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Profitability factors and strategies for the Case Company X operating online business in the Finnish market

Pan, Yao (2013)

 
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Pan, Yao
HAAGA-HELIA ammattikorkeakoulu
2013
Creative Commons License
Creative Commons Attribution-NonCommercial-ShareAlike 1.0 Finland
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013102916427
Tiivistelmä
Enterprises intend to gain profits and achieve sustainable growth from their business activities, but the reality interferes due to some financial factors and risks.

The main purpose of this study is to help the case company X to operate successfully and gain profits in the Finnish market. The study analyzes the financial factors that have influences on the achievement of the company’s business profitability.

Based on the company’s wishes, the research objectives are demarcated to four research aspects. They are: an overview of the Finnish taxation system, an estimate of online business operating expenses, a particular method of effective inventory management and appropriate strategies for gaining profits.

The thesis is based on the qualitative research methods and focuses on comprehensive secondary data analysis. Information and figures are gathered from diverse academic publications and Internet sources.

The results show that, firstly, an overview of the target market taxation system helps the case company, determine the right form, making desirable sales margin and reasonable product price. Secondly, an economic budget in operating expenses and effective inventory control can assist the company to advance sustainable management in the Finnish market. Thirdly, cost leadership and differentiation strategy are two suitable means to support the company to create cost effective opportunities, to build competi-tive advantages and to increase sales shares. Finally, the company can reach profitability optimization by means of various pricing strategies applied to different customers.
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