Are you an extensive traveller? Do you love music? Then your answer is a MP3 Player, a device that allows you to listen to your favorite music on the go. There is nothing like putting on the head set, laying back and listening to some refreshing music when you are exhausted. This is when a MP3 player comes in handy.
MP3 players have dominated the market in a huge way and companies would be ready to pay a handsome amount for some off the basket innovation that would lead their company all the way the top. Any company producing MP3 players faces one of the tightest competitions in the market.
MONOPOLISTIC COMPETITION
In a monopolistic competitive market the product of different sellers are discerned on the basis of brands. Here the product differentiation given rise to an element of monopoly to the producer over the competing product. As such the producer of the competing brand could increase the price of the product knowingly well that the brand loyal customers are not going to leave them. This is possible as here the products have no effective substitutes. How ever since all the brands are of close substitutes to one another the seller would lose some of their customers to these competitors. In the past many companies have faced the trouble of having a bag full of customers and due to close-fitting .competitors they end up only having a few. Most entrepreneurs fell that fronting their competitors is the toughest part of running a business in a monopoly market. Thus the monopolistic competitive market is a mixture projecting out both monopoly and perfect competition.
MP3 PLAYERS AN EXAMPLE FOR MONOPOLISTIC COMPETITION
An mp3 player is a type of digital audio players that falls under the broader category of pmp devices. It i...
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...ily journey.as of these reasons mp3 player have become part of life. Apple has dominated the market in all aspects and will continue to do so until it encounters the tight competition.
BIBLIOGRAPHY
1. Kraemer, K.L.; Derick, J. (2002).Strategic Use of the Internet and E-commerce:
Cisco Systems. Journal of Strategic Information Systems, pp. 11, 5-29.
2. Begg, David. (2002). Economics seventh edition:
Monopolistic competition, pp. 9,123-124
3. Maccormack, A.;Verhanti, R.; Iansiti, M. (2001). Developing Products on
“Internet Time”: The Anatomy of a Flexible Development Process. Management
Science, 47, 1, 133-150.
4. Hamel, G.; Prahalad, C.K. (1994).Competing for the future .Boston: Harvard
Business School Press.
5. Howard Bill (2009); iPod competition available at http://www.pcmag.com;
Accessed on 1.12.2010.
An oligopoly is defined as "a market structure in which only a few sellers offer similar or identical products" (Gans, King and Mankiw 1999, pp.-334). Since there are only a few sellers, the actions of any one firm in an oligopolistic market can have a large impact on the profits of all the other firms. Due to this, all the firms in an oligopolistic market are interdependent on one another. This relationship between the few sellers is what differentiates oligopolies from perfect competition and monopolies. Although firms in oligopolies have competitors, they do not face so much competition that they are price takers (as in perfect competition). Hence, they retain substantial control over the price they charge for their goods (characteristic of monopolies).
The audience of the Quick Start Guide (QSG) is going to be composed of men and women who have purchased the mp3 player or received it as a gift. The owners of an MP10 mp3 player may or may not have experience using an mp3 player, and even if they do, the experience may not be with this exact model. One way the designers of the QSG allow for a wider audience is by providing a Spanish alternative to the English side. The reader of this guide needs thorough instructions and diagrams in order to begin operating the MP10 as quickly as possible. For this reason, the instructions are laid out in numerical order to introduce the user to the different features and options that are available. These instructions correlate with diagrams of the MP10. Callout boxes point out the buttons and their functions to allow the user of the QSG to use as much or as little of the guide as they desire. One can assume that because of varying levels of technological knowledge, a user of the guide would want to be informed on all of the capabilities the MP10 possesses. The reader may ask a question like; What is possible with this expensive mp3 player? In turn, the designers of the QSG have to display the functions of the MP10 without turning the guide into a complete owner’s manual. The user of the guide wants to use a feature of the MP10 as quick as possible, and probably doesn’t want to read that much in order to do so. Therefore, the readers’ design preferences include solid diagrams, distinct headings, and comprehensive directions without being overly long.
MP3 is a relatively new form of piracy, only being around for about ten years. The fact that the MP3 format takes up as little as one megabyte for a one minute clip, makes it an attractive storage factor for pirates. And with the CD-R and CD-RW drives, people can convert MP3 files to common CD format, burn to a CD, and play in any CD player, and be listening to a mix of their favorite songs within a half hour of downloading the song. With MP3 players becoming more and more popular options in cars, you can burn MP3 files directly to a CD without converting to a standard audio file and have over six hours of music on a single CD!
Apple’s rise to popularity is no longer a question these days. If someone hasn’t seen or touched an iPhone some would throw that he lives in the Stone Age.
A major breakthrough in the way people listen to music occurred in the early 1980s when Sony introduced its compact audio disc. There was an outstanding advantage of this new digital audio format, and it has forever changed the way we listen to music—music was now portable. An analogy that compares digital to the older analog format is that it’s like claiming cars are better than trains: they both get you where you need to go, but one is just more popular than the other. As the same article also quotes, “Digital offers greater flexibility than analog and that is really the secret of its success” (Analogue run out of town by digital). Unless you’re the type of person who needs a tangible experience, with your music, you’ll go with digital, and this is how most people are. FBi Radio’s Marty Doyle explains, “A lot of people don’t care what format their music takes on as long as it’s convenient…” (Christopher).
MP3 stands for MPEG 1 Layer 3 Audio, which is a digital audio compression format developed by the Moving Picture Experts Group. It takes a CD audio file and gets rid of all the frequencies on the song that can’t be heard by the human ear, thus ridding the data file of much wasted space. With compression, the files turn out to be around four times smaller than the original with the same, near CD quality audio. While “MP3“ may technically be the name of the compression format, it has become synonymous with the music files themselves.
The Cowon V5 32 GB MP3 Player (Black) is superb when it comes to performance. One single charge ensures the mp3 player to be working for 45 hours straight. Well the 45 hours stamina is in audio mode. If you switch over to video mode the...
Firms with market power or monopolies are often seen as detrimental for customers and economic welfare. According to the neoclassical theory, the market power of monopolies and oligopolies is potentially higher than that of firms in monopolistic or perfect competition since they have to face very limited competition, if any (Ferguson and Ferguson 1994). In monopolistic or perfect competition can make supernormal profits in the short term but eventually other firms will enter the market and offer alternative products that reduce the demand for the established firm’s products (Sloman et al., 2013 p. 177). Dissimilarly, this is not the case for dominant firms or monopolies; the lack of competition allows them to set prices and make supernormal profits increasing the perception that big companies are “bad” for consumers. As shown by the graphs in Figure 1 and 2, there are substantial differences in the competitive and monopoly markets. In a competitive environment, the equilibrium is reached where demand meets supply. In a monopolistic market, thanks to the establishment of higher prices and the production of lower quantities, monopolies or dominant firms make supernormal profits; additionally, there is a deadweight loss and some consumers who were willing to pay lower prices wil...
Perfect and monopolistic competition markets both share elasticity of demand in the long run. In both markets the consumer is aware of the price, if the price was to increase the demand for the product would decrease resulting in suppliers being unable to make a profit in the long run. Lastly, both markets are composed of firms seeking to maximise their profits. Profit maximization occurs when a firm produces goods to a high level so that the marginal cost of the production equates its marginal
The Perceived Demand Curve for a Perfect Competitor and Monopolist (Principle of Microeconomics, 2016). A perfectly competitive firm (a) has multiple firms competing against it, making the same product. Therefore the market sets the equilibrium price and the firm must accept it. The firm can produce as many products as it can afford to at the equilibrium price. However, a monopolist firm (b) can either cut or raise production to influence the price of their products or service. Therefore, giving it the ability to make substantial products at the cost of the consumers. However, not all monopolies are bad and some are even supported by the
Sony Music should have been better engaged to allow this division’s management to properly voice their concerns over the piracy of their content. If there had been a taskforce, as mentioned above, developers for the two music devices could have worked with Sony Music to adjust their products to meet the piracy concerns. Maybe then either team could have produced a product that not only did not have sizeable technical drawbacks, but was innovative enough to capture the attention of the marketplace.
In a perfectly competitive market, the goods are perfect substitutes. There are a large number of buyers and sellers, and each seller has a relatively small market share. Perfect competition has no barriers to information regarding prices and goods, meaning there is no risk-taking behaviour – sellers and buyers are rational. There is also a lack of barriers for entry and exit.
A monopoly is “a single firm in control of both industry output and price” (Review of Market Structure, n.d.). It has a high entry and exit barrier and a perceived heterogeneous product. The firm is the sole provider of the product, substitutes for the product are limited, and high barriers are used to dissuade competitors and leads to a single firm being able to ...
...P, 2005, p 23) Around 2005 cell phones and PDAs were referred to as Swiss army knives of gadgets due to the fact they had many functions in one device. All the big phone companies at the time were premiering phones with more mp3 storage than mp3 player, essentially foreshadowing the future. (Dempsey, P, 2005, pg. 23)An average smart phone in the year 2014 can hold around 8-16 gigabytes of data, and if storage is allotted correctly, the phone can hold thousands of mp3s. Any mp3 player trying to have a foothold in the consumer market cannot compete with a device that is an essential part of an average person’s daily life, and a music player. “Smartphones with increasingly high-quality audio and video capabilities have become popular and therefore hamper demand for products in the Audio and Video Equipment Manufacturing industry.” (Krabeepetcharat, T. 2013. p. 8)
From trying to level your Discman in the air to avoid a song skipping, all the way to the convenience of hearing your music in almost any possible situation. There is no doubt at all that music players have come a long way to what they are now in our modern days. Not only did the creators of such devices help evolve the way we look at technology, but personally, it helped many people like me go from a tough time to a soothing one, from a dull experience into an inspiring and motivating one, and simply, a way out of reality. I dare say music players have become an essential and habitual part of my every day routine.