Read the case and assignment, and answer the question. don't find any Assignment

Read the case and , and answer the question. don't find any resource from Internet or other book - Assignment Example The force is only significant when certain suppliers within the industry can differentiate their products to improve the quality of the industry’s products. However, the supplier bargaining power can influence the industry since not all suppliers possess all the movies available in the movie rental industry. Potential new entrants pose a strong competitive force within the movie rental industry. The dynamic nature of markets makes it easy for emerging firms to penetrate the market to fill any identified gaps within the industry. Existing firms do not have any control over the changing markets. New entrants increase the competitive forces within the industry. Similar firms in the industry compete on the basis of ‘business rivalry’ among themselves. The strength to attract customers among multiple sellers in the industry is the strongest competitive force. Customers are satisfied by the product that satisfy their needs, and maximizes their utility. Movie libraries compete to attract customers with the aim of maximizing revenue. The firm with the largest customer base becomes the most preferred firm among the existing and prospective customers. There are numerous changes about where and how movie rentals can be sourced. Movie rentals can be obtained from cable, fiber-optic, and satellite television providers. Consumers can connect their television sets to the internet to stream movies from online providers. Consumers are at liberty to obtain movie DVDs by; The internet has proven to be limitless within the movie rental industry. Advancements in technology have forced Netflix, Hulu Plus, and Amazon Prime Instant Video to resolve to online streaming as opposed to the traditional pay-per-view rentals. The gradual transition from pay-per-view and Video on Demand (VOD) rentals to unlimited internet streaming is a driving force in the movie rental industry. The dynamic nature of the movie rental industry

Micro & Macro Economic Analysis - Electronic Arts Coursework

Micro & Macro Economic Analysis - Electronic Arts - Coursework Example Similarly if one variable falls, the other is destined too as well. Today In the modern world, the theory of demand and supply seizes more emphases of business analysts in decision making. Demand and Supply theory in the modern world of fierce competition enfolds a great deal of attention for strategic planning to achieve competitive advantage over rivals. The phrase â€Å"Demand and Supply† was first used by James Denham-Steuart in his book named â€Å"Inquiry into the Political Economy† which was published in 1767 (Steuart Denham et al, 1966). The theory discussed above is supplemented by the characteristics of the market in which the company exits. Conventionally there are four basic types of market structures. Perfect competition: such markets have many buyers and sellers, none being able to influence prices. Oligopoly: several large sellers who have some control over the prices. Monopoly: single seller with considerable control over supply and prices. Monopsony: single buyer with considerable control over demand and prices. The company with its gaming products operates in the Oligopolistic environment. Where there are several large producers but have a tendency to dominate major markets across the globe and influence some change in prices (Sloman, 2010). The concept of elasticity comes into play here. Elasticity is the measurement of how changing one economic variable affects the other. Elasticity of demand can be of three basic types; Price elasticity of demand – measuring the dynamics of the quantity demanded by the change in price. Income elasticity of demand – measures the dynamics of quantity demanded by changes in consumer income. Cross elasticity of demand – measures the responsiveness of quantity demanded by changes in price of another good. The concept in itself is a complete strategy. When ascertaining price of a product these elasticity’s should be kept in mind (Sloman, 2010). A detailed analysis of the Micro and Macroeconomic environment of Electronic Arts Inc is conducted below in detail, to explain the subject without obstruction. MICROECONOMIC ANALYSIS The demand and Supply theory as discussed above are amongst issues one needs to cater before planning product launch, indulging in price war s and budgeting for marketing. As the demand and supply curve has serious implications on the pricing strategies being adopted, there should be reasonable understanding of the subject matter before decisions are made. For the purpose of explaining the subject effortlessly, let’s consider the example of the world’s largest video game developer Electronic Arts, Inc. Electronic Arts (the company) is America’s largest developer, marketer, publisher and distributor of video games. The company has a well diversified portfolio of products and geographical presence all over the globe. Under such circumstances the demand and supply implications are more severe for planning purposes as different conditions will be faced by the business analyst across geographical horizons. (Electronic Arts, 2011) Demand and supply has remained unchanged and unchallenged till date. There has always been a gap in the demand and su