Industry Type: Domestic Services
Name of the company: Mega Amazing Indonesian Domestics (M.A.I.D)
Services: Maid Agency
Firm Description: M.A.I.D provides the most efficient domestic helpers available in today’s society. Our professional domestic assistants will be able to cater to your every need. Based on the principles of honesty, respect and loyalty, M.A.I.D strives to achieve a better world, today. M.A.I.D recruits young women from disadvantaged origins and trains them to become experts in the field of domestic assistance, by using our services, you give them a chance to a better life. Help us, help you.
What is allocative efficiency? It is the socially optimum level of output. Allocative efficiency takes place when the suppliers produce the optimum variety of goods and services demanded by the consumers.
What is productive efficiency? Productive efficiency is when the firms produces a product at the lowest possible cost and is when the output is at its most efficient level.
When there are barriers to entry, it is difficult for firms to enter or exit the industry. In order to keep out new competition your firm may want to erect barriers to entry. What kinds of barriers to entry are you going to erect to your firm, how do you go about doing it?
In order to maintain an economic advantage we plan on being entirely superior to competitive firms, by providing cheaper services, having more advertising and by expanding through acquisition of smaller firms in the same industry.
Using economies of scale is also a form of barriers to entry, which types of economies of scale will your firm be trying to reap from?
By recruiting and training young women from disadvantaged backgrounds, we cut back on our production costs, thus benefiting from financial economies of scale.
What kind of price or non-price competition will your firm engage in?
Our firm will use non-price competition by becoming unrivaled in terms of quality, using our training services our domestic assistants will be far better equipped with the skills they need to become the ideal housekeeper. This gives us the competitive edge over other firms which do not have such comprehensive training programs.
Are you going to practice price discrimination to gain more revenue?
In the market of domestic assistance it would be impossible for us to take price discrimination into practice. As a result, we will have to rely on our strength in non-price competition.
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