Tycoon Online Usa

In: Business and Management

Submitted By ajfon
Words 280
Pages 2
Tycoon online USA project

At the beginning of this project we started with a forest to get wood, because in that time the wood and manufactured products based on wood was on the higher price of the market, also the invest was smaller than other industries.
So we invest less and win more in the wood industry. From here we use the strategy of forward related diversification, this consist in become in our own customers buying us our own product to transform them into processed matter like planks, furniture, paper, newspapers. In this process we increase the price of our product from $15 to $130, and after we construct furniture shop the price increase to $215.
The profits at this point allow us to invest in offices like auto repair shop, clinics and paint shops to get more money.
At that point, the next thing we did was to increase the value of the company, in order to do that we buy shares in the market of other companies that were increasing in value to receive cash from dividends.

The first problem that the company face was the fall of prices of wood-based products, because the market was saturated; so we start a new strategy known as nonrelated diversification this consist in invest in other business. So we invest in other products like clothes because in this moment this product has the best price on the market, now we also sell bread, sausages, and newspapers.

For manufacture the products mention before we buy the raw material from the market because it is cheaper than produce it, so we just build factories to process and sell the new…...

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