...balanced. It can also be defined “as the point where supply equals demand for a product – the equilibrium price is where the hypothetical supply and demand curves intersect” (Investopedia, 2013). It is important to understand supply and demand of a product in order to find equilibrium. In today’s market, consumers are usually weary about purchases of large items due to the fact there are many competitors competing for the same potential customers. Could you live without the internet, cell phone, microwave, television, or any other electric technologies? Law of Demand and Supply The world today have grown to rely heavily on technology, especially the cellular phones, in their daily activities. “The average U.S. household today owns at least 23 consumer electronic products” (Get Energy Active, 2011). As the technology in cell phones changes, consumers are eager to purchase the latest styles whether for practical uses or to be consider part of the “in crowd”. Suppliers uses this information in researching and to appropriately distribute the products and services by applying the laws of demand and supply. The law of demand is when “supply is held constant, an increase in demand leads to an increased market prices, while a decrease in demand leads to a decreased market price” (InvestorWords, 2013). The law of supply can be defined as “an economic theory which states that a company faced with constant demand will be able to raise prices inversely to shrinking available supply;...
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...2012 ECO/365 Franny Chan Factors that affect demand, supply, and equilibrium prices in the market in which the competing organization operates; define the market for your chosen product, including an analysis of its competitors, potential customers, or potential buyers. The cell phone market is a massive market. Some studies conclude that more than half the world has cell phone accounts. One attribute that defines the cell phone market is the idea of consumers giving up their land line use. Many individuals are now giving up their land line use in favor of using only a cell phone. This causes a large influx of customers into the market for cell phones. As technology continues to advance new types of cell phones are developed and marketed to different segments of the population. Now cell phones are available for business purposes and social purposes such as social networking, text messaging, or gaming. Apple Inc., like any other corporation, has supply and demand that is affected by a variety of factors. In fact businesses create products and offer services based on their customers’ demands and the demands of the customers, or the lack thereof, affects the available supply. One of the main issues that drive demand of a product is customer preference. The preference of the customer and the desire of the product that a company sells can affect the demand curve. As more customers want a product like the iPhone, the demand curve shifts to the right. Families, friends and...
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...decide upon a technique to organize for forecasting. The organization must take into account the market potential to determine the consumer demand for new services or products. Forecasting assists in predicting sales revenue for at least five years in advance. Forecasting will also serve as a means to identify the target market and trends that could impact the sales of the new service or product. The cell phone industry has proven to be one with continuous evolvement. As technology advances the innovation and competitive market continues to generate more options for consumers at low competitive pricing. Consumers in the cell phone market are demanding higher quality cell phones with multi functioning capabilities that have forced manufacturers to create cell phones that combine numerous electronic devices into one cell phone. Cell phones are now being manufactured with the functioning of cameras, video cameras, computers, personal organizers, music players, global positioning systems (GPS), and streaming of television. Macro trends are long lasting and cannot be altered or manipulated, but evolve with life and time. Marketers must analyze and take into consideration the macro trends that are related to the company’s product to prepare and plan for the future accordingly. The cell phone industry must look at the macro trends in cell phones, technology,...
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...Cell Phones and the Curve For this project we will analyze cell phones and the impact they have on current economic trends and realities on politics, the workplace and the quality of individual lives. There are two brands of cell phones that are almost identical except for some minor features and they are the A-Phone and the Pomegranate. First off the pomegranate is a mobile phone concept that became a viral mock campaign funded by the government of Nova Scotia in order to build interest in the small Canada province. The functionality or features of the fake device has gradually been introduced partially into mobile phones over the years since the inception of the marketing campaign but despite the farce, it has been a successful campaign as it has drawn over 3 million visits from various countries. The A- minus phone otherwise known as a cell phone is an electronic device which is wireless that is used to make phone calls in addition to having multimedia functions or features. These phones gain signals from their respective cell phone towers or borrow signals from other affiliated towers in order for their consumers to make calls either indoors or outdoors. In the previous discussion board we learned what the laws of supply and demand in relation to medical field but the law is a major subject of study in the field of economics as the concept applies to all industry fields. From what we understand, for a market to function, producers must supply the goods that consumers...
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...Cell phone – The incredible invention The invention of something touch every aspect of our lives nowadays. Such devices changed the way we manage, work, and live. A machine that has done all this and more now exists in nearly every business over the world. This incredible invention is the mobile phone. Nowadays, almost everyone has cell phones. It makes communication faster and easier. You can just dial a person’s number and you are talking to them. You can be anywhere and doing anything and yet you can confirm a meeting to business partner, instruct your secretary to do some paperwork or whisper sweet nothings to your loved ones. Cell phones take the need of physically being with the person to be able to connect to them. But exactly how did these gadgets come about? Like any gadget, cell phones evolved over time, and each stage was very interesting. It keeps up with the ongoing changes and demands of the people who use it. The real story started with radio technology. These were used to communicate and are linked on a central data base. The first official cell phone was used by the Swedish police. This was in 1946. They did it by connecting a handheld phone to the telephone network. It was quite similar to the two way radio. During that decade, cell phones were simply not practical. People can make six phone calls and the battery was already dead. The electronics used in cell phones that we see now were first developed in the 1960s. During this time, the technology...
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...is pretty much wrapped up in evolving technology as it constantly changes with time. This paper will discuss how Apple’s I Phone affects the demand, supply, and the equilibrium prices within a market. The analysis of its competitors as well as potential buyers along with customer base will be discussed. The cell phone industry is one line of business that will forever stay busy. According to Gartner in 2013 Apple sold 150,785.9 trailing right behind Samsung with 299,794.9. Most individuals have done away with the use of home phone or in other terms land line phones and starting to use cell phones. This has a lot to do with technology advancing. Cell phones are now equipped to be able to do things that you were once only able to do on a computer. They are used more now for business purposes, social networking, gaming and paying bills online. Thirty years ago Apple introduced Macintosh with a promise to put the creative power of technology in everyone’s hands (Apple, 2014) needless to say they have firmly stood behind their word. Apple’s supply and demand is factored by a number of things. When manufacturers introduce items to their customers or target customers it’s based off the demand of the customer which determines the supply that is later produced. When you have a demand in a product like you do with the I Phone, you will see a shift and the demand will continue to get larger and larger. Individuals make purchases the majority of the time on the things they have heard...
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...companies thoroughly research the market, the demand, and what consumers want. To best determine the potentials of this new product, it is important also to understand the existing and potential competitive market, explore different opportunities or issues that the company could face, and consider the factors that could affect the cost of producing the product. Company History Samsung was founded by Lee Byung Chul in 1938 in Taegu, Korea as an export trade company selling to nearby countries. During the 1980s, Samsung devoted more focus to its electronic division and began introducing products such as DVD technology, computer technology, and many other electronics as well. (Kovach, 2013) In 1983, Samsung Electronics evolved. It was not until 1999 when Samsung would make their mobile phone division the most profitable part of the company by releasing their first internet ready phone. Over ten years later, they released the first version of their flagship Android phone, the Galaxy S. (Kovach, 2013) Product History Since the original model hit the scene in 2010, many new versions have been released in the Galaxy S Series cell phone made by Samsung. (Kovach, 2013) The Galaxy S series is best known for its sleek design, its complex processor and graphic design, and its 5-megapixel camera. (Samsung, 2015) The most recent release in this series is the Galaxy S6. This model also comes as the S6 Edge, and Edge+. This new flagship phone contains many improvements over the S5, such...
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...Marketing Plan Phone Zone (One Stop Shop) Nidal Maali Devry University (Keller School of Management) November/2013 1.0 Executive Summary Phone Zone (One Stop Shop) is a premier cell phone shop that concentrates on providing state of the art services regarding all cell phone needs from A to Z. such as Activation to your choice of any phone service provider using the latest technology of flashing or unlocking, Phone Zone will also offer customers with a quick fix to most major issues in software and hardware like system restore, application updates, screen replacements or charging ports fix and much more. Repairs that normally take days, would only take minutes or few hours in most cases, under the same roof without having to ship phones out of town for repair like what all major phone companies do especially for major repair like screen replacements . All that will have a lot to do with customer time and convenience, in some incidence frustrations and disappointment when customer left without phone for long hours or some time days. Phone Zone will be selling to individuals as well as business. While there are many different Competitors in the market, now they are larger in corporate setting and size but much less Flexible when it comes to services and quick repair. Phone Zone will be able to meet customer Demands through superior technical IT supports, customer service, quality products and most Important a quick fix and repair with 100% satisfaction. Local market...
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...Cell Phone Company Clair Smith ECO/561 March 17, 2014 Cell Phone Company Cell phones have evolved over the years since 1973 when Dr. Martin Cooper while working for Motorola invented the first personal handset (Keith, 2004). In 1988 another important event occurred for the cell phone industry, which is when The Cellular Technology Industry Association is formed (Keith, 2004). The association is what helped form the cellular industry into the empire it is today (Keith, 2004). Cell phones are very popular now and many people have cell phones, but no longer have a landline. The population is growing and the need for more cellular providers is great. The increasing demand is why I want to start a new company where cell phones, accessories, and cell phone services will be provided. There are four market structures that an industry can evolve through. The first is market structure is the pure monopoly and is where one company is the sole seller or producer of a good or service (McConnell, Brue, & Flynn, 2009). In 1973 when the first one was invented the cell phone industry was in the pure monopoly market structure. Over the years though as the industry grew the market structure changed. The next stage that the industry entered into was the oligopoly market, which is when there are only a few sellers that offer a standardized product or service (McConnell, Brue, & Flynn, 2009). The next market stage the industry moved into was the pure competition stage, which is when...
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...Assignment #1 October 11th 2010 1. A) i. If the price of cells phones decreases there will be an increase in the demand. ii. If the price of a cell phone is expected to fall next month, the short term demand will decrease until the lower price emerges and then demand will increase at that time. iii. If the price of a call from a cellphone decreases, the demand for cell phones will increase. iv. If the price of a call increases from a landline the demand for cell phones will increase. v. The introduction of a camera phone will increase demand of cell phones. B) (See Attached Appendix 1) C) Event “i” illustrates the law of demand because everything is equal apart from the price. 2. A) The offering of online movie viewing will make the demand for in-store movie rentals more elastic. B) The cross elasticity of demand for online movie rentals would be positive because it is a substitute for in-store movie rentals C) The cross elasticity of demand would be negative with respect to high speed internet and online movie rentals because the service is complementary. 3. A) Based on the news clip wedding events are a normal good because as the income decreases, demand increases. B) Based on the news clip, weddings are more of a luxury because the demand is related to price and income. C) Given my answer to B, the income elasticity of demand would be greater than 1 because income is elastic in this situation...
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...competition |Monopoly |Monopolistic competition |Oligopoly | |Example organization |Meat Packaging Company |Satellite & Cable Company |Clothing Company |Cell Phone Maker Company | |Goods or services produced by the |Packaging meats for sale at market |Providing tv service for purchasers of |Provide clothing for small to large |Cell phones for multiple cell | |organization |retailers |the service. |clothing retailers. |phone coverage providers. | |Barriers to entry |Must have the necessary room to house |There are many barriers to enter. First,|There are many small to large companies|There are only a few companies | | |mass amounts of cattle to keep up with |one must be able to have a patent |that produce clothing, products are |that make the cell phones that the| | |the demand. |product so that it does not interfere |similar but not one is exact like any |companies need to sell. There are | | | |with the competition. Second, be able to|other. ...
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...Current Market Conditions Competitive Analysis Microeconomics 365 December 8, 2014 Introduction/ History of Apple, Inc. When participating in an increasingly competitive industry like the cell phone industry one must be prepared for any thing their competitors come out with. In order to stay ahead or at least in the game is to know your competitor and their product. Apple is one of the biggest cell phone competitors there is and knowing about them will always help out. Apple Inc. is a multinational corporation with 284 retail locations spanning 10 different countries. Apple has developed a unique reputation and is currently the largest technology firm in the world; with its stock market value reaching $500 billion in sales for 2011, (History of Apple, 2012). With headquarters located in Cupertino, California, Steve Jobs and Steve Wozniak successfully invented, and launched the first personal computer kit on April fool’s Day in 1976; known as the Apple I. The following year, the Apple computer, or Apple I, led to the incorporation of Apple Computer, Inc. As technology grew through the 80’s and 90’s, Steve and Steve continued to manufacture personal computers, or PC’s, including product lines such as Apple II, Macintosh, and Power Mac. Advancement of Apple Computer Inc. Steve and Steve continued to grow Apple Computer Inc., becoming the multinational leader in the consumer electronics industry and in 2001, dropped ‘computer’ from its name; after the successful...
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...BU3315 Unit 4 Research Paper 2 Forecasting Model in Use For this research paper I used a study done by Sprint for forecasting usage costs and computer capacity required for their network and cell phone towers. The use of data related to transactions collected from computing devices in their facilities was used to calculate a forecast of usage at peak hours. This study was done in the early stages of Sprint becoming a cell phone company and it is still used today to help upgrade and maintain their network. This helped Sprint determine a forecast of data usage on customer cell phones so they could determine the type and amount of equipment needed to get ample coverage and network bandwidth to provide their cell phone service to the customers. The methods they used were 5 variables used in their forecasting model; 1. First span of time comprises usage in seconds, minutes, hours, days, months and years. 2. Computing device comprises at least one of a server, telecommunications switch and computer 3. Data collection of computing software processes, computer programs used, business logic model, and software usage (apps) 4. Software usage at server farms 5. Threshold percentage representing actual customer airtime usage By doing this Sprint was able to determine the demand that customers would be putting on their networks and the bandwidth being used. The first inclination was to build a massive network of coverage all across America to stake claim to the most...
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...when having a conversation on a cell phone, a conversation with a passenger and when driving without any problems or distractions. In the beginning of the article, it talks about the 3 levels of performance that a person can specialize if their trying to multitask, like talking on a cell phone. For an example in the article “Passenger and Cell Phone Conversations in Simulated Driving” states that the vehicle could drift to the side on the street, this shows that driver tries to multitask like conversing on a cell phone, the driver’s won’t be able to stay focus on the...
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...you will, most likely, never buy any technological product. There will always be something cheaper and better to come. That relationship and development in technology is what is referred to as life in the technology lane. Price in a technological innovation includes the idea, in other words, the creation of the idea. It is what made the product possible and what made the product unique and a leader in the market. Additionally, price includes the time of creation of the product, and, most importantly, the value of creating the iPhone in terms of what the manufacturers believe will match the customers’ expectations and benefits. 2. Discuss the role that product demand played in pricing the iPhone. How did this demand influence Apple’s decision to price it high in the beginning and then lower it two months later? Demand can be defined as the quantity of a product that is bought by consumers in the market at various prices under a specific period of time. It has multiple determinants, but the most important is price. Price is inversely related with the quantity demanded....
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