Report
Why are sales falling?
Since families are now earning higher disposable income they will no longer be
buying devices which are designed to be cheap and simple ‘E-Z Phone’.
Families will be likely to purchase technology which is new and more expensive
so they can have the best. Teenagers are constantly keeping up with the trends
on technology and will want to have the new smart phone will all the features
so they will be happy to pay more expensive prices for their phone. Due to Xylo
Phones not keeping up with the trends and changing their phones to be more
modern, the demand for their products is decreasing and they are losing sales
to companies such as Apple who are constantly upgrading and improving their
technology.
What problems might the firms face as a result of falling sales? Who would
this affect?
If the firm is not getting as many sales then they will not be earning as much
income, which would lead to the business having to sell some of their assets or
let some of their employees go as they cannot afford to run the business at the
same size anymore. They may even have to consider closing down the business
if they cannot afford it.
Conclusion
In conclusion, Xylo Phones are not getting enough income in due to not
keeping up with the changing market and are losing their sales to other
companies who are keeping up with the trends and competitively sell their
phones.
Recommendations
Xylo Phones should first consider improving and upgrading their phones; this
would get their phones of higher demand in the market and would attract
more customers to buy them. They could offer their phones to customers with
different payment methods, such as monthly instalments so people with less
Courtney Lowes
Why are sales falling?
Since families are now earning higher disposable income they will no longer be
buying devices which are designed to be cheap and simple ‘E-Z Phone’.
Families will be likely to purchase technology which is new and more expensive
so they can have the best. Teenagers are constantly keeping up with the trends
on technology and will want to have the new smart phone will all the features
so they will be happy to pay more expensive prices for their phone. Due to Xylo
Phones not keeping up with the trends and changing their phones to be more
modern, the demand for their products is decreasing and they are losing sales
to companies such as Apple who are constantly upgrading and improving their
technology.
What problems might the firms face as a result of falling sales? Who would
this affect?
If the firm is not getting as many sales then they will not be earning as much
income, which would lead to the business having to sell some of their assets or
let some of their employees go as they cannot afford to run the business at the
same size anymore. They may even have to consider closing down the business
if they cannot afford it.
Conclusion
In conclusion, Xylo Phones are not getting enough income in due to not
keeping up with the changing market and are losing their sales to other
companies who are keeping up with the trends and competitively sell their
phones.
Recommendations
Xylo Phones should first consider improving and upgrading their phones; this
would get their phones of higher demand in the market and would attract
more customers to buy them. They could offer their phones to customers with
different payment methods, such as monthly instalments so people with less
Courtney Lowes
