Tom Jackson has been operating steakhouse that only deal with the provision of dinners only. In this specialty, he did not face much competition as no firms were offering the same service. One can enjoy the freedom when operating in the market alone, entry in the market by a new company will force the existing business to find alternatives of competing for the new firms out (Brenner & Rogbeer, 2015). The aim of the paper is to identify the ways which plan action I would take after discovering that Tom Jackson is planning to extend his services to businesses.
The announcement of the new conference in the town that is meant to increase the customer attracted new player in the market. On realizing the new player in the market, Tom decided to diversify his services to deal with both households and the business. It happened that the worker of the Morton Steakhouse the new firm in the market learnt of Jacksons plans.
There are few actions that Morton’s steakhouse will take concerning the Tom’s plan. The first action plan will be carrying out the market research to identify whether the new venture is more profitable. It will be helpful to Morton in making the decision based on the feasibility report prepared from the market research (Babin & Zikmund, 2015). The Aim of Morton is to have as many customers as possible so as to be able to compete Tom out of the market. Therefore, if they find the new venture profitable, they will consider venturing into the businesses to compete Tom to out. From the estimated profits, it is clear that households are more productive that businesses (Walker, 2013). Therefore, Morton’s will specialize on the Household by providing better services that Tom to get more customer
References
Babin, B., & Zikmund, W. (2015). Essentials of marketing research. Nelson Education.
Brenner, B., & Rogbeer, S. (2015). Knowledge sharing dynamics and healthy intra-firm competition." Academy of Management Proceedings. Academy of Management, 25(1).
Walker, J. W. (2013). Human resource planning1990s style. Human Resource Planning: Solutions to Key Business Issues Selected Articles, 13(4), 31.
