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Benefits of Blogs For Business Marketing

After the advent of the World Wide Web the next big fad was blogging. Suddenly everybody from home-makers, young mothers, businessmen, and grandparents were blogging. Personal blogs sprung up dime a dozen all over the internet, leading to a blogging network of similar blogs and bloggers. The word ‘blog’ sprung from the term ‘web log’ coined by Jorn Barger in 1997. The blogging boom began with the appearance of easy-to-use blogging software developed in 1999.

What exactly is a blog?

A blog is an online journal that can be updated at your convenience. You can have a personal blog, like keeping a diary open for public viewing or a business blog maintained in order to have a platform to discuss business-related topics and share your expertise online with potential customers, interested clients, or your employees.

7 Marketing benefits of having a business blog

Having a business blog can have several advantages for a small business on a tight marketing budget. If you do not have web designing know-how, a blog is a great alternative that offers free setup and easy maintenance.

You can offer helpful hints and promote your own products, upload instructional or demonstrational videos on to your blog. You can build a subscriber base using your blog, and generate leads by notifying your followers when you have new content up. Google’s Blogger allows for Google AdWords to post ads on related products or services in your blogging space, giving you the option of passive earnings through affiliate marketing. Listed here are 7 important benefits blogging offers to business marketing:

1. Low-cost internet marketing tool: Opening a blogging account on Blogger or WordPress is free and you have the required software to be all set in a few hours. However, it is important to host your own blog even if you use free blogging software. Registering your own domain name and having your blog on your own server space gives you better visibility in search engine rankings.

2. Drive web traffic to your business website: When you have a blog and a regular following it is like having another website, but with reduced functionality. Your blog will rely on SEO articles, images, or videos. Your followers can be redirected to your business website if you have one, with the goal of converting interest or leads into sales.

Make an SEO keyword list for your niche market and base your articles and videos on these keywords. This will drive both natural and paid search to your blog. Include your blog URL in your social networking site profiles encouraging friends or fans to follow your business blog. This will drive traffic if you have a reputation for great information or expertise in chosen your niche.

3. Build your product or brand image: You can build your brand imageusing your blog. People reading your blog maybe interested to know what you do – add your business widget or button to your blog. Write a product description or post an infomercial.

4. Maintain a customer dialog: Blogs are interactive, which means that your readers can interact with you through posted comments and questions on the blog (which can be moderated). This is your chance to weigh customer opinion, suggestions, and comments.

5. Gain new customers: Some followers may recommend your blog to others bringing you new business prospects.

6. Network with other similar businesses: All businesses run on internal and external networks. Keeping up with similar blogs and their articles can give you an opportunity to comment on their articles while adding value to them presenting your knowledge on the subject. A reader interested in their blog may click-through to yours to read more! These kinds of click-throughs are free and generate more traffic to your blog.

7. Great public relations outlet: In case, your business runs into some bad press your blog can be your chance to demonstrate a clean slate. You can make your stand clear or challenge a public opinion. As regular readers are aware of who you are and know you from regular online interaction, you have a better chance to garner support through viral means.

Blogs are great additions to your Social media marketing (SMM) strategy. For those who do not have the money to pay for website design and site building, blogs double up as a website cum interactive online tool. The only downside is that they do not provide the functionality of web pages, have limits for e-commerce solutions, and can be time-consuming with regular posts; but blogs rank high as a low-cost marketing option.

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Some Thoughts On Blogging

I am the sort of person who needs to have a good reason for doing something. I, of course, think that everyone is like me so that’s why I need to tell you why you should care about what I think about blogging. I have been blogging long enough, I think, to proclaim myself an “experienced blogger.” It has been about eighteen months; not nearly as long as some more established bloggers but definitely long enough to have a real grasp of what blogging is all about. I have spent these eighteen months, not in recording half-hearted, or trivial scribblings and jottings just to fill pages, but with intense concentration and carefully thought out, posts. Sometimes, I struggled with them. The mistakes I have made since I first began blogging would fill a textbook and this experience alone is valuable, especially for others who do not want to make the mistakes I have made.

I am no longer a “newbie.” I have the aforementioned experience. Second, If you are a new blogger, or if you are thinking about starting a blog, this post will give you a sort of realistic glimpse into this very popular venue of personal expression so you can decide early on what you want to accomplish or even whether or not you really want to become actively involved with blogging. Even experienced bloggers may find some interest here by getting a chance to compare their experiences with mine and use this as a measure of how much better they have done or what more they might like to do. So, now that I have your attention, we can have a nice conversation about the “blogging experience.”

I never thought of myself as a “blogger.” I never even intended to get involved with blogging. I thought this was for people with no social life, or no outside interests; people with a lot of time on their hands; people who are somehow socially challenged, misanthropic, agoraphobic, or even lycanthropic (people who think they are, or may actually be, werewolves). I wanted none of that. In fact, there may be bloggers who fit these categories, but there are, I am certain, teachers, politicians, professional people and neighbors who may easily fall into any of these categories, also. It doesn’t mean that teaching, politics, professions or other pursuits peopled by anti-social types are not worth pursuing. For that reason, I decided to give blogging a try. I was interested in Internet business and I liked to write, so, blogging was perfect for me in the time I had available.

I have since learned, that blogging is so popular and so fascinating because so many different kinds of people are now blogging. Besides the antisocial types, there are very friendly and sociable types and everyone can produce successful blogs. It is truly a populist art form and that means that there are so many types of blogs being created that the field is a “content-rich” reservoir of creativity. There are some poor blogs, yes. There are also some extraordinarily superb blogs. There is everything in between. Blogging is accessible to everyone, both to create and to enjoy.

When I stop and think about some things I have learned about blogging, I think first about the commitment one makes when becoming a blogger. Blogging is not like writing a term paper for school where you can write one paper and be done with it. It is more like being a newspaper reporter, only, with self-imposed deadlines. Once you have a blog and people discover it, you have a sort of social obligation to continue managing your blog until such time as you decide to shut it down and remove it from circulation. Of course you do not have to manage your blog but to the extent that you manage it and give proper attention to developing your blog, you will be successful as with sports, arts or any activity requiring effort and skill.

That is the second thing that I learned: The more effort a blogger expends, the more serious he or she is about creating meaningful posts and upgrading the blog with widgets and apps., to improve functionality for the convenience of visitors, the better the blog becomes as evidenced by positive comments and increasing traffic. Blogging is not particularly difficult, but it does require work; sometimes considerable work. It requires time as well: With experience, writing posts and handling the other chores of managing a blog (such answering comments, deleting spam comments and adding advertisements) becomes easier and less time consuming, but still, a certain amount of time must necessarily be spent in performing these tasks.

Another lesson learned is that blogging is fun. If you enjoy writing and creating; finding new ideas and training yourself to be more observant so you can come up with new angles and uniquely different ways of perceiving a subject, you will enjoy the blogging experience. You will have FUN.

Is there a certain personality type that is especially well-suited for blogging? I was reading comments on a blog recently, in which a blogger mentioned that she believed that an extrovert would be well suited to the demands of blogging because of the social nature of this Internet art form. She felt that a “people- person” would respond better to readers than less sociable types and be more comfortable in dealing with visitors, in the same way as, perhaps, a retail shop owner would be in dealing with customers in a physical store. I don’t disagree with this opinion but that is not the whole story. The blog is a public forum and (hopefully) thousands of people will visit your blog. I think it makes the experience easier and more pleasant if you like people and enjoy interacting with them in the way that many successful bloggers interact with their readers.

Blogging, however, is a bit different than simply exchanging e-mails or socialising in a physical setting: it is virtual socializing, meaning that while the people are very real, you can’t see them. There is a vast difference in having 15,000 or 50,000 or 500,000 visitors attending an event at which you are appearing on stage to greet, inform, entertain them and answer questions and the same number visiting your blog when you can comfortably have the same interaction while, say, sitting in your pajamas, cup of coffee or whatever in your hand. A true extrovert could manage the first situation and love it without melting into a puddle of embarrassment because of stage fright. An introvert or simply a more shy individual would definitely shrink from this kind of social interaction and avoid it at all costs.

The virtual nature of blogging allows both extroverts and introverts and all personality types to easily manage the social aspect of blogging with the least discomfort. There are good, creative thinkers representing all personality types who can successfully manage a blog and its social dimension. There is one important point that I want to make: I think it IS important that a blogger should like people, even if they do not prefer to mingle with crowds. The reason I say this is because I do think one’s personality shows through one’s writing style and choice of subject matter and words. The way you express yourself can give clues to the reading audience about your personality and whether you are a friendly, civil sort of person or a rough, vulgar, misanthrope. That does not mean that if you are not a nice person, your blog will not be read. Blogs do tend to attract like-minded people, but, generally, people respond more positively to positive people. The suggested guideline I would give, therefore, especially, if you do not yet have a blog but are thinking about it, is this: “If you hate people and find them annoying, choose another activity like scatology or buoy maintenance or searching for comets and asteroids from exotic desert locations.”

Another thought that has occurred to me about blogging is that there are all sorts of blogs that show tremendous variation in degree of polish and sophistication. Some are quite elementary and even crude. Some are as casual and unpretentious as an unself-conscious chat with friends. Some are so well crafted that they could be excerpts from a Doctoral Thesis. The range of writing expertise is “huge” and if we were talking about painting, it would be the same as some people painting by numbers and great artists, producing masterpieces.

Blogging is so universally accessible that we share our field with brilliant professional writers, journalists and business executives (and some brilliant “ordinary” non-professional writers) and barely literate, sometimes rather inept, unskilled “non-writers” who manage somehow, to communicate in the written word despite their lack of expertise. The beauty of this mix of people with different backgrounds and skill-levels is that there is nothing wrong with this. It is “all-good,” in the sense that blogging is a truly equal-opportunity art and regardless of the results, there are readers of every skill level, also, who will gravitate to the style, subject matter and level of writing that they are most comfortable with. This is, indeed, the “Marketplace” and the reading tastes of “blog consumers” help to shape the marketplace and the art.

That is what I like about blogging. No one needs is excluded. Anyone who wants to can have a blog and can even succeed wonderfully if they pay attention to common sense principles such as discussed in my previous posts and articulated by other bloggers. Something else I like about blogging (as long as I am on the subject) is that whenever I discover something really interesting and even life-changing, I do not have to bore my friends who may not be interested (although, it seems reasonable that if people are your friends they should share some of your interests)—anyway, I do not have to find someone to excitedly share my discovery with—I can blog about it. I may bore someone, but of all the people who will read about it, some will think: “Hey! that is really ‘cool’” or: “AWESOME!” When you have a blog, you always have people to share marvelous things with. That in itself, makes it all worthwhile for me; it can make blogging a great adventure for any untitled, Persona Non Grata who wants to be able to say: “Oh me? I’m a blogger- I blog.”

It is now, unquestionably, a most respectable occupation.

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Commercial Loans In UK – To Fix Your Financial Crunches

While setting up or reinstating a business, ample funds are required according to the size of the empire that is being dealt with. Sparing out cash for this purpose becomes very difficult even for a businessman. To take care of the financial fixes in commercial sector, there are commercial loans in UK that help the businessmen.

Commercial loans in UK are available to businessmen who either want to remodel a business or set up a completely new business. Money can be required for any purpose like buying machinery, leasing property, getting the registrations done, franchises, etc.

The lender of commercial loans in UK has to be shown a properly drafted business plan which is required to be shown to the lender. This is necessary to convince the lender about the new business. In case the borrower wants to reinstate an already set up business, a profile of the business and the financial statement is also required.

On pledging collateral for commercial loans in UK, the amount can be increased, the rate reduced and the duration of the repayment term can be increased. This is the secured mode of borrowing money. However, not pledging collateral is also a no-problem situation. The borrower can avail affordable rates by showing a promising business plan.

Bad creditors who have arrears, defaults, County court judgments, or an adverse credit can also avail commercial loan in the UK. They can lower the rates and terms offered to them by securing collateral or with a convincing plan of action for the judicious use of the money.

To cater to a commercial need, loans cannot be borrowed without any pre-approval research. The borrower has to be doubly careful so that he is not paying above the just figures. The online method of research solves this purpose. It helps the borrower in comparing deals and choosing from among them.

Commercial loans in UK benefit the borrowers greatly by providing an initial impetus to the business. These loans help in establishment of great empires.

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Commercial Loans In UK – Offers At Door Steps

The configuration of commercial loans in UK has set ablaze the curiosity among the business persons of UK to pick up more information and knowledge for a quick approval. This can be noticed because business professional are deriving rewarding results from the objectives subtly fused in the commercial loans in UK. Commercial loans in UK with elevated and high esteem policies are oriented to aid entrepreneurs monetarily corresponding to the investments necessary for any business activities. Being a colonial state from many decades UK has been facing challenges to keep alive its colonial culture against the tide of time, and for such reasons commercial loans in UK have manipulated schemes to prop the fresh and existing business ideas.

With the sole aim to make it popular and easy to access by applicants, commercial loans in UK are bisected into secured and unsecured forms. Both fractions, secured and unsecured, provide the flow of amount with or without pledging collateral respectively, making it affordable and according to ones ability. Taking into consideration the use of collateral and the equity it carries, the loan amount is approved. The released finance can be used for multiple purposes and by paying interest rates for a single amount. In the numbers of the numerous demands, few are cited as, purchasing commercial sites, equipments, machineries, renovation of office etc. Commercial loans in UK are offered with both short and elongated reimbursement terms depending upon factors like use of collateral, loan amount, rate of interest and monthly installments return. All the privileges of commercial loans are unleashed without discrimination and if applicants fill the candidature with accurate details of credit and personal history.

Depicted with rational policies and sparing the headache commercial loans in UK are now made available through the online application. The business professionals can also dub the funds of commercial loans in UK or buy shares and stocks of the companies which seem to yield profit. So, it is a great relief to the individuals who are hatching their desires and ideas to set business and also an opportunity for those who are looking for an external fiscal support to expand their business to their expected horizon.

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Link Trust And Link Authority Preferred By Search Engines

If you want your site to be moderately to highly successful, then the first thing that you are going to have to do is get comfortable with the search engines. Search engine marketing is here to stay, though it may change from year to year and not always resemble tomorrow what it does today. If you are having trouble getting your rankings up, then you may not be getting enough inbound links with real link authority or link trust. Search engines may see that your site is filled with “spammy” links, and thus decide that your site is spammy as well. That’s why it is important not to accept just any backlink that you can get. In order to do well with your web endeavor, you need true link authority. In so doing, you will boost your own. But how can you know whether the search engine views a link with trust?

It starts with frequency. Sites that are truly link authorities have something useful to say most every day. While quality is important in the building of a site’s content, that quality is negated by lazy and despondent posting practices. Your readers, in order to frequent what you have to say each day, need to know that you are going to be there for them, and that you are not going to waste their time. The attention spans of web surfers are getting shorter, and it is not because of stupidity. Instead it’s because each new day, someone has something to say. There are too many options for your audience to remember you if you are not going to commit to your blog or site.

At the same time as you need posting frequency, you also need posting quality. After all, you could post eight times per day, seven days per week, but if all you do is rewrite other stories from trusted link authorities and create duplicate content, you will be viewed by the search engines as a bust. Information comes hard and fast this day and age, and if you are not unique, if you don’t stand out from the rest of the pack, then you will be doomed to obscurity.

Once you have quality and frequency in place, you need to next turn efforts to establishing the lines of communication between your own sites and other sites with link authority. You could try to do this manually, or you could put a good software program to use for you, seeking out blogs and sites that accept backlinks. After you ensure that the site is a quality site, you can establish a partnership that will be beneficial to you both. But before you succeed at that step, you have to have a quality site yourself.

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QQTOTO88 Slot Togel: Situs Judi Online Terbesar Di Indonesia 2023

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QQTOTO 88 adalah salah satu situs judi online terbesar di Indonesia yang menyediakan berbagai macam permainan seperti slot games dan qqtoto togel online. Sebagai situs judi online, QQTOTO 88 telah memperoleh lisensi dari PAGCOR (Philippine Amusement and Gaming Corporation) yang menunjukkan kredibilitas dan legalitas dari platform ini. Selain itu, QQTOTO 88 juga menawarkan berbagai fitur menarik yang dapat meningkatkan pengalaman bermain para pemainnya.

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Selain menawarkan slot games, QQTOTO 88 juga menyediakan togel online untuk para pemainnya. Togel online adalah bentuk taruhan yang melibatkan prediksi angka dalam sebuah permainan. Karena kepopulerannya di Indonesia, togel online menjadi salah satu permainan yang banyak dicari oleh para pemain judi online. Dengan menyediakan layanan togel online, QQTOTO 88 memberikan opsi tambahan bagi para pemainnya untuk mencoba peruntungan mereka dan meraih kemenangan besar.

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Keamanan dan privasi menjadi hal yang sangat penting dalam bermain judi online. QQTOTO 88 menjamin keamanan dan privasi para pemainnya dengan menggunakan teknologi enkripsi SSL 128-bit untuk melindungi transaksi dan informasi pribadi. Platform ini juga telah memperoleh sertifikat lisensi resmi dari PAGCOR. Dengan keamanan dan privasi yang terjamin, para pemain dapat bermain dengan tenang tanpa khawatir akan kebocoran data.

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Awaken Your Giant Within and Achieve Your Dreams

Do you believe you can do everything you really desire if you want it badly enough. Are you prepared to do whatever it takes to achieve your dreams? This is why there are experts in every fields, they were prepared to!

This afternoon I visited a personal development forum and found and answered some interesting questions. Personal development and achieving your dreams are areas I am fascinated by. I strongly believe most things are possible given sufficient time effort determination and planning.

There is a story of king George V1 which may be true, that to cure his speech impediment, he put pebbles in his mouth to talk around and improve his diction, whether true or not he worked hard with his therapist and achieved great speeches during the wartime. He was a dedicated monarch.

Read the true and inspiring story of Percy Ross who was born into an impoverished immigrant Jewish family, but who, with determination and his fathers guidance became a millionaire and philanthropist. Before he died he gave away all his remaining money to needy people. It is a very touching story sure to inspire you. I’m sure there are many other examples I could give for achieving dreams but these came to mind.

I have personal examples of success through belief and dedication. I was accepted into a teachers program I achieved the desired exams in 5 months. Also a few years ago I decided to set up an online business, despite my families disbelief, as I could hardly send email, a total novice. I also decided to winter in the sun, I am now doing both.

So you too can turn your doubts into beliefs and achieve your dreams. First decide what you really want and visualise daily, make a plan how and when it will happen. Visualise the completed dream and be sure you are happy with the expected outcome. Then dwell on your dream with increasing anticipation knowing it is possible. As your subconscious believes you really want it, it will guide you to achieve it.

You may want to start an online business or it could be a way of funding your dream. Either way it could be an exciting hobby that can be very fulfilling. With your laptop you can work anywhere.

Affiliate marketing is a simple way to begin online, your coach will provide products sales pages and training, you will work to a tried and tested plan and earn generous commission whilst you are learning the techniques. So whatever your dreams make a plan to achieve them.

Start NOW and make 2016 a year to remember!

Books you might like to read:

“Ask for the Moon and Get It!” by Percy Ross

“Awaken the Giant Within” by Anthony Robbins.

“The Power of Your Subconscious Mind” by Joseph Murphy.

“Feel the Fear and Do It Anyway” by Susan Jeffers.

“Building an Online Cash Cow” by Anthony Barlow

Hello My name is Anne

So if you really are Serious about Replacing Your Day-Job & Working at Home

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Ultimate 7 Steps To Online Business Success

1. Create A Vision

If you are involved in the network marketing business for very long, you will hear someone say you need to define your ‘why’.

This is crucial because as humans, we are hard-wired to recall the past. We are wired for survival mode. In ancient times, that is how people lived from day-to-day. Your brain will fire in a way that you perceive something as danger when the only way to really find out is to take action. In reality, your brain is protecting you, but it doesn’t know what the outcome is going to be.

Don’t hold back on your past vision of the times you have not succeeded. When you are looking back at your journey, it is easy to focus on the mistakes instead of focusing on the successes you achieved.

Creating a vision gives you something to look forward to. Something to accomplish in the future. If you don’t look ahead, you will fall back on the times that didn’t work out for you.

Live that vision in your mind so you actually experience the ‘feelings’ of success. Allow yourself the feelings of joy, purpose, abundance, happiness, etc.

In traditional network marketing, many people become too attached and give in to the feeling of scarcity. The same thing can happen with online marketing. In your business and in your life, negative feelings attract more negative feelings.

When you are conscious of your day-to-day feelings more people will be attracted to you and want to be around you, which creates more abundance.

2. Don’t Take Things Personally

In your business it is normal to have profit, loss, liability, expenses, etc. When you struggle with those issues, don’t take it personally. Don’t give in to the feeling that you aren’t good enough, you can’t make this happen, or what will I do if this doesn’t work.

If something doesn’t work, it just means it didn’t work. Don’t take it personally and try something else. This takes the emotion and drama out of it.

3. Know Your Audience

The more specific you can be when targeting your audience, the more successful you will be. If you are targeting network marketers, that is too broad. Be specific and fine tune your audience over time. Test your methods and find out what works and what doesn’t.

Another thing to keep in mind is that your target audience may not be profitable for you, so find the audience that responds best to your methods and work with that.

4. Attend Live Events

This is where you meet people and build networks. Surround yourself with like-minded people who know your struggles. Attending live events will give you belief and is the cornerstone for continued growth in your business.

5. Never Ever Give Up

Most people give up too early – before they reach success. When growing your business, the mechanics of running it are 10-20% while mindset is 80-90%. Accept that you can move forward, grow daily and make money.

6. Never Compare Yourself With Someone Else

Resist the temptation to compare yourself with the results of others. Don’t look at how long someone else has been involved or the amount of money they are making and compare that to your results. You don’t know their past experiences that have led them to the place they are today.

The only time to compare yourself with others is when you say, “If they can do it, so can I”.

7. Take Action Every Single Day

Even if you only have 10-15 minutes each day, consistently spend that time working on your business. Action is the only thing that will produce results. Action is what will create both habit and momentum.

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A Story for the Australian Automotive Industry

Introduction to the Topic

Australia is one of only a few countries with the capabilities to design cars from scratch and manufacture in significant volumes. Car sales in Australia are also an important factor of the Australian Automotive Industry and the Australian Economy in total.

The Australian Auto Industry (A.A.I. in short) can be divided into two interrelated sectors, the Production ( Manufacturing) sector and the Car Sales (or Import-Sales) sector, both equally important for the total performance of the A.A.I. On one hand, the Manufacturing sector refers to the market conditions under which Australian Manufacturing businesses compete, by producing vehicles and related products, with the main aim of maximizing profits. On the other hand, the Sales sector refers to the market conditions under which car representative sale businesses compete, by the sale of cars and related products, having the same aim with businesses within sector one.

It is very important to state the distinction between these two sectors within the A.A.I., as we will be talking about two different market structures, business strategies, competition conditions, e.t.c. In order to analyse these market structures it would be appropriate to develop two economic models, one for each A.A.I. sector.

1.1-Analyzing the Manufacturing Sector

There is only one market structure that can best describe the market conditions in the Manufacturing sector if A.A.I., this is Oligopoly. As there are only two organizations that produce cars in Australia, and these are Ford and Holden, the competition methods and pricing strategies are based between these two organizations. The following economic model shall help define the competition and economic conditions for the Australian Automotive Manufacturing market.

The first important characteristic of Oligopoly that needs to be stated is that prices between competitors tend to be “sticky”, which means that they change less frequently than any other market structure. This statement will be explained in more detail later on, when we will be developing the Game-Theory model, as it is a very important concept of competition. The second most important characteristic is that when prices do change, firms are likely to change their pricing policies together. These two characteristics can boost up competition within the market. Firms will either try to match rivals’ price changes or ignore them. This is depended on the Game-Theory that is explained bellow.

However, the recent market conditions for the Australian Automotive Industry and the actions of the Australian Government have worsen the competition conditions and possible pricing options available for firms in the market. The production and maintenance costs for a manufacturing business in Australia are already high and rising, mostly due to lack of economic resources and advance of technology. That is, as Holden and Ford try to compete each other, given that prices tend to be “sticky”, they are forced to focus on technological advantage and marketing. Both of these business sectors produce high costs. Furthermore, the Australian government has made it clear that is unwilling to further subsidize automotive organizations in the market. All these factors stated above produce a negative effect on the competitiveness of both firms. In other words, rising costs alongside with decreased revenue push firms in experiencing lower and decreasing levels of profitability.

Profitability and the level of competitiveness are highly interrelated in an oligopolistic market structure, being the two most important factors, alongside with product differentiation, in the competition policies that the firms follow. When we say that the level of competitiveness of a firm is very low, we mean that the firm cannot react effectively to any price changes or competition changes or even changes in production costs. This may leave the firm depended on its’ competitor’s pricing and competition actions, not being able to affect the market competitiveness at all. The firm is then exposed to external danger and can be pushed out of the market, or even worse to shut production and declare bankrupt.

1.2- The Game-Theory Model for Oligopoly

The Game Theory model is used to explain the pricing and competition policies of firms in an oligopolistic market structure. Furthermore, it can show the few different competition policies based on pricing that the two firms can follow, that is High and Low as stated above. All firms in this market structure follow a Game-Theory model, although it is surely more detailed than our example, in the process of trying to forecast competitors’ pricing and competition movements and also keep track of the competition levels in the market and market share. But how does this happen?

For example, let’s say that there are four different fields, each divided in half. These fields represent the pricing strategies that Holden and Ford may use in the process of competing each other. Field A and C represent a High-Pricing policy for Holden, while fields A and B represent a High-Pricing policy for Ford. Lastly, fields B and D represent a Low-Pricing policy for Holden, while fields C and D represent a Low-Pricing policy for Ford. When both firms decide to follow a High-Pricing policy they share a profit of, let’s say, $12 million. If Holden decided to move to a Low-Pricing policy it will experience a maximum of $15 million profit, while Ford’s profitability will fall to $6 million. The exact opposite may also occur, while if both firms decided to follow a Low-Pricing policy they would realize a maximum of $8 million of profit.

What we can identify from the above example is that firms in an oligopolistic competitive market rarely change their pricing policies because this may produce a negative effect on their profitability levels. However, Holden and Ford, being the only two firms in the Australian Automotive Industry, they will focus on competing through product differentiation and marketing. That is, they will try to compete by differentiating their products, for example by producing vehicles with different features, or even base their production on technological advantage. Marketing plays an important role here, as it is the main tool that delivers and connects the customer with product. For example, if Holden introduces a new driving technology that improves driving experience and safety and produces this technology alongside with a newly designed vehicle, it is quite likely that Holden will effectively differentiate its newly designed vehicle from a relative vehicle of Ford and lure more customers in the store. Holden may also use marketing techniques to deliver this technology to the public, in the form of knowledge; hence try to boost sales without changing its pricing policy. However, it is important to state that this new technology may produce higher production costs, if not evaluated properly; hence Holden can only rely in increasing its market share to gain greater profitability. The sales part, however, will be analyzed in more extend within the next chapter of this report.

The Game-Theory is not just a theory for the Automotive Industry in Australia, it’s a fact. It shows us that auto manufacturers in Australia have based their competition strategies on all the factors stated above and as much as they possibly can on pricing strategies. They may advertise that they have low prices, but in fact their prices are very stable. If we have a close look at Holden’s or Ford’s websites, we will identify that there is a huge variety of products and each firm competes in that. However, the new market conditions stated before have greatly changed the way auto manufacturers think of the future and this in turn may change their pricing and competition policies, or even determine their existence in the market.

2.1- Analyzing the Import/Sales Sector

While the auto manufacturers are considered to be operating in an oligopolistic market structure, importing and selling vehicles or relative products is a different story. The import and sale of vehicles is the second and equally important business sector of the Australian Automotive Industry. There are many different car selling businesses and we shall only consider first-hand sales, as second-hand sales in general are not included in economics and more specifically in GDP measurements. To enter the industry hard at all as there are not many barriers to entry, however someone who is interested needs to consider of the high costs in setting up an automotive dealership. All businesses in this market are mostly based on product differentiation to compete and while prices are not “sticky”, pricing competition is set up by the market mechanism and tends not to be considered a regular phenomenon. Lastly, cost analysis and cost management play a very important role. All of the above characteristics refer to the Monopolistic Competition Market Structure. In this market structure we will focus on two phases, the short-run phase and the long-run phase, each with different competition characteristics and outcomes.

An important factor that we need to state here is that when the costs of developing a vehicle in the manufacturing sector rise, then the cost for selling the vehicle for a dealership may rise as well. This is always depended of course on if the vehicle was produced in Australia and if it was produced overseas, under what economic conditions was it produced. Price might be “sticky” for manufacturers, however prices will change much easier in this sector if needs be. Here firms will change their pricing policies if costs either rise or fall and this is always depended on the market mechanism. The amount of competitiveness along with the amount of price elasticity of demand will depend on how many rivals the monopolistic competitive firm will have to face.

In such market the following situation is very common, a situation that helps us distinct between short-run and long-run:

Stage One

In this stage the firm experiences economic profits. However, this fact will draw new firms in the market causing the profits to be competed away.

Stage Two

The economic losses indicated in this stage will cause many firms to exit the market, as they cannot keep selling under these market conditions.

Stage Three

In the final stage, the market clears-up, or reaches equilibrium point. As all firms that needed to exit the market have done so, the market mechanism comes to the point where no economic profits/losses are realized by the firms. This is the point where the market is most stable.

Studying the situation above we can identify one very important fact for any monopolistic competitive firm in the Australian Automotive Industry/ Sales sector. That is that in this market structure, in the long run, firms will realize only normal profits and the market mechanism will eventually reach an equilibrium point. Hence, in the long-run firms will compete mostly through product differentiation. However, in the short run firms may experience economic profits or losses and this is what causes firms to enter or exit the market and “shows” firms how to compete and when to apply pricing competition policies.

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