How EF can increase their profit?
Firstly,EF can increase their sales revenue.By that way,if the cost will be the same so the profit will increase.Therefore,EF can make or encourage people to come to learn.So there will be more customers for EF.There are quite many ways of attracting people to come to learn.Because EF is a global English learning system so advertising is quite important.Otherwise,other language learning schools will have opportunity to compete with EF.EF can advertise on the TV,and because EF is well known and in my opinion, it has a big benefit from finance,so the cost of advertising is not a big deal for EF.Or EF can advertise straight to people like providing and supplying school bags,pens,stationery stuffs with their brand name in it.And also they can add some interesting phrases in it to attract people to buy.
But the most important factor to consider about,especially in the period of the credict crunch is lower their PRICES PRICES PRICES.(especially fo books:D).Considering thi stationery stuffs,the main aim for supplying i could be just advertising.So it can provide those stuffs with low prices but high quality.
Or EF can create some activities and more facilities directly in schools.Some schools such as in Oxford they have machines for drinks already.So it will be beneficial if there will be game machines but you have to pay for it.Some game addicted people,demand for it will be inelastic....And I know in EF there are some:D
Also EF can reduce its cost.Reducing cost is easy,for example buy lower price facilities,such as EF Oxford billiard:D.It was broken for a short period of time,so maybe because it has a low quality and low price as well.
Anyway,the best way of increasing EF’s profict,is lower the price in everything...books,learning fees..Everything,then I will love EF so much:)))<3<3<3
Diseconomies of scale
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Diseconomies of scale occur when a business grows so large that the costs
per unit increase. As output rises, it is not inevitable that unit costs
will fa...
7 years ago
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