Should I build another factory in this situation?

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bycomet
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Should I build another factory in this situation?

Post by bycomet »

I've got 100% market share of body lotion. No competitors. Supply is far lower than demand.
Don't know how it happens because 100% market share should mean every demand is fulfilled.
If I build another factory to increase supply, can those additional products be sold? This means I'll get more than 100% market share?
Or should I increase price to lower demand to match current supply? Then will I lose some market share and leave it to potential competitors?
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Stre3trat
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Re: Should I build another factory in this situation?

Post by Stre3trat »

I know that pricing does effect that balance but I'm not sure wit the 100% ownership. Instead of building another factory it wouldnt hurt too change price and see.
Karons
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Re: Should I build another factory in this situation?

Post by Karons »

Supply continues to exceed demand because a single factory is connected to too many retail stores.

This means that your retail stores are unable to purchase enough products or build up inventory.

On the other hand, it also means you can maintain a 100% market share even if some of your retail stores are unable to make sales because they cannot obtain stock.

Check the inventory levels at your retail stores.

Some stores are unable to sell products because they are not receiving enough inventory.

In other words, you are continuing to pay maintenance costs for retail stores that are not generating any sales.
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