Analysis Of The North American Market Richardson

Analysis Of The North American Market Richardson

In the North American market Richardson's has a strength in dominating particular regions such as Kansas, Texas and Oklahoma where they receive 75% of their companies sales. This allows them to have lower shipping costs and possibly lower advertising costs in the areas because they have regular customers who are returning to buy items because Richardson's strong brand equity can bring trust and low searching costs. Having most of their sales in a particular region is also a disadvantage for the company because if something were to happen in that region that slowed down income for the farmers in the area (drought or disaster) Richardson's sales would be in trouble. This is because the company relies on a particular region for sales and the company is not well diversified within other regions of the United States, which creates risk within such a specific market. Richardson Manufacturing has seen a cumulative increase in net sales of 11% (Sheet 1, L4) within the domestic market which is great because it shows their sales have increased over the past 4 years. At the same time, there is a lot of volatility in the net sales as the growth percentage goes fro 2% to 19% and eventually back to only 7% growth. This lack of consistent growth may mean a market that is changing or relying too much on external factors and so Richardson's team should be aware of the variability. The cumulative net profit increase of about 50% (Sheet 1, cell L18) shows that Richardson's net profit on

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