Models for competitive ddynamis Essay Example | Topics and Well Written Essays - 1000 words

Models for competitive ddynamis - Essay Example The idea of using internet was later branded Grow Your Business (GYB) strategy. While DYB focusses on chances of business failure, GYB focusses on the growth gap ahead and do not consider the past or current state of the, which can yield negative effects in the future, it is all about optimism without real time consideration. (Byrne, 1998). While GYB is based on future growth, DYB considers the current position of the business in terms of mistakes, unutilized chances and comes up with a way of handling the problems. This way, the business is able to identify its weakness and strengthen them. As a result, the business is able to compete favorably. DYB provided a better foundation for the two major types of business growth and profit maximization, namely top-line growth and bottom line growth. In top line growth, one identifies lucrative ideas and invests more funds on them to generate more revenues, this can be identified by checking on how the products are doing in market and making decision on where to direct more effort based on DYB results. The bottom line growth involves cutting cost so that profits are maximized; this is the basis of DYB (Byrne, 1998). Generally, DYB have more chances of keeping a business equally competitive to the rest of the firms and is more critical in profit maximization in the long-term per iod. Cannibalization when used in business context refers to deliberate reduction in production, sales and revenue from a product because of introduction of another product from the same producer (Ward & Reiffen, 2005). Virtually, this may seem to be antagonistic to the aims of profit-oriented organization, but if carefully planned may yield more profit and help a company contain competition from rivals. Rather than producing a new product to capture new clients, the company maintains the old clients by swapping demand for the established product with demand for the new product. In essence, two items belonging to the same company competes