January 26, 2015
Mr. Ali Boloorian In creating a business, you have many decisions to make and one of the most important decisions you will make will be, is there a need for your new product or service from the consumers perspective and not your own. Keeping the information at the top of your priority list, this will help you to better prepare for your new business.
I have chosen to do my business plan with providing a service verses a tangle product. Angels Home Health Agency will be providing a service verses a product. Since products are tangible and services are intangible; it will be more of a challenge to market my business, however, nonetheless, it can be done.
It is extremely important when deciding to have a business to do your research. A part of your research should include asking yourself, is this service or product needed? To help with your research there are basic economic principles to consider. Identifying what type of business is you would like to create is a start. A market is a set of buyers and sellers, commonly referred to as agents, who through their interaction, both real and potential, determine the price of good or a set of goods. The concept of a market structure is therefore understood as those characteristics of a market that influence the behavior and results of the firms working in that market, according to Policonomics (2012) There are several different types of market structures. In selecting Angels Home Health Agency, the market structure for this type of business would be defined as monopolistic competition. Monopolistic competition is defined as the market that is formed by a high number of firms that produce a similar good that can be seen as unique due to differentiation that will allow prices to be held up higher than marginal costs. In other words, each producer will be considered as a monopoly thanks to differentiation, but the whole…