The competition that prevails would affect he running of business too.To elaborate, let us take an instance from the manufacturing industry especially the textile.
The yarn is spun from cotton. The quality matters the most. The warp and the weft yarn go to make up a cloth. The weft yarn could have defects and could fetch a price with the unevenness. The warp has to be perfect with no faults. The strength of the cloth depends on the quality of warp yarn. perfection is a must. To get a good yarn you have to purchase appropriate staple length of cotton suitable to the counts that you spin. Cotton with much trash content would not come out as good yarn. The process of cleaning the cotton has to be doubled then. This involves a strain a and the manufacturing cost would increase manifold.
The competitors would score off in the procurement of cotton. Here cash plays a significant role. With down payments, you could easily bargain and buy good quality cotton for a price.. If not cash and if you opt for long payments then the suppliers would compromise on quality. There goes the
quality down. Competiton supersedes and the profit margin decreases. You are bound to lose the rank and the efficiency also would remarkably deteriorate.
Considering all these inputs, one has to be careful and should possess a
liquidity to buy, manufacture and sell if he has to stay in this competitive world.
The yarn is spun from cotton. The quality matters the most. The warp and the weft yarn go to make up a cloth. The weft yarn could have defects and could fetch a price with the unevenness. The warp has to be perfect with no faults. The strength of the cloth depends on the quality of warp yarn. perfection is a must. To get a good yarn you have to purchase appropriate staple length of cotton suitable to the counts that you spin. Cotton with much trash content would not come out as good yarn. The process of cleaning the cotton has to be doubled then. This involves a strain a and the manufacturing cost would increase manifold.
The competitors would score off in the procurement of cotton. Here cash plays a significant role. With down payments, you could easily bargain and buy good quality cotton for a price.. If not cash and if you opt for long payments then the suppliers would compromise on quality. There goes the
quality down. Competiton supersedes and the profit margin decreases. You are bound to lose the rank and the efficiency also would remarkably deteriorate.
Considering all these inputs, one has to be careful and should possess a
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