BU 121 GEL Analysis

BU 121 GEL Analysis

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Unformatted text preview: to the costs. We want a high margin because this reduces risk of demand shiZs as we would not be required to fill the ship to make a profit. Up- Selling and Cross- Selling Our company will be able to promote a lot of cross- selling and up- selling. We have a wide variety of different room types that can all be used to up- sell those who chose cheaper room types; and we can use our excursions to cross- sell those who opt only to buy a room. Considering we have a high sales rate and a great chance of returning customers, up- selling and cross- selling are not necessary to maintain our business but are important for obvious increases in revenue. Ongoing Product Costs Our company provides a resort to customers and so the market is not changing frequently and does not interfere with other products, thus our service will not be updated frequently. The only ongoing costs of our service would be change and replacement of broken furniture and cutlery which will be very minimal. Investment To Enter Business Required Our company has a fairly high investment to enter the business but this is not a problem as cruises and resorts have both been known to generate a high level of profit. Also, our business life cycle is very gr...
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This document was uploaded on 03/13/2014 for the course BUS 121 at Waterloo.

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