The cheaper touchscreen, assuming that all other factors remain constant, would, initially, shift supply because the consumer dictates the demand. Cheaper production costs could lead to an increased number of Kindle Fire HDXs produced but as the CEO, I must determine whether or not my current production force is at capacity or not. Assuming that I am able to produce more units without hiring more workers, my asking price could decrease substantially and, since my production costs decrease substantially I am able to produce more units without increasing the overall cost to the company. (Impact of Shifts in Demand and Supply, 2006)
Lowering the asking price could increase demand because it would open up a consumer market that, previously, couldn’t
Now a days we can see everyone whether a businessman or an auto driver, Rich or poor everyone has a smart phone in their hands. In today’s world where time is the most precious thing these smart phones help us to save our time. These smart phones are necessary evils. Now the question is why these phones are called Smart Phones. The reason behind this is these phones have some special software in them called an App Store. Now the question arises “What is app store? How it works? What are its uses?”
The law of demand tells us that "Quantity demanded rises as price falls, other things constant, or alternatively, quantity demanded falls as price rises, other things constant (McGraw 2004). The XBOX 360 phenomenon that took place in 2005 is a good example of this economic principle at work. Microsoft's XBOX 360 gaming console was released into the U.S. market on November 22nd 2005. The release came after a great deal of advertising and media hype that ensured that the demand for the product would outweigh the supply. Quite simply, there were more consumers wanting to purchase the product than there was product available. The retail price for the gaming system with a hard drive was $399. Many consumers, however, paid a great deal more than the $399 sticker price to acquire the system. On the morning of the U.S. release, retailers across the nation sold out of the product within just a few hours of opening their doors to consumers. In the weeks that followed however, many consumers purchased the unit from sellers on on-line auction sites and even from individuals in parking lots for as much as $1500. The reason for this was that the supply was significantly less than the demand for the product. In some cases, parents who wanted to ensure that their children received and XBOX 360 for Christmas in 2005 were willing to pay well over retail for the hard-to-acquire system. In other cases, video gaming enthusiasts wanted to be among the first individuals to own and play the system. News reports across the nation showed footage of people lining up days ahead of November 22nd in order to secure a place in line at retailers that would have the product available on the release date.
PACE represented Amazon. For our business profile project, we focused on Amazon. Amazon.com Inc. was founded by Jeff Bezos in 1994. Amazon was first started in Bezos' garage and has turned into a billion dollar operation over the course of 22 years (Smith). Amazon is currently headquartered in Seattle, Washington and has branch locations all over the world.
In the article “Inside Amazon: Wrestling Ideas in a Bruising Workplace” by Jodi Kantor and David Streitfeld, both authors noted Amazon’s business and work strategy as harsh and strict but rewarding and life-changing at the same time. Apparently, Amazon’s business model focuses on harsh and strict regulations to keep employees more motivated, productive, and innovative. In comparison to other companies who values benefits and positive reinforcement for their workers, Amazon values constant productivity for improvement and growth and compensation as a competitive aspect in workplace. Many people may see this business strategy and the company as harsh and a horrifying experience; however, I believe and agree that this strategy
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...nt were to put up interest rates, our consumers will be less likely to spend. Therefore we could change our pricing strategy for a short period of time so that consumers feel that they will not be able to get this ‘bargain’ again therefore they will buy. We could use promotional pricing, which is lowering our prices for a short term to increase sales and gain market share.
Tommy Jones begged, pleaded, and hoped beyond hope for that new touch screen phone that would immediately move him up the social ranks at his school. His wish was granted on Christmas morning. He was rewarded with that sleek, black phone with 4G capabilities. Two months later the next phone in that series is out, an exact clone of the orginal with the most moderate changes, and suddenly Tommy’s phone is obsolete. There was no great improvement when compared to the old model, no; the corporation knows that it will sell, no matter how small the improvement. This model of constant obsolescence has become the norm in the economy today; companies reap profits with mediocre products, completely uncaring of the consumers. To put the economy back in the hands of the consumers, a system of deregulation must be enacted to allow the marketplace to be run once again by consumer interest.
Amazon.com, Inc Company started in 1994 and featured online in 1995. The company has done extremely well in the market achieving remarkable success. Initially, Amazon was known as Cadabra. Inc. however, the name of the company changes when the owners of the company knew that people confused the name for cadaver. Jeff Bezos is credited for founding the company. The company has its base in the United States of America as a multinational e-commerce company. Its headquarters are in Seattle, Washington. It has been rated as the largest online retailing company, in the entire world. It has close to three times the sales revenue that staples, Inc made as a runner up, in January 2010 (Shire, 2008).
increase in a price of a good will subsequently lead to a fall in the
Eule, A. (2013). It’s time for Amazon to open its black box. Barron’s, 93(42), 37.
Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011). There are three determinants which can be used in the competitive advantage that what the company produce for their consumers, their target market that what they have to achieved and the competition from the other entity
below, if firm X decides to lower its price from B to D, sales should
As some of you may know, Amazon has recently become a client of Deloitte. Amazon is a company that sells merchandise, produce and other goods through Amazon.com. They have also expanded into the same day delivery industry through its new venture, Amazon Prime. Recently, Amazon has been looking to focus more on growing its business outside of the United States. In order to do this, Amazon needs to increase profitability in North America. Thus, they have requested our team’s recommendations on how they can increase sales from online shoppers within the next 12 months.
The world market for tablet computers is expanding rapidly. According to Gartner, “end users reached 195.4 million units in 2013, a 68 percent increase compared to 2012” (Gartner, 2014). Apple Inc. was the first mover within the tablet pc industry and therefore had an instant competitive advantage within the tablet industry. In April 2010, Apple first iPad became an instant success and sold 3.27 million iPads within the first three months (Statista, 2012). According to Steve Jobs, “the iPad is Apple’s most advanced technology in a magical and revolutionary device at an unbelievable price” (Apple Inc, 2014). Before Apple’s rivals could develop a tablet PC, Apple released the improved iPad 2 in March 2011. So far the tech giant has released 7 iPad versions, including the newest, very successful versions iPad Air and iPad Mini with Retina display. The fast cycle consumer electronics market is defined by disruptive technologies and first mover advantages. After having such a successful start within the tablet PC industry, Apple is rather focusing on product up- dates and improvements than focusing on complete new innovations.
...n the companies will have to decrease the price otherwise the product will not be sold at higher prices and the revenue would not be as large as companies would like to.