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The stakeholders of the business or a company can be defined as any party or a person that has an affiliation to the company. Simply, they can be described as those people or parties that affect or are affected by the company (Haslam, Neale & Johal, 2000). The product market can be described as the place where the product of the company is placed for customers to know whether they want to buy the product or not. In this market, a company’s product has to pass through many stages from it’s initiation in the market to its exit (Sergi, Bagatelas & Kubicova, 2007). In this case, the stakeholders’ claims have a connection with product market since they can influence the company’s decisions.
In order to learn this, the best example to use is the British Airways. Over the years, British Airways has been successful in becoming a global icon in the transport industry. However, in the recent past, they have been making losses, which could lead the company to closure. Additionally, British Airways can be used as a good example because their products are in the market and have passed all stages of a product life cycle. Therefore, using British Airways as an example it will be easy to understand how the stakeholders’ claims connect with the product market (Hatch, & Schultz, 2001).
The first stakeholder to be discussed is the management of the company. In the past, the management of the British Airways has been making strategic decisions pertaining to the company’s product. For instance, they initiated products like the business class which saw the company gaining clients and a status quo. However, the business world changed and the consumers started to become more economical thus using other more competitive airlines (Carpenter, Bauer, & Erdogan, 2011). At this stage, the business class product had passed all the stages, and it was on the last stage known as the decline stage. The product depreciated in value since the management of the company did not make a strategic decision in the maturity stage. The company therefore could not increase the number of customers consuming their product. In this case, the management claims of not making strategic decisions did not save the product from entering the last stage of decision product life cycle.
The other type and the most important stakeholders of the company are the shareholders. They are the most influential stakeholders in the company since they have offered their contribution to the company. However, the problem is in their inability to make timely decisions for the company thus affecting the products. For instance, British Airways is currently making losses due to loss of customers. This is because the shareholders are afraid of taking risks like the other companies have been doing. They could have made a decision in the maturity stage by reducing their prices and offering their customers incentives so that they can move extensively in the product life cycle. As a result, they have lost their customers to the market. This clearly shows that the shareholders have a connection with the product market.
Employees of British Airways are the other stakeholders of the company that have a connection with the product market. For many years, the employees of British Airways have been on the forefront of selling the airline’s products. Many customers have rated the employees to have commendable services. As a result, they have attracted more customers to the company increasing the products life in the market. However, their high package pay has resulted in bringing down the products from the market. This is because their salaries have led to the increase in the prices of the products leading to the loss of the customers to other airlines.
The other stakeholders who could be discussed are the customers of the company. These are the people who come in direct contact with the products. In British airways, they are the people who purchase the different airline tickets for the business class or the economy class. The customers usually consider many factors while purchasing a product. For example, they consider the price and the quality of the product. In the past, the customers were using British Airways because of the high class, but recently they have been using other airlines that are cheaper because they want to save. This results them in affecting the products of British Airways in the market.
Other stakeholders having a connection with the product market are the competitors. They usually decide whether the product lifecycle of a product will be shortened or extended depending on the different strategic decisions they make. In the case of British Airways, the competitors offered the customers good products with incentives at cheaper prices as compared to British Airways. This has led to the shortening of British Airways product life cycle (Haslam, Neale & Johal, 2000).
It can be clearly seen that the stakeholders of a company have a connection with the company’s product market. They can either affect the product market positively or negatively. If they affect the product positively, the product life cycle of the product will be extended. On the other hand, if they affect the product life cycle negatively it will be shortened. Therefore, depending on the kind of effect the stakeholders make, it is true to say that, their claims have a strong connection with the product life cycle.