FIN 370 Week 3 Learning Team Assignment Essay Example for Free

FIN 370 Week 3 Learning Team assignment EssayLearning Team Current Market Conditions Competitive Analysis This physical composition allow for throw away a short history and descriptions of orchard apple trees I Pad minicomputer. It will also restrain factors that affect gather in, supply, and equilibrium sets in the food securities industry. Issues that apple faces that affect its competitiveness will also be addressed. Lastly, this paper will pose the long term lucrativeness of the iPad including, terms elasticity of demand, expert innovation, and constitute structure. Steven Jobs and Steven Wozniak were friends in high school, which shargond like interested in electronics. They designed what would become the orchard apple tree and on April 1, 1976, Apple Computer was born. This is an Ameri house based company located in California. Apple specializes in design advancing, and the sales electronics, computer softw atomic number 18, and computers. Apple is accred ited for some of the most popular products of the modern world of technology such as iPod, iPhone, iPad, and iTunes.Apple has expanded its retail stores to quadrupletteen countries worldwide with 408 retail store not to watch their online stores, Apple Store and iTunes. Apples value as of March 2013 is $415 million, and it is the largest most publicly traded companies. The iPad is a t subjectt designed minicomputer that was released in 2010 by Apple. This device has equipped with Wi-Fi and has a multi- touch screen. There are five different versions of this particular tab key. Each has the capability to play music, record videos, a camera function, shop the network, e-mailing. Games, GPS navigation system, and social networking can also be downloaded to the device. A market is as a army of consumers and retailers of a specific merchandise or renovation. Demand is the actual volume that consumers are prepared and able to obtain. Quantity necessitated is the demand at a specifi c amount and is symbolized as the demand curve. The supply of a product is the amount of money that manufacturers are prepared and capable to convey to the market the sale ofthe product.The market can be analyzed by matching the supply and demand curve. Equilibrium is the connection of supply and demand curves. The equilibrium amount is the amount where the number demanded matches the number supplied. A veer in price does not necessarily mean that the demand will change. It is much likely for the quantity demanded will affect the price. If the price is changed the curve will drive along the demand curve. When the price is reduced the quantity demand will be increased. When the IPad was released, it was the only product in that market at that time. Therefore, at that time it absolutely controlled the tablet division. Some corporations tried to contend with Apple, exclusively recognized their position just could not compete. The competition combated Apple by creating smaller tabl et that is an unfamiliar place for Apple. This creation worked and ca utilize Apple to lose sales. The competitors rapidly launch their place in the market. Price elasticity of demand is an issue that our organization, Apple faces that affects our competitiveness and long-term profitability with regards to the iPad. Price elasticity of demand and supply tells us exactly how quantity responds to a change in price.As elasticity increases, quantity responds more to price changes. Demand or supply is elastic, if the percentage change in quantity is greater than the percentage change in price(University Of Phoenix, 2010, pp. 154-157). After reviewing data, specifically tar force backed to the leash types of iPads their pricing, capabilities and memory storage, it was determined that if the price of the iPads increased then the consumers may not corrupt them (What Is An Apple Ipads Elasticity Of Demand?, 2012). The price elasticity of demand tells us that although apple is very(pre nominal) technological innovative, but as it relates to price elasticity of demand the quantity does not matter (all the changes, modifications, additions, advancements, etc.) consumers will still purchase the cheaper iPad (cost efficient) Apple should not invest in making more iPads. Consumer(s) cant readily identify / understand the importance /significance of having more capabilities, memory, storage, etc. The consumer(s) would ultimately shop for and purchase the iPad thats more conducive to their needs. Although apple has is very technological innovative, but as it relates to price elasticity of demand the quantity does not matter (all the changes, modifications, additions, advancements, etc.) consumers will still purchase the cheaper iPad (cost efficient)Technological innovation is an opportunity for our organization, (Apple) to face that affects our competitiveness and long-term profitability with regards to the iPad. Through technological innovation our organization will be able to make improvements to something that already exists such as the Apple iPad. Is the improvement to something that already exists. Technological innovation will unceasingly take a shit a huge impact on Apple Corporation.As it directly relates to the iPad, with the technological innovation, we are able to re-invest and re-invent the iPad. As with any product of this magnitude, the cost will increase, more features will be added, more storage, more variability, etc. As long as we are innovative and have a willingness to be creative we will consistently bring new items to the market that will steady intrigue the consumers and adapts to their technological needs. Cost Structure (TC = FC + VC) is the be of production, the identification of how costs associated with the production of a good or service are distributed throughout the process The cost structure consists of fixed costs, variable costs and total cost (University Of Phoenix, 2010, pp. 283-285). According to Internal Fa ctors Costs (n.d.), When analyzing cost, the marketer will consider all costs needed to get the product to market including those associated with production, marketing, distribution and company administration (e.g., office expense).These costs can be divide into two main categories fixed costs and variable costs. Fixed costs are costs that are spent and cannot be recovered (rent, credit interest, maintenance costs, security and administrative expenses, oft salary). The study factors affecting fixed costs are (1) Changes in business organization, (2) Changes in technology applied, (3) Sale of manufacturing equipment and (3) Decisions to set about advertising activities, etc. Variable costs are costs that vary with production. Factors affecting variable costs, including productivity and others that change the supply of and demand for labor (internal factors), (1) Involve costs of items that are either components of the product (parts/packaging), (2) immediately associated with creating the product (electricity to run an assembly line), (3) Coupons and (4) Variable costs, especially for tangible products tend to decline as more units are produced. This is due to the producing companys ability to purchase product components for lower prices since component suppliers often providediscounted pricing for large quantity purchases (). Total cost the sum of all costs of inputs used by a firm in production TC = FC + VC Apple is one of the worlds most admired brands. Every year, as rumors about Apples products start to emerge web sites begin to speculate which suppliers are likely to win Apples business.Getting a hire from Apple can lift a companys value by millions of dollars. On October 22 Apple released a variety of new hardware and software. Apples new iPad is clearly rivet on improving the iPad product profit margin, while also maintaining it strong market share. One of the ways Apple can maximize their profit is by reducing the price of the lord iPad min i. Another tribute that can maximize the profit for Apple is to also make radical improvements to the full-size iPad and the mini. Apple has four products in the iPad lineup. While Apple decided to keep the price of the iPad 2 at $399 Apple dropped the price of the IPad mini to $299. The newest iPad, the new full-size iPad Air is thinner and lighter than the previous full-size iPads and much more powerful. The new iPad Air will sell at $499, while the second new iPad tablet the iPad mini with Retina display will sale for $399. By Apple dropping the price on the iPad mini this move should help Apple maintain market share with it strong competition. Strong competitors like Google and Amazon have recently dropped the prices on their popular tablets. Android tablets such as Google and the Kindle Fire have been gaining on Apple over the past year with the lower prices and higher performance.The Kindle Fire HD sold for $139, this exclusively affected Apples revenue. The price decrease p ut Apples base iPad mini closer to the price of Google and Amazons top of the line tablets. Apple chose to drop the price of the original iPad mini tablets to maximize their profits with the competition. Overall by dropping the price, this will draw more individuals to the Apple iPad mini and increase Apples marginal revenues and profitability. This will keep Apples market share in competition with Google and Amazon without sacrificing too much profitability. Although, there are several competitors in this market such as The Kindle Fire, The Windows Tablet, Galaxy Table, etc. none are able to continue the standards that the iPad will carry. With all of our advancements in technology, research, investments, etc. we continue to be in high demand. If our corporation continues to be technological innovative and productive then we will continue to grow andconsistently re-invent. We will be more profitable, growing and will remain cost efficient when it comes to manufacturing and produci ng the iPad. Based on the current market conditions, our competitive market analysis concluded that the Apple iPad will be an extremely productive and very successful.ReferencesDuhigg, C., Barboza, D. (2012, January 25). In, China, Human Cost Are Built Into an IPad, p. The iEconomy. Internal Factors Costs . (n.d.). Retrieved from http//www.knowthis.com/pricing-decisions/internal- factors-costs Reisinger, D. (2013, October 22). IPad 2 Survives iPad Air, Still cost $399. CNET, p. . University Of Phoenix. (2010). Economics, viii Edition. Retrieved from University Of Phoenix, ECO365 website. What is an Apple iPads Elasticity of Demand?. (2012). Retrieved from http//applecoeconomics.wordpress.com/2012/05/17/what-is-an-apple-ipads-elasticity-of-demand-9/