Business Proposal

Business Proposal: Option One

ECO/561 Economics

In 2012, the East Coast was impaled by a notorious super storm that battered and destroyed homes and lives. Super storm Sandy knocked out power for days and even months for thousands of residents in the northeast of the United States. With no power, people were and are still living in unsafe and unsanitary conditions. With no power, people did not have safe drinking water, food, shelter, warmth, or even a roof over their heads.

PreppingforanEmergency.com is a multi-brand internet based company that sells emergency products to the public. These emergency products help the consumer to be prepared for any type of situation that may arise such as natural disaster (hurricanes, tornados, and even floods), man-made disaster (nuclear, or an economic collapse), or just to be prepared. Products range from survival backpack kits, first aid kits, water supplies and filtration, food supplies, pet supply kits, flashlights, candles, whistles, matches, and numerous other items that are used in emergencies and emergency situations.

Elasticity of Demand and Market Structure

The demand for emergency preparedness is very elastic; this is due to other brands that are on the market selling the same type of items in the same fashion. Many companies that are in the same industry are launching their website and online stores almost daily, make for a competitive monopolistic market. McConnell, Brue, and Flynn states, “A market structure in which many firms sell a differentiated product, into which entry is relatively easy, in which the firm has some control over its product price, and in which there is considerable nonprice competition.” With this type of industry, many of the products are available to consumers who could possibly think that the products are different but they are in fact similar or possibly the same. This perception is the key to success in a monopolistic industry because it is product...