Business success can only be attained through a firm understanding of who their target market is, and the ability to identify the needs of customers. In the early days of the entrepreneurial spirit in America, many entrepreneurs were actually quite conservative in their approach to business management. They were not only focused on developing products that would sell, but also thinking about how they could build up a monopoly through the means of a “protection” policy. The protection they exercised against competition was often far reaching and very often unsuccessful.
It was also found that the more monopolistic an organization was, the less likely it was to experience competitive success. Benjamin Franklin’s suggestion of establishing a monopoly for salt had been largely ignored by merchants in America. Yet, because of his example, they started clamoring for similar protections and practices in their industry. This led to the development of what we call today the retailing industry, which had its roots in what Benjamin Franklin called “The monopoly of the salt trade.”
- What business practice that contributed most to Andrew car Carnegie’s success was his innovation of new methods of manufacturing commodities.
- His innovations included the use of steam pressure cookers, which revolutionized the industry.
- His theories of productive efficiency and his attention to the details of manufacturing helped him to focus on quality rather than quantity, and this led to the success of his business ventures.
Another important aspect of business success is the ability to produce a product or service that solves a customer’s problem. Monopoly is a word that has a negative connotation, and many people equate the word with greed. Yet, the positive associations with business success go far beyond mere greed. For example, the process of marketing is a business practice that contributes greatly to business success.
The practice of marketing is an important part of all businesses, but it is particularly significant in the case of business firms that have been around for some time. The large number of small units that are required to make up a large company helps to make marketing an easily manageable task for the business firm. As a result, the marketing practices of companies like Andrew carth to have resulted in the creation of large numbers of large customers. This large number of customers provides a market for the products and services of the firm, increasing its ability to increase profits. And, even though there may be no legal requirement that a company offer insurance, the ability of such a business to attract customers and retain them helps to contribute to its overall profitability.
Although monopoly is often associated with a period of history characterized by extraordinary success, the practice of monopoly is said to contribute to business failure because it hinders the ability of a business to respond to changes in the market. As a result, a business firm operating under a monopoly condition is less able to adjust to changing conditions than those firms that do not operate under this condition. The ability of a firm to successfully enter or expand into new markets is another area in which the strengths of the business dominate the weaknesses of the competitors. The dominance of the corporation in specific markets, combined with the strength of the market position, is what gives any firm the ability to achieve the level of business success that it desires.