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e) Evaluate these two options and recommend which one is more likely to improve Bon Bon's profitability - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Question 1
e) Evaluate these two options and recommend which one is more likely to improve Bon Bon's profitability. The business-to-business (B2B) sector is where a company se... show full transcript
Worked Solution & Example Answer:e) Evaluate these two options and recommend which one is more likely to improve Bon Bon's profitability - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
Option 1: Business to Business (B2B)
Answer
In this model, Bon Bon's leverages existing relationships with retailers, enabling bulk purchases that can reduce costs. This option promises improved profitability through economies of scale and a robust distribution framework. Further, efforts for reliability in delivery can bolster Bon Bon's reputation, stimulating demand from more retailers.
Step 2
Option 2: Business to Consumer (B2C)
Answer
Here, Bon Bon's would directly target consumers by establishing retail outlets. While this might allow greater profit margins due to fewer intermediaries, it also involves significant upfront investment and brand promotion. The transition may disrupt existing operations, especially if not executed effectively.
Step 3