Differiating Between Market Structures Essay Example | Topics and Well Written Essays - 1000 words

Differiating Between Market Structures - Essay Example The first part of the paper will identify the market structure of the high technology industry; outline the market share of Samsung Corporation, explain why I decided upon this marketing structure and how different the marketing structure is from other alternatives. Part two of the paper will identify four competitive strategies that may be used by Samsung to maximize its profits effectively within the high tech industry’s competitive environment. More so the paper will evaluate the efficiency of these strategies in the market structure. Market structure of the high technology industry High technology industries are prone to the same market forces just like any other industry, but there exist few forces that are stronger in the high tech industry. Research claims that these forces affected the market structure of high technology industry in the 1890s and are still affecting the same industry to date. The high technology industry falls under an imperfectly competitive market st ructure, which means that products and services are highly differentiated (Varian, 2001). There are vast factors that arise from effective price discrimination that affects the high technology industry. These factors include personalization of products and pricing, versioning, bundling, switching costs, lock-in and economics of scale. Differentiation of products and services - The information technology allows flexible observation and analysis of consumer behavior, which in turn brings in various kinds of marketing strategies that seemed impossible on a large scale. For instance, a seller can offer prices and goods that are differentiated through individualized behavior and characteristics. Ideally, the high technology industry allows the market of one phenomenon where customers can personalize their prices (Varian, 2001). The high technology industry customers can personalize their adverts on the front pages online and can still buy a personally configured computer. According to th e theory of monopoly first degree price discrimination in most industries charge the highest prices they can to each customer, but the technology industry’s case is different because online sellers face competition from each other as well as from online sellers; hence, further stiffening the competition. Versioning - Versioning is a second-degree price discrimination that usually falls under product quality, which means that sellers design product line that appeals to different market segmentation. For instance, the latest trend of DVD version sells at a higher price and has a lot of content, an aspect that studios uses to discriminate prices between collectors and viewers, as well as between buyers and renters. Bundling - Bundling is the process of selling two or more distinct goods together for a single price. In the technology industry, these goods are â€Å"small† information goods like the individual items of web content that are sold in extremely large bundles. B undling affects the economy by reducing the dispersion of willingness to pay as well as increase entry barriers, but it enhances firm profits and overall efficiency (Varian, 2001). For instance, instead of a soft w3are company selling a word processor and a spreadsheet separately at different prices, the company could combine the two products and sell them at a higher price. Switching cost - Unlike other industries, switching costs in the high technolo

Economy Industry Company Analysis Research Paper

Economy Industry Company Analysis - Research Paper Example This growth has enabled the potential investors in bonds, stocks and other investing opportunities, to establish their investments tremendously in the country. The gross domestic price that was analyzed at the first quarter of the year shows that it has grown for about 1.3 percent. This is the best indication of the economic growth and I will advice Johnnie to do an investment in this country. Gross domestic products, is a technique used to show the economic growth and stability of any given country. In Australia where the Crown head quarters is found, had a gross domestic product of approximately 918 billion united states dollars, with a growth rate of 2.3 percent, and the income per person or per capita income of40,800 in the fiscal year 2011. The standard rate of interest in Australia was previously indicated at 4.25 Percent, which was determined by the Australian reserve bank of panel. The graph shows that the rates of interest of the year 2010 and 2009 had a drastic fall. It has also increased gradually and encounters small decrease recently. This is a clear indication that the Economy of Australia, and the performance of the currency is in its stage of recovery. The estimate is that it has a moderate increase in the near future as it is indicated by the tendency of the graph. Increase in the interest rates means that the investors will benefit from the consequential increase in the amount of dividends that they will receive1. Given the fact that Jonnie is looking for an investment that will last for ten years, This is a favorable time to invest in a booming company in Australia. This is because during this period, there is an economic recovery and such will lead to better economic performance of all the factors discussed above. The ten year bond in Australia has also jumped to reach 3.02 percent increase. For a potential investor like