How will pricing relate to elasticity of your product?

iWATCH

Market Structure

The Apple iWatch is centered in the smartwatch market. The market structure in which the product lies is oligopoly. Oligopoly refers to a market structure that is dominated by a few sellers. This is because the smartwatches are products which are produced by a few large companies, and every contribution of every company is considered substantial enough to be significant in the market. In addition, the companies in the market are cautiously aware of how rival companies react to change and particularly in association to price. This particular market structure is distinctive in the sense that the company’s pricing as well as output decisions will also integrate the perceived or anticipated reactions of the competitors. For instance, in this case, the pricing and output decisions of iWatch will consider the anticipated reactions of other company products such as the Sony Smartwatch (Salvatore, 2015).

Elasticity of the product (iWatch)

The elasticity of the demand offers a measure of the amount of quantity that is demanded in response to changes in the price. A good or a product is said to be elastic if the quantity of the product that is demanded changes in a substantial manner in response to the changes in price. With regards to the iWatch, to start with, it is a luxurious product. The elasticity of the product is inelastic, which basically implies that an increase in the price of the iWatch product would barely have any impact on the quantity that is demanded for the product itself (Salvatore, 2015).

How will pricing relate to elasticity of your product?

According to the Apple Store website, the price of the iWatch starts at $349. For the purpose of calculation, let as assume a price of $350. As stated above, the elasticity of the product is inelastic and therefore will barely have any effect on the product demand if there is any change in price. The following graph will illustrate how pricing will relate to elasticity of the iWatch. For instance, let’s say Apple makes the decision to increase the price of the iWatch from $350 to $450.

Price

$450

$350

Q2 Q1 Quantity

As can be seen, the pricing changes made for the iWatch have very minimal impact on the quantity demanded for the product (Salvatore, 2015).

How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue?

The major costs that come about with the manufacture and production of the iWatch include labor costs, manufacturing costs, raw material costs, research and development costs, and also advertising and marketing costs. The pricing decisions undertaken by the company will without doubt have an impact on the marginal cost as well as marginal revenue as it affects the total cost and also the total revenue. In accordance with Mudida (2003), marginal revenue refers to the change in total revenue arising from the sale of an additional unit of output. The same case applies with marginal cost where it is the change in total cost with regards to the change in the output produced. The graph above indicates that a change in price has minimal to no impact on the output produced. For instance, assume that the quantity change decreased from 110 products to 100 products due to the change in price. The total revenue will be assumed to be the price retailed for every product which means the total revenue changes from $350 to $450.

The marginal revenue can be determined as follows:

Marginal revenue =

= (450-350) / (110 -100)

= 100/10

=10

As can be seen the price changes will have very minimal impact on the marginal revenues as well as the marginal costs. This is because as for the costs, the company would not be largely affected with the production of 10 less watches or the production of 10 more watches.

Besides your pricing decisions, what are your suggested non-pricing strategies? What non-pricing strategies will you use to increase barriers to entry?

Non-price competitive strategies are marketing strategies that are employed by companies with the purpose of differentiating their products or services from the other rival products on the basis of features such as design. The companies can also differentiate their products being offered in different ways such as consumer focus and quality of services and other aspects other than price. Aside from pricing decisions, there are a number of non-pricing strategies suggested for this business proposal. The main non-pricing strategy to be used for this product is advertising. Mass media advertising and marketing in an extensive manner is a strategy that can steer the product into success. Being in an oligopolistic market structure, this strategy will prove to be most effective as the business will concentrate more on how the iWatch as a product is superior to the other products and also why spending on the product itself will become a better investment to the consumers. Because the market has very few competitors selling the same product, the company will be able to distinguish itself from other products simply by showing off its superior quality through advertising (Nielson, 2014).

The main non-pricing strategy to be used to increase barriers to entry is the use of the Apple brand name. Apple has already distinguished itself in the market by offering superior products to the consumers such as iPhone, iPad and the rest; this gives the products a higher scale in terms of being retailed in the market (Scott, 2011). Another strategy is product differentiation. Apple, the selling company of the iWatch, endeavors to increase and intensify market demand for its products by using the strategy of product differentiation. The products of the company have at all times been created and designed to be futuristic and advanced in comparison with the products of its peers. In spite of high levels of competition, Apple has prospered and thrived in generating demand for its products, handling the business power over prices through product differentiation and guaranteed brand loyalty around the unveiling and promotion of fresh products. By concentrating on consumers enthusiastic to pay more and sustaining a premium charge at the cost of unit capacity, the company also established a simulated entry barrier to company rivals (Nielson, 2014).

How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy?

The changes in the business operations could alter the mix of fixed and variable costs which are in line with the strategy. Increased mass media advertising and marketing increases the amount of variable costs in a huge way. At the same time, loyalty cards being offered to the consumer, that in the end provides discounts to them, increase the variable costs. Every business being proposed or already in operation needs to cover both its variable costs as well as fixed costs to generate a profit, the ultimate goal of every business. The variable costs are the costs that increase as the sales made by the company increase; for instance, by having additional labor and also raw materials. This implies that the price set by the company ought to be higher than the variable costs incurred in the manufacture and production of the iWatch (Salvatore, 2012). For instance, if for every product manufactured by the company, $100 is for fixed costs and $120 is for variable costs, then the total costs incurred by the company for the manufacture of every product is a total of $220. This implies that as more and more watches are manufactured, the variable costs incurred by the company increase while the fixed costs remain the same. This is due to additional raw materials, labor and time for manufacturing the products. The same case would apply for the manufacture of fewer products than anticipated. The company would incur more costs in the long run as the fixed costs would remain the same.

Current global economic conditions and their effect on local macroeconomic indicators for your good or service

The past number of months have been increasingly challenging for the international economy; this has brought about difficult global economic conditions. The fluctuations are to a great magnitude due to bigger volatility and improbability, and they bring about a higher risk for the current global economy. The fast deterioration includes the prices of oil, rapid adjustments in exchange rates, having the United States dollar appreciate and weaken against other currencies such as the Euro, the uncertainty of the economies such as Greece and also the conflicts between nations such as Russia and Ukraine, and also the Middle East (The Conference Board, 2015). These economic conditions have had an impact on local macroeconomic indicators for goods as well as services. One good example is the retail sales indicator which is imperative and significant to foreign exchange traders for the reason that it indicates the overall strength of spending of the consumers and also the level of success of the retail stores. In particular, this is a beneficial aspect for the reason that it is an opportune and apt indicator of comprehensive consumer patterns for spending that are altered for seasonal variables. It can be employed to offer prediction for the performance of other significant lagging indicators and also to evaluate the instantaneous course of an economy (The Conference Board, 2015). Another indicator is the Consumer Price Index (CPI) which is the most significant indicator with regards to the level of inflation of a nation. The change in the economy of the nation has had an impact on the purchasing power of the U.S. dollar not only within the nation but also in the global markets as well. This can have an impact on the purchase of the iWatch as it is a luxurious good.

The Economy’s Stage in the Business Cycle

The economy of every nation experiences different business cycles in its life. The business cycles take into consideration the high level phases and the low level phases of the economic activities within the nation. There are four phases or periods which a business cycle goes through and these are economic expansion, recession, recovery and lastly trough. The time frame of these different economic stages might vary from one case to another (The Economic Times, 2013). Taking a look at the current statistics, the United States economy is presently undergoing a recovery or expansion. The Gross Domestic Product (GDP) of the nation has been increasing for the past few years as indicated by the Bureau of Economic Analysis (2015). The statistical information shows that the economy of the United States is at the economic expansion phase of the business cycle.

How current credit market conditions affect your planning or operating decision for the iWatch

The current credit market conditions do in fact have an impact in terms of the decisions for planning or operating for this good. As a result of the recession, there was tightening of the credit markets and issues concerning the accessibility of credit in the United States. This implies that a number of consumers might find it hard or face several delays in attaining the required financing and money that is necessary for purchasing the Apple products. It is imperative to note that the iWatch is operational with the current iPhones such as iPhone 5s, 6 and 6 plus. The tightening of the credit market will make it much harder for the consumers to attain funds for both the watch and the phone as they are complementary goods. In a number of instances, these delays are expected to cause consumers to postpone their orders with the company. A continuous increase in these cancellations might negatively impact the business of the company (FedGazette, 2009). The recession of 2008 which brought the fall of companies in the United States caused consumer confidence to decline and therefore makes it much harder for consumers to spend, especially with luxurious goods such as the iWatch.

References

Apple Website. (2015). Watch. Retrieved 12 June 2015 from: http://store.apple.com/us/watch

Bureau of Economic Analysis. (2015). Gross Domestic Product (GDP) Graph. United States Department of Commerce. Retrieved 26 June from: http://www.bea.gov/newsreleases/national/gdp/gdp_glance.htm

Fedgazette. (2009). How have current credit conditions affected your business, community or industry? Federal Reserve Bank of Minneapolis. Retrieved 26 June from: https://www.minneapolisfed.org/publications/fedgazette/how-have-current-credit-conditions-affected-your-business-community-or-industry

Mudida, R. (2003). Modern Economics. Nairobi: Focus Books Publishers.

Nielson, S. (2014). Why innovation could be the key to Apple’s growth. Market Realist. Retrieved 12 June 2015 from: http://marketrealist.com/2014/01/apple/

Salvatore, D. (2012). Managerial economics in a global economy. New York: Oxford University press.

Scott, G. (2011). Is Brand Loyalty the Core to Apple’s Success? Forbes. Retrieved 12 June 2015 from: http://www.forbes.com/sites/marketshare/2011/11/27/isbrandloyaltythecoretoapplessuccess2/

The Conference Board. (2015). Global Economic Outlook 2015 – Key Findings. Retrieved 26 June from: https://www.conference-board.org/data/globaloutlook/

The Economic Times. (2013). Real Business Cycle Theory. Retrieved 26 June from: http://articles.economictimes.indiatimes.com/2013-04-11/news/39065904_1_business-cycle-shocks-phases


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently
 

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY!!!

order custom essay paper

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.

image

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

image

Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE
image

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.

image

Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

Categories
All samples
Article review
Thesis/Thesis chapter
Research paper
Article review
A Holistic Response to Crime Victimization
Master's
Law
9
View this sample
Thesis/Thesis chapter
Post Covid-19 Economic Recovery
PhD
Economics
60
View this sample
Research paper
Final Case Analysis: Organizational Ethical Dilemmas
Undergrad. (yrs 3-4)
Business Studies
8
View this sample
Research paper
Communicable Disease
Master's
Nursing
8
View this sample
Research paper
Mental health
Master's
Nursing
10
View this sample

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.

0+

Happy Clients

0+

Words Written This Week

0+

Ongoing Orders

0%

Customer Satisfaction Rate
image

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success

image

We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.
image
image

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now
image

error: Content is protected !!
1
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code UNRIVALED