Example of essay on sponge wars

There are different factors in the market that are responsible for the different market shifts that happen in the market. These factors are responsible for the shifts in the position of the equilibrium price in the market. The demand of the product relies heavily on several issues that are present in the market. The availability of alternate items that are referred to as substitute items determine the slope the demand curve will take. The demand of a certain product will be heavily relying on the capacity of the market, as well. In order for a company to increase the demand of its products in a certain market, there are several steps the company undertakes to make sure the people are aware of the product and that it pleases them. The production of products by a company depends on several factors that decide how the product can be modified. For instance, in the article, scrubber companies were making their products according to the demands of the people. The resulting effect meant that the companies tried to make scrubbers that were not wearing out the utensils that they were supposed to clean. Customer preferences are always kept first hand in the production of products, in the market.
In the market for sponges, there are different companies that have indulged in this market. Most companies avoid this sector of the market citing lack of a strong customer base. However, 3M Company together with Scrub Daddy thought otherwise and took the huge step of venturing into this market and there have been different results that the two companies have obtained. The main goal of these two companies is the provision of scrubbers that will fit the demands of the customers. Most of the customers are always concerned with the level of cleanliness that is left when one uses the scrubber. The level of cleanliness is analyzed both in the utensils and also in the scrubber after washing the utensils. In most scrubbers, a lot of bacteria are left in the scrubbers and this is always a major health concern to the customers who use the said sponges.
There have been sponge wars between the two big companies in trying to remodel the market so that it suits them all. This has involved different strategies with the bigger company 3M making organic sponges for green families in an effort to make an impact to all families. The organic sponges are produced amidst other sponges. The Scrub Daddy Company on the other hand has been using the synthetic sponges that do not leave marks on the utensils. The two companies have been in fierce competition and this has helped the growth of the two companies as well as the improvement of the quality of the sponges that are produced by the two companies. The different improvements that have been made to the two products have been vital in the increase of the demand of the sponges in the previous year. The demand of these scrubbers is depended on the individual changes that each company makes to its own products. These changes are as a result of the market forces which push the companies to be innovative so as to attract the best market.
The demand that is made from the customers is mainly depended on the level of satisfaction that is brought to the customers after they make purchases of the scrubbers. The competition that arises from the marketing strategies developed by the two companies brings out different groups of customers depending on the qualities that satisfy each customer best. Since both companies made independent improvements to their products, the level of demand for the two products will increase by a somehow equal rate. This is because the indifference that is present in the market will remain and the market will still be lost for choice due to the equal improvements that are made by the two big companies. In order to make one product in more demand than the other, there will be need for improved marketing strategies such as increased advertisements as well as increasing the sale and distribution points to capitalize on the market power.
In an article written by James Hagerty, the demand for 3M scrubbers rose due to the method that the owner company of the product used in the advertisement of the product. Advertisement is a method that is used by companies in the creation of demand in the market. Advertisement creates awareness in the market and thus the sales of the advertised product become easy. The advertisement should be made in a way that addresses the needs of the buying population. The Scrub Daddy Company also improved the quality of their product. The combined demand curve will be a representation of the demand curve below named ‘ demand’. The aggregate demand curve is arrived at as the sale of both types of products is analyzed and found to have increased uniformly. The shift of the demand curve can be explained by a simple graph below from ‘ demand’ to ‘ demand 2′. A shift in the demand curve is caused by an increase in demand of the product that is in the market.
The supply of the product is heavily depended on the ability of the market to purchase it and how much of the product the market requires. As given in the article, a company can only produce how much the people need. The production is done this way so as to avoid extras that will be expenses to the producing company. The supply curve will only shift if at all the demand of the product increases. The increase of the quantity of a product forces a firm to increase its production abilities and the equilibrium level is raised to another level. The equilibrium price shifts only in the long term. The aggregate original demand curve is represented by the curve ‘ supply’ while the new curve is represented by the new curve ‘ supply 2.’
In conclusion, the different products like the scrubber that are produced follow different market forces and most of the decisions made in the producing firms are made about the different forces that are present in the market. For a company to maximize its revenue, there are certain things that the company must do. These are done so as to help the company make the best use of available resources such as the market power. Different companies have different abilities in navigating through the market forces. What remains is the management of a particular company to establish what changes it can make so as to capitalize on the available resources available. The management should be also in a position to identify different forces that are in the market and how to respond to the market forces.