain monopolistic, as many different printing companies add to the competition. Looking ahead, with the advancements of technology and global competition, the printing industry will remain strong. Determining the future market structure is important because it will determine the strategy needed and enable the printers to see how to position themselves in the ever-changing market.
Strategies for growth include increasing customers since it is a service business. This will be done by offering new products and services and keeping the prices competitive. The other strategy would be acquisitions as consolidations are happening with many companies in the U.S. This approach could increase the size and offerings of the company, which in turn could increase profits.
As technological changes advance in this industry, firms will increase the value and effectiveness they offer their customers. As they pass on the savings to their customers, they will increase their volume for these products and services, thereby maintaining and strengthening their revenue. More customers, expanding operations and increasing profitability are what these printing companies are looking forward to in the future.
Impact of New Companies Entering the MarketDue to the fact that there is a lot of competition in this industry, each company must find ways to service their current customers and increase their customer base. The impact of new companies entering the market will cause existing companies to offer more services that will satisfy their customers needs and at the same time, keep their prices competitive with the market by differentiating their products, service and distribution and advertising. Those that cannot keep up with these changes or are poorly supervised will not survive in the future.
Investing money into new technology will increase their products and services keeping up with the growing demands of the market. Providing these products and services in a timely and cost effective way will also strengthen their customer base.
Consolidation is also a way for some of these small and medium sized companies to stay competitive in the future within this market. Global expansion is another area where the printing industry is increasing the volume of sales. As the industry grows, these products and services can be offered to customers throughout the world.
Future PricingBased on recent trends both inside and outside of the print industry, it is certain that the world market will continue to expand. Technological advancements have also seemed to expand exponentially. In light of these trends, organizations within the industry will face entirely new pricing and productivity situations. As the world moves closer to true globalization, firms inside the printing industry and other areas of the manufacturing sector will face huge new challenges. Instead of solely relying on local and regional companies for various parts and services vendors, companies in the printing industry will need to browse the world market to find the option that best suits job requirements while offering the best price. This will assist in driving down production costs for firms in the industry, allowing for lower prices and higher overall profits.
As the global economy grows and organizations throughout the world are able to develop improved economies of scale in print production, globalization will also increase competition for the field. Companies within the printing industry in various countries will capitalize, “on their position as world leaders in their fields to place themselves as providers of high quality goods” (Sheridan, 2005). This increased competition will in turn have a distinct effect on prices in the industry. The entrance of the additional firms to the industry will create a larger supply and improved choices for the consumer. This additional supply of product to the market will create a downward push on the price point.
Future ProductivityProductivity in the printing industry will also feel the effect of the expanded global marketplace and improved technology. Off shoring has become increasingly prevalent in the printing industry, as other countries get experience in the manufacturing industry and begin to build a comparative advantage for specific processes. “The benefits of off-shoring outweigh the drawbacks, given that the strategy will increase productivity, profitability, and economic growth” (Venables, 2005). As firms are able to obtain less expensive production through cheaper labor, additional technology can be purchased that will increase productivity levels.
Understanding the technological advancements in the industry will also be a key factor to consider for managers in the print industry in the years to come. When it comes to purchasing new equipment, timing is everything. In order to effectively make strategic decisions regarding equipment purchases, firms will need to actively pursue empirical data on the effects on productivity the new machinery will have. In addition, they will need to thoroughly analyze the information to determine the shelf life of the chosen technology. After time, firms will be able to develop decision-making models based on the information collected. This will allow managers in the firms to properly time purchasing decisions so that productivity is maximized while the cost of obtaining the equipment is minimized. This kind of cost/benefit analysis
The Role of the Retail Productives in the Future: Industrialization.
Many have theorized many years ago that the rapid growth of the individual’s daily labor force is directly connected to the rapid technological growth. By the 1950s, it still looked like this:
Industrialization is leading to a dramatic increase in the average number of young men and women entering the workforce at the same rate over the past eight years, as well as a decrease in the number of middle and upper-skill employees.
But as is obvious from the statistics mentioned above, even a modest change in the composition of a small number of lower-skilled employees can have major implications on productivity. As the cost of purchasing new equipment is declining and demand for the new equipment and raw materials has increased over the past few years, it is inevitable that workers will be leaving the labor market for more demanding occupations.
Industrialization also means a “divergence” in labor productivity, where the demand for the new machinery increases, which is a greater contribution to productivity than the available time to purchase or maintain the equipment. As more and more workers choose to work outside of the labor market, a decrease in the available time to purchase and maintain equipment increases the production of other necessary components related to labor power (compounds such as machinery, electrical components, chemicals, etc.) and makes it possible for more-qualified workers to go to the workplace. For more of the same, more-qualified employees will be required less time at the same time as less-qualified workers who currently work outside the labor market.
The industrialization of the manufacturing and the growing demand for physical parts increases the overall productivity and increases the number of jobs for workers. It allows workers to do more work to increase their productivity and help reduce their economic losses. This is what has led to increased productivity for middle and upper-skill workers.
Many firms are also using the advent of higher-frequency trading to manipulate the stock markets. In a recent study, IBM found that this is similar to the behavior of more traditional companies where stock prices fluctuate substantially based on factors ranging from an increase in the stock price to a price cut in terms of a change in prices.
What about the retail market?
As one of the first papers to demonstrate this, one should understand that it is very profitable to start making decisions about how to invest your capital.
For this reason, many firms are also trying to convince investors and other professionals that they should be invested in smaller firms or take a bigger risk. At the same time, smaller and less productive companies invest in newer business models by starting smaller or starting more smaller companies. Large companies also invest more in new products under the assumption that the same technology technology will be used well by large companies across their entire portfolio of products.
Investment in small and smaller firms should be encouraged in order to give managers the tools to better evaluate the technology they have on hand and to make the best decisions in terms of choosing the type of products and the production costs associated with those products.
These incentives for smaller firms vary greatly by industry, but if you are really looking to invest in a small and small company through a large investment, all you need to do is put your money where your mouth is and think.