• This is a political forum that is non-biased/non-partisan and treats every persons position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

financial documents?

ashiol

New member
Joined
Jul 9, 2013
Messages
11
Reaction score
2
Gender
Female
Political Leaning
Liberal
Guys..
i want to know one thing In Business Studies why do competitors want to see their opponent's financial documents?
share with me
 

imagep

Villiage Idiot
DP Veteran
Joined
May 7, 2010
Messages
24,399
Reaction score
10,426
Location
Upstate SC
Gender
Male
Political Leaning
Independent
Guys..
i want to know one thing In Business Studies why do competitors want to see their opponent's financial documents?
share with me
Once a year, a trade publication does a survey of companies within my industry. Thats the only edition that I usually read cover to cover, because it provides me insight into trends in the industry, which I may or may not otherwise recognize.

By looking at these numbers, I can compare the direction that I am moving in, to the direction of the overall industry. During the past few years, my industry has been migrating to more digital printing and less offset printing. Until recently, I have pretty much been ignoring the digital printing part of my industry, and moving in other directions to replace my decline in sales of offset printing. However, I have been monitoring digital closely, and just recently decided to take the plunge into it. The reason why I didn't do it before, is because I didn't have customers specifically requesting digital. The reason that I went ahead and invested in more digital equipment was because by studying the movement of my competitors, I realized that I may be missing out on the fastest growing segment of my industry. In the matter of less than a month, I have increase my sales, by more than I expected, by installing more digital equipment, and with only a scant tad of advertising.

But it is also interesting to be able to compare my numbers, with that of other similar companies. things like cost of goods, sales increases/decreases, labor costs, advertising expenditures, etc. by making those comparisons, I can find inefficiencies in my own company, and also exploit any voids or vacuums in my local market. Knowledge is power these days.

Somehow I get the feeling that I just answered a discussion question in the online class that you are taking.
 
Top Bottom