Current Market Condition Competitive Analysis

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Current Market Conditions Competitive Analysis
John Smith
ECO/365
January 1, 2020
University of Phoenix
Jane Doe
Current Market Conditions Competitive Analysis
Internet streaming alternatives for traditional television and radio are becoming increasingly popular. Companies such as Netflix, Hulu Plus, Pandora, Spotify, and the like are used in the everyday lives of a large percentage of Americans. Here at Team A Corp. we want to develop a device to bring all of these Internet alternatives back to the television. The problem is that not every consumer has a state of the art television, complete with HDMI connections. Our solution is a small box that acts as a bridge between any television and the Internet. We call it The Globe.
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Increased supply without changes to the demand creates a surplus leading to a lower equilibrium price and decreased supply. Without changes to the demand, our cost structure would lead to a higher equilibrium price due to shortage.
Issues and Opportunities
Companies use price elasticity as a tool to identify the overall change in supply or demand of a product compared to the movement of price. When deciding to market a new product like The Globe, we discussed what the price should be. We use elasticity of demand to determine whether our profits will go up or down if we set a lower price than the current price of the Roku. Since there are other possible alternatives for our consumers to choose from when it comes to streaming devices, it is very important that our product meet the needs of our potential buyers.
One issue that we may come across when it comes to technological innovation is if The Globe is non-compatible with Apple products. Since these days most consumers have at least one Apple product it is very important that we design the Globe to be able to use the airplay function from compatible Apple devices. Currently, most Blu-ray/DVD’s offer a free digital copy of a movie that viewers can download onto their iTunes account. Currently, the Roku is incompatible with iTunes, so consumers are missing that feature if they decide to go with the Roku. We must make sure that The
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