Matthew De Point
December 2, 2013
Sandia Laboratory Federal Credit Union (SLFCU) is a financial institution that helps the community by providing many different types of banking products and services. A business plan is needed in order to create more revenue for the company. By providing a plan on how to increase revenue, the company will be able to better compete against in the market. Sandia Laboratory Federal Credit Union is an oligopoly. The goods and services provided by the company are assisting customers and other businesses in their time of financial needs. There are many other financial institutions that function the same way in the market, and also in the community. The elasticity for Sandia Laboratory Federal Credit Union is the fact that it has the ability to provide the financial backing for customers striving to grow and succeed, from interest in deposits, to loans for many needs.
Since there are many other types of financial institutions that provide the same products and services to customers, and potential customers; Sandia Laboratory Federal Credit Union needs to look for ways to get the word out that specific people are able to bank there. The focus for setting a barrier in this type of market is to be able to advertise and allow people to know that they qualify in banking there, and also that as a credit union, there is every product they need, and not just saving needs. The customer service that the employees give to all the customers is another way to distance the company from its competitors, since word-of-mouth is the fastest way people communicate today.
Market structure for an oligopoly is when there are several larger companies that have some control over their prices. Since entering the market for a financial institution is not easy and simple, this allows for those in...