ntroduction In the 21st century, we are encircled by technology with our lives being controlled by it. Since the early 20th century, developments and innovations in technologies have become more regular and cutting edge, resulting in continuous change in the waves of demand for the products made by electronics companies (Marketline, Global Consumer Electronics, October 2016, P.3.). In particular, The Australian electronics industry is constantly expanding and developing, with new ideas, products and innovations being created constantly. Marketline Research recently reported that the Australian consumer electronics market had total revenues of $2,596.8 million, this figure is only predicted to grow (Marketline, Australian Consumer Electronics, …show more content…
Australia records approximately 3.5% of the Asia pacific electronic consumer market, which is relatively small compared to China who account for 54.1% and next highest Japan, who account for 12.8% in 2014 (Marketline 2016, P.7). Consumer electronics is largely an international market, with the Asia-Pacific accounting for 28.6%, a long way behind the Americans who amount for 45.8%. This shows how small of a part Australia play in the consumer electronic market (Marktline, 2016, P.10.). The electronic consumer market is relatively non competitive, with only a few local competitors fighting against large international superstores. Local Australian stores such as Harvey Norman who recorded a revenue of $1,364.1 million and Dicksmith with a revenue of $1,227.6 million in 2014 have to compete with international superstores such as Amazon who had a revenue of $88,988 million and also Best Buy who recorded a revenue of $40,339 …show more content…
Consumers this age are typically tech savvy and have more money than there younger peers (ibis, 2017). At this age many people are buying a house or moving home, this is the reason home entertainment products are the largest product segment sold at 39.6%. The overall market demand has increased over the last few years due to the online shopping increase. Analysis Consumer Electronics Demand and Supply Graph: As shown above, the demand and supply graph represents the current global consumer electronics market. The demand shows how much of the product is wanted by the consumer. The supply represents how much of the product the market is able to offer to the consumer. When these two concepts are combined, at the intercepting point we are able to determine the market equilibrium. The graph shows that when there is a high demand for consumer electronics, supply increases. Due to their being many competitors in the market, when a certain products demand increases several companies will jump on board to sell the same or similar product. This therefore results in a decrease in the products price, as there are many companies fighting for market share. Furthermore, the consumer is given the ability to shop around for substitute products at a lower
Consumers would lose-out from increased competition in the short-run, however in the long-run consumers would ultimately benefit from increased competition. High levels of competition prevent businesses from abusing their market power, such as setting prices above or below what a perfectly competitive market would dictate to be at equilibrium and also encourages businesses to be innovative instead of becoming complacent, relying on consumer’s lack of choices.
Market is dominated by large players like Best Buy, Toys “R” Us, Gap, Sports Authority, etc
Distributors are pressed to reduce their costs to balance the lower margins from lower prices.
More competition in lower trade as other firms will try to convince that their product is better than K2-products.
The law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
A single firm or company is a producer, all the producers in the market form and industry, and the people places and consumers that an Industry plans to sell their goods is the market. So supply is simply the amount of goods producers, or an industry is willing to sell at a specific prices in a specific time. Subsequently there is a law of supply that reflects a direct relationship between price and quantity supplied. All else being equal the quantity supplied of an item increases as the price of that item increases. Supply curve represents the relationship between the price of the item and the quantity supplied. The Quantity supplied in a market is just the amount that firms are willing to produce and sell now.
The other side of the matter is excessive adherence to preferred suppliers neglecting the advantages competitive pricing. Competitive pricing could pave the way for reducing the price of the end product. This is what the evaluation of the T5 agreement now suggests.
When the price of raw material will go up or down, the production coats will rise or fall. Secondly, the price of substitute products also affect the supply curve. Because the relatived products are competitive relationship, when the price of one product goes up, another will goes down. It will affect suppy. Thirdly, production technology will affect the supply curve. When the level of technology is rising or falling , the production costs will go down or up. finally, the government policies will affect the supply curve. Positive policies will make the supply go up, conversely, it will go down. For example, the govenrment limit the amount of cars which people can buy, it will caused the supply curve down. In addition, the price of product in the future and the development of product company will also affect the supply
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
Technology is developing every now and then and so do innovation. It makes the industry competitive. In future, there is a probability of having few computers at home. Rather, people will be using new technology computers which have eyeglasses implanted with retina as the screen.
There is increased competition- This is a consequence of capitalism. Increased competition leads to improvement in terms of quality and efficiency of production. It also leads to low prices of products in the market, as producers want to have a larger share of the consumer market. In a capitalistic perspective, businesses that produce high quality products at a low price enjoy a larger market share.
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.
...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.
What does supply and demand mean? Demand indicates the quantity of a product or service that is aspired by