Heather Crawford's Blog

In business, markets push to meet customers’ wants due to the expectations of the buyers.  For example, car companies always have standard features in their cars because customers expect to have a basic level of safety features and standard levels of performance.  These expectations vary depending on both national safety regulations and incomes of the desired market.  For instance, a Tata Nano sold in Indian is focused on providing an inexpensive compact vehicle for low-income families, which as a result doesn’t have air conditioning and other features that most Canadians would think to be basic features when purchasing a car.  Another point to think about is if standards are not regulated, competition in areas can be drastically changed even by the influence of a signal competitor. For example, if Ryan Air increases the amenities that they charge for passengers then other airlines may also want to cash-in on charging for the basics, while still charging their high flight fees that Ryan Air doesn’t. The question therefore has to be asked, what boundaries can be pushed in the market in the business world?  How far is too far?