๐ฐ Capitalistic Model
The capitalist economic model relies on free market conditions to drive innovation and wealth creation and regulate corporate behaviour
Commercial business has only one intention
- To make profit
In capitalistic economic model, there are no trade barriers.
- Healthy competition benefits all
- The given customer base will sustain a fixed number of suppliers
- Surplus/unsuccessful businesses will close
Every business needs to grow to sustain and grow
- Growth is in terms of
- Revenue, sales, market share
- Real estate assets, sites
- Growth is essential to counter inflation
Every business goes through a life cycle
- Every business needs to regenerate to prevent closure
Finite resources and customers dictate constant renewal of gaining profit.
- Increased cists for manufacturing and increased competition through substitutes.