Microeconomics Essay Example | Topics and Well Written Essays - 500 words - 14

Microeconomics - Essay Example The fixed costs of the company include web hosting, maintenance of servers and other information technology, and payroll expenses to its writers. The company incurs in monthly marketing expenses in order to increase its web audience. Along with the writers the company has other labor overhead expenses it must pay to the administrators of the company. Due to the vast amount of users which ranks in the millions of monthly customer providing the service to one additional person does not cost the company anything. In order for marginal cost to manifest the company would have to evaluate an additional unit (person) in terms of clusters of tens of thousands of users. Utilizing such a metric would allow a cost to be determined based on the added cost of extra web hosting space. The website utilizes online advertising offerings such as web banners and web links. When you make a search for a topic at the bottom of the article a web search portal will appear at the bottom with different related words. This search engine option represents an advertising revenue stream for the company. The website is not over flooded with ads and the ones that placed are located to the right hand side, at top and at the bottom so that the ads do not interfere with the reading content. Entrepreneurs supply goods to the marketplace in order to make a profit from the sale of that good. They may also supply the good free of charge as promotional campaign in order to build brand value for the company. A good can supply a good in the marketplace in order to test the product. In the case of About.com which works provides information services their incentive to provide such a product is based on building a large online community pool which creates value for the company in terms of advertising revenue. The company can sell online ads in its website because the 57 million monthly unique visitors is a large crowd advertisers want to

Strategic Marketing Plan Case Study Example | Topics and Well Written Essays - 4750 words

Strategic Marketing Plan - Case Study Example From its humble beginnings in 1980, Applebee International, Inc. has risen to become the largest casual dining restaurant chain in the United States based on size, market share, and revenue. Applebee is founded by Bill and TJ Palmer with their first restaurant TJ Applebee's Rx for Edibles and Elixirs changing the name to Applebee's Neighborhood Grill and Bar in 1986. Two years later, franchisees Abe Gustin and John Hamra bought the rights to the Applebee's concept from W.T. Grace. With the pursuit of its growth strategy, Applebee International is established, growing into 54 restaurants in 1998 when it opened for franchising Today, Applebee operates 1, 900 casual dining restaurants all over the world operating with the commitment of providing "attractive, friendly, neighborhood establishment featuring moderately priced, high-quality food and beverage items, table service and a comfortable atmosphere that speaks to all ages" (Company Overview, 2007). Applebee's global operation is headquartered in Overland Park, Kansas. The United States is the company's largest market where develops and operates 1,841 restaurants within 49 states and one U.S. territory while it also has 89 restaurants in 16 international counties. Of the 1,900 restaurant chains in the world, 1,409 (74%) are franchised operated leaving only 521 (26%) restaurants in its sole management. Specializing in casual dining, Applebee restaurants offer lunch and dinner made up of entrees of beef, chicken, pork, seafood and pasta dishes, desserts and appetizers which the company changes from time to time in response to the patrons' tastes and preferences. (Fast fact, 2007). The price of an average meal is $11. Aside from providing dine-in services, it also introduces Carside To Go which allows customers to consume their orders outside the store premises. Recognizing the clamor for a healthier lifestyle, it has teamed up with Weight Watchers International in offering the Weight Watchers selections. Geographically, it has the small market segment in rural areas under 25,000 in population while cornering larger market segments in the cities. (Horovitz, 2003). Under the leadership of Lloyd L. Hill, who became chief executive officer in 1998, the company has posted positive net earnings, despite a fluctuating growth trend in total operating revenues in the past ten years (Hoovers, 2007). The company's operations are grouped into three business divisions: 1. Company restaurant sales which is comprised of the sales of food and beverages; 2. Franchise royalties and fees from its franchisees (franchise royalty are generally 4% of the franchise restaurant's monthly gross sales while franchise fees are typically