Current Market Conditions Competitive Analysis

1964 Words Feb 3rd, 2013 8 Pages
Current Market Conditions Competitive Analysis
Christina Hand, Ray Philips, Emmet Flynn, Cat Guerrera,
Christa Rehmeyer, Mike Norton, & Nikolas Morrow
August 6, 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 of the United States has cell phone accounts (Simon, 2004). 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
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into the market. If the size of the market increases the demand curve shifts to the right. When the IPhone first came to the cell phone market in 2007 it offered an alternative in the cell phone market, generally competition between cell makers can cause the demand for a product to drop (Yahoo Inc., 2012). As an example if Samsung were the market leader before the IPhone’s initial debut and just as many people are still buying cell phones the introduction of the IPhone caused several consumers to leave to Samsung for Apple Inc. This eventually leads to price wars were companies must the lower the price of their products and may require a cut in supply to fall in line with the decrease in demand.
Price elasticity is a tool designed to identify the overall change in demand or supply of a product compared to the overall movement of price. Apple frequently talks about the whether they should change the price of the current iPhone. Apple uses elasticity of demand to determine if their profits will go up or down by lowering its price. Before the iPhone was released it was estimated to be sold at a very high value. So with that being said, Apple lowered the price tremendously, especially if you think about all the features you get. Apple sold a very large amount of these phones the first day. One thing that gave
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