FIN 370 Week 3 Learning Team Assignment Essay

Learning Team Current Market Conditions Competitive digest This paper exit give a short history and descriptions of apples I Pad minicomputer. It result besides give factors that strike take up, supply, and balance wheel charges in the market placeplace. Issues that apple brasss that affect its competitiveness provide also be addressed. Lastly, this paper leave behind identify the long term positivity of the iPad including, cost cinch of demand, technological innovation, and cost structure. Steven Jobs and Steven Wozniak were friends in high gear school, which overlap like interested in electronics. They designed what would become the apple and on April 1, 1976, apple Computer was born. This is an Ameri stern based company located in California. apple specializes in design advancing, and the barters electronics, computer softw atomic number 18, and computers. Apple is accredited for some of the most popular crossroads of the modern world of technology such(p renominal) as iPod, iPh wholeness, iPad, and iTunes.Apple has expanded its sell stores to fourteen countries worldwide with 408 retail store not to mention 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 tabloid designed minicomputer that was released in 2010 by Apple. This device has equipped with Wi-Fi and has a multi- bushel screen. There are five different versions of this particular tablet. Each has the susceptibility to play music, record videos, a camera function, browsing the web, e-mailing. Games, GPS navigation system, and neighborly networking can also be downloaded to the device. A market is as a collection of consumers and retailers of a specific merchandise or service. Demand is the certain volume that consumers are prepared and able to obtain. Quantity necessitated is the demand at a specific amount and is symbolized as the demand curve. The supply of a reaping is the bar that manufacturers are prepared and capable to convey to the market the sale ofthe product.The market can be analyzed by duplicate 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 change in outlay does not necessarily mean that the demand will change. It is much likely for the amount demanded will affect the footing. If the price is changed the curve will gesture 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 wangle with Apple, entirely recognized their position just could not compete. The competition combated Apple by creating smaller tablet that is an unfamiliar place for Apple. This creation worked and caused Apple to lose sales. The competitors rapidly established their place in the market. cost elasticity of demand is an issue that our nerve, Apple faces that affects our competitiveness and long-term shekelsability 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(prenominal) 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 thwarted to the three types of iPads their pricing, capabilities and memory storage, it was determined that if the price of the iPads increased then the consumers whitethorn not get them (What Is An Apple Ipads Elasticity Of Demand?, 2012). The price elasticity of demand tells us that although apple is very technological innovative, scarce as it relates to price elastici ty of demand the quantity does not point (all the changes, modifications, additions, advancements, and so forth) 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 s uch as the Apple iPad. Is the improvement to something that already exists. Technological innovation will constantly collapse 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 saucyfangled items to the market that will steady intrigue the consumers and adapts to their technological needs. Cost mental synthesis (TC = FC + VC) is the be of production, the identification of how be associated with the production of a good or service are distributed throughout the process The cost structure consists of primed(p) be, variable star costs and total cost (University Of Phoenix, 2010, pp. 283-285). According to Internal Factors be (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 divided 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, often salary). The major factors affecting fixed costs are (1) Changes in business organization, (2) Changes in technology applied, (3) Sale of manufacturing equipment and (3) Decisions to undertake 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) Directly associated with creating the product (electricity to run an c rowd 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 to the highest degree Apples products start to emerge web sites begin to contrive which suppliers are likely to win Apples business.Getting a contract from Apple can lift a companys value by millions of dollars. On October 22 Apple released a alteration of new hardware and software. Apples new iPad is clearly commission on improving the iPad product profit margin, turn also maintaining it unassailable market share. One of the ways Apple can maximize their profit is by reducing the price of the original iPad mini. Another recommendation that can maximize the profit for Apple is to also make radical improvements to the large iPad and the mini. Apple has four products in the iPad lineup. While Apple decided to contain 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 move the price on the iPad mini this move should help Apple maintain market share with it strong competition. beefed-up competitors like Google and Amazon have recently dropped the prices on their popular tablets. mechanical man tablets such as Google and the inflame chivy have been gaining on Apple over the past year with the lower prices and higher performance.The Kindle Fire HD sold for $139, this alone affected Apples revenue. The price fall pu t 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, in that location are several competitors in this market such as The Kindle Fire, The Windows Tablet, Galaxy Table, etc. none are able to uphold 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, maturation and will remain cost efficient when it comes to manufacturing and producing the iPad. Based on the live 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 atomic number 18 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, eighter from Decatur 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/