ECO561 Team Mile Stone 1 Recommendationseconomic conditions in America

Team Mile Stone 1 Recommendations

The economic conditions in America will allow Larson to be more aggressive and use different price strategies to increase profits. The purchasing power of the average American citizen (2008 GDP per capita) is substantially higher (32,560 in U.S. versus in Germany). The Unites States has a lower unemployment rate higher (32,560 in U.S. versus in Germany) which means there is more people employed in America with extra money to spend on the Larson products. Also, the lower cost of raw material in the U.S. (80 in U.S. versus 95 in Germany) will give the American branch an opportunity to increase the price of batteries and still offer the product lower than Germany...