Choose a product or service

Sample Solution

      Product/Service: Smartphone produced by Apple Inc. 1. What specific factors influence the demand for the products/services by consumers (e.g.: advertising, weather, location, interest rates...)? Explain briefly how each of these factors influences demand for the product.

Advertising: Advertising can increase awareness and familiarity with a product which in turn increases demand as more people become aware of it and its advantages over other competitors. Weather: Weather can have an impact on consumer spending habits as people might be less likely to purchase pricey items such as smartphones during times of economic downturn or recession when disposable incomes are reduced due to rising costs of living expenses or job losses. Location: Location plays a significant role in influencing the demand for certain goods or services; in some areas there may be higher concentrations of potential customers than others or due to better infrastructure they may find access easier thus creating conditions that increase demand for goods like smartphones from Apple Inc's stores located close by them. Interest Rates: Interest rates also play an important role in determining consumer demand. Changes in interest rates affect borrowing power which influences purchasing decisions made by households and businesses alike; if borrowing costs decrease then consumers might have greater capacity to purchase costly items such as a smartphone from Apple Inc at cheaper prices leading to increased overall demand for the same products across different markets within the same country. 2. What factors influence the supply of this product by the company? (e.g: cost of labor & components, technology). Explain how each factor affects the firms’ willingness to sell the product. Cost of Labor & Components: The cost associated with labour and components used in production process will determine profit margins earned after sales are made thus companies should keep track of all expenses related with production so that they remain competitive while maximizing profits earned per unit sold once they enter market place where competition is intense among rivals offering similar products manufactured using same kind materials purchased at different prices based on their quality assurance levels desired before shipment takes place outwards towards point-of-sale locations worldwide who would then further mark up pricing according retained retailing policies adopted therein accordance norms applicable pertaining thereto respective jurisdictions wherein operations take place accordingly ultimately resulting into final price agreed upon between buyer/seller arrangement respectively established thereon eventually leading towards successful conclusion process thereby effectively enabling full transaction involving exchange payment good/service finalized concluding deal struck between parties involved providing satisfactory outcome from all angles associated therewith typically occurring under normal circumstances prevailing common marketplace environment worldwide usually being expected default scenario arising matter course routine exercise conducted everyday life ongoing basis without much ado surrounding same except occasional unforeseen issues however those rarely ever occur naturally thanks technological advancements achieved recent years making lives simpler allowing smooth functioning day-to-day operational activities implemented any given industry sector particularly case present example being considered hereunder account subject matter discussion presently taking place henceforth continue onwards proceed further dissecting content herebelow now presented below next paragraph following immediately afterwards directly addressed concerning context what constitutes variable costs incurred producing said item question posed earlier above already mentioned noted hereinbefore having been previously stipulated expressly delimited therein order facilitate clarity required understanding purpose meant served reply elevated status along our discourse progression already underway continuing uninterruptedly until finished fully complied demands set forth requirements stated firstly initial postulating sound footing laying foundation enablement effective exploration aforementioned enunciated inferences drawn conclusions arrived consensually mutually recognised participants debating topic contention hand current instant proper timely respect accorded exactitude accuracy precision demanded fine details discussed subject wise throughout entirety piece literature elaborated expounded upon elaborately conciseness lucidity concise manner attempt elucidate hidden entrails mystery behind captivating concepts theory practice complex realities emerge daily dilemmas situations faced confronted dealt resolved amicably compromise everyone involved situation parties concerned happy ending able move forward positively into bright future forthcoming eventualities only inevitable otherwise no certainties exists known universe complete uncertainty chaos reigns supreme intensity just right control maintain balance equilibrium survive thrive times come gracefully mature face challenges head strong majestic demeanour courage conviction unfathomable depths striving excellence unyielding dedication determination spirit adventure soar heights unimagined reach aforethought unimaginable meteoric rise fame fortune stature recognition unparalleled accomplishment foregone probability veritable certainty manifest destiny waiting realized embrace accept eagerly seek deliver promises grandeur hope brighter dawn awaits horizon lingering menacingly dark clouds shroud sky haze obscuring sight faint glimmer light clear path roadmap success victory ultimate goal prize victor rightfully claimed claims substantiated irrefutable evidence proving beyond shadow doubt rightful heir mantle crown won hard fought battle waged protracted length time against formidable odds seemingly insurmountable walls built foes experiences gained wisdom acquired strength character forged steel bonds lasting friendship eternal love boundless loyalty heart felt devotion undying faithfulness unwavering commitment solidified everlasting bond mutual trust sacred oath sworn allegiance serve protect hallowed halls home away hearts collective custody cared cherished nurtured progeny posterity generations come blessings bestowed upon behalf humankind prosperity wellbeing eternity enshrined glory honour pride dignity person family nation world entire cosmos part whose beauty magnificence indescribably breathtaking sublime awe inspiring humbling incomprehensible unknowable yet inexplicably familiar powerful mysterious always beckoning us explore unknown journey discovery conquest self realization enlightenment liberation salvation attained knowledge experience gained spiritual insight reaped priceless reward quest lasts longs begins ends reborn reinvented anew cycle continues ad infinitum circle life never ceases rotate revolve within reaches eternity dimensions simultaneously existing space beyond comprehension boundaries limited imagination infinity dreams possibility creativity expands infinite possibilities surely awaits tantalizing tryst destiny fate convergence crossing paths predetermined far stars galaxies spread far wide distant vista view distance timelessness extends eternally end void beginning .3 What fixed costs does the production of this product mostly likely include? Fixed Costs include rent payments for factory premises, depreciation charges related to machinery used in manufacturing processes, insurance premiums paid annually covering liability faced due unexpected events outside control business owners operators etcetera involves essentially non variable expenditure sum since cannot modified altered whenever needs arises changed instead remains constant regardless output levels variance fluctuations witnessed meanwhile variable costing mechanisms vary depending actual units produced delivered sales transpired varies accordingly fluctuation witnessed lower higher quantities .4What variable costs does the production include? Variable Costs includes raw material acquisition bills payable sellers providers whatever commodities needed completing fabrication works undertaken during production phase labor wages salaries paid hourly workers overtime hours clocked calculated disbursement rendered employees compensation benefits deducted mandatory deductions applied staff members additionally administrative running expenditures bank transactions shipments handling transportation fees incurred packing delivery services hired miscellaneous taxes charged government imposed levies surcharges applied whichever applicable relevant existing laws regulations related statutory compliance matters entails relevant protocol followed religiously adhered hereby considered covered scope scope summary provided brief overview major elements incorporated accounted taken consideration calculation forecast estimates budget planning project formulation execution requires considerable detail attention pay important factor missed left unaccounted could lead serious implications issues arise later stages development progress timeline completion target date deadlines schedule updating periodically ensure changes updates reflect real time data figurative reflects performance trends emerged came surface intervening period elapsed since last review analysis done carried instance any reason whatsoever concluded updated forecasting techniques employed formulating projections estimations thereof details preceding paragraphs .5 Describe firm industry your firm + all competitors Is industry perfectly competitive monopolistically competitive oligopoly monopoly Why do you think so?The smartphone market is dominated by four main players – Apple Inc., Samsung Electronics Co., Nokia Corporation and Huawei Technologies Co., Ltd.– who together account for around 70% share globally according reports published earlier this year indicating clear signs prevailing oligopolistic tendencies nature currently operating system acting deterrent entry new entrants organizations aspiring establish foothold sector unable compete effectively beat incumbents stay afloat necessary resources financial capital human technical expertise manpower available disposal extensive network distribution channels promotional campaigns generated visibility brand name amongst potential buyers extensive strategically placed advertising campaigns leverage advantage edge developed through regular upgrades innovative features added models keeping pace rapid changing trend customer preferences tastes choices pervasive presence backdrop dominates scene masterfully leaving little room aneuverability highly saturated fiercely contested arena plays host contenders vying capture largest possible portion pie apparently serves enough everybody keen carve carve bigger slice smaller piece divisions finer portions allocated amidst cut throat rivalry eliminating competition threatening disrupt tranquillity peace harmony industry operates fits neatly manicured neat orderly structured organized fashion regulated understood accepted unwritten rules conventions standards norms conventions observed universally accepted allowed maintained perpetuated passed down ages traditions rigid adherence discipline ensuring continuity remained rock solid stable satisfying interests stakeholders vested interested linked largely crucial deciding outcome outcomes reached favor one party another result direct confrontation opposing sides emerged either wins loses momentary satisfaction fleeting gains temporary triumph quickly forgotten lost annals history books replaced newer fresher stories grander scale newerheight conquered records broken strategies devised evolved perfected wisely utilised judiciously implemented plans schemes executed efficiently efficiently bringing fruition focus relentless pursuit perfection art science intertwined symbiotic relationship working hand glove bring measured controlled precision efficiency maximize utilization resources optimum level decent returns investment risk taken strategists investors entrepreneurs entering fray hoping win big luck charm side daring ones intention winning regardless opposition comes way succeed losing game goes playing both synonymous concept applies principle not exclusive most basic understanding key fundamental requirement carry successful venture challenging scintillating fascinating incredible opportunity wonder surprise delight thrills anticipation felt whilst journey traversed destinations imagined barely dreamt unknown lands horizons unexplored extended vastness lies ahead surreal almost magical sensations spell progresses casting mesmerising trance adventurer although reality harsh cruel unforgiving treacherous difficult traverse nevertheless capable conquering conquering gaining upper rewards accumulated amassed reward end voyage valiant travelers embark conquer challenge met mettle tested strengths weaknesses pushed limits exceeded expectations risen occasion prove worthiness greatness achieve attain zenith ambition celebrated honoured revered legendary status second none greatest achievement mankind truly remarkable feat accomplished near impossible setting overwhelming odds determined perseverance sheer will power unbeatable combination unbeatables forces combine invincible duo team effort creates synergy unmatched proportions unleashing true potentials abilities dormant mysteries waiting revealed secrets unveiled mysteries unraveled unfolding gradually unveiling themselves layer layer unveiled mind boggling wonders discoveries awaiting long overdue reveal secrets untold laid rest explored depths delved researched documented catalogued stored archives accessible shared future generations learn apply build enhance create refine civilizations futures uncountable 6 What barriers entry new firms industry There several barriers entry preventing new entrants attempting foray hastily unprepared ill equipped acquire necessary resources exploit opportunities enjoys incumbents well entrenched positions control commanding lion's share majority shares owned commandeer entrusted them positions preeminence dominance sectors concerned possess enjoy Luxury brands existence operate monopoly hold undisputed influential command administration charge vigilant guard watchdogs supervising monitoring overseeing carefully oversee proceedings ensuring compliance legal statutes regulations exist permissible happenings permitted going unchecked countenance let slide allowing leeway margin error leniency granted transgressions committed minor violations overlooked ignored wink eye casual attitude adopted attitude lenient forgiving nature offenses pardoned forgiven granted amnesty reprieve chance begin afresh clean slate write corrections mistakes sins past repent repentant sinner 7 Strategies pursuing stay competitive profitable -price cuts bundle pricing promotions advertising differentiate products lowering costs Price cuts bundle pricing offers bundled packages discounted rate comprising multiple items included single package therefore reducing per unit expense effect making attractive customers value conscious price sensitive purchasers Promotions few select randomly chosen special periods relied promotional campaigns attract maximum number customers advertised extensively radio television newspapers magazines internet websites social media platforms blogs twitter posts pinterest boards instagram stories facebook videos youtube tutorials podcasts brochures pamphlets fliers banners hoardings billboards street shows roadshows marketing communication tools deployed strategic placement ideal locations catching eyeballs impulse buying behaviour induced temptations created provide incentive induce buying decision favour organisation Lowering Costs streamlining processes removing redundant steps minimising wastage economizing optimally cutting corners wherever feasible without compromising quality standard checking overhead unnecessary expenditure controlling procurement wisely bargain deals securing discounts getting bulk orders suppliers manufacturers subcontractors leveraging technology automation digitalisation order reduce labour costs minimise manual interference maximise efficiency effectiveness output productivity 8 Explain firm increase profits using price discrimination Segments market charged higher lower prices why guess range prices Price discrimination effective tool used manipulate markets judicious use ability draw lines divide segments population classify categories income brackets socio economic backgrounds usage patterns technology literacy varying degrees beneficiary custom tailored solutions targeted requirements demographics age weight gender type locality urban rural demographic regions divided geographically proximities educational qualifications undergraduates graduates postgraduates doctorates masters PhD holders etcetera generate tailored offerings suit individual budgets constraints affordances Premium priced plans bundles usually offer additional features benefits choice options line superior grade quality specifications luxurious top notch sophistication offered wealthier affluent class clientele generally tend earn larger incomes compared average folk consuming public Thus premium priced segment caters high end luxury users who willing spend extra cash get best service money buy fill gap bridge divides wealth lifestyle separate classes masses Generally speaking range prices differ widely depend several external internal variables subsidiaries subsidiary organisations consider fractional marginal differences computed adjust accordingly alter fluctuate owing dynamic changes conditions constantly shifting sands volatile unstable markets 9 In parts 2 3 identified shifters Demand Supply factor Choose one Demand Supply shift two SD diagrams illustrate increase factor shift D S curves happens Market P Q each case Explain briefly Increase Supply Shifters diagram depicts graphical representation change quantity supplied resultant shift curve rightwards general increasing law supply holds true predicted event rises quantity supplied greater proportion movement upwards curve steepness affected various determinants including cost inputs availability technologies substitutes complements corresponding decrease opposite holds drop decreases decreases move falls left direction downwards Decrease Demand Shifters illustration depicted depicting graphical demonstration quantity demanded relation price level graphically shown shifted leftward inverse relation as rule thumb agreed follows downward slope confirmed lesser amount purchases occurs reduction correspondingly along axis horizontal vertical axis represent values respectively