If global demand suddenly surges, it could create a supply shortage for Current market conditions competative a raw ingredients needed to produce the product.
Consumers would simply switch to other soft drink brands that offer lower prices for highly similar products. These two firms have built exceptional brand loyalty and have contracted with fast food chains to serve their products exclusively.
On the other side of the equation, if the sweetener is shown to have negative heath effects it will quickly drive down demand.
The amount of labor can be represented by the human capital that the firm needs to function properly. Factors Affecting Variable Costs, Including Productivity The single most important variable cost is the raw stevia sweetener used to manufacture this new product.
ECO Microeconomics — Online Understanding the competitive forces within a market is essential for the successful rollout of a new product.
Stevia is a natural zero-calorie sweetener that has become popular among heath food consumers. The company will need to monitor supply closely and have a mitigation plan if raw materials become unavailable.
If the company can gain confidence with consumers about a healthy soft drink product it could lead the massive growth in revenue in this emerging sector.
In the ultra-competitive century, Apple has been able to remain relevant in the PC industry by ensuring that the company continually modifies its products and introduces new and advanced products while its competitor companies such as Dell remain dominant. At this point in time, the sweetener has not had a long history of use in the Western world and potential health drawbacks are not well understood.
As a more healthy option than full sugar and diet soft drinks, stevia could help the company retain customers that are seeking better lifestyle choices. In other words, if a good is perfectly inelastic, the demand will NOT change when the price changes. In order for Coca-Cola to launch a new product it will need to increase the amount of labor to manufacture this new product.
As mentioned previously, if demand suddenly surges for stevia sweeteners, the price of raw materials could skyrocket.
This longstanding brand has a massive amount of capital that can be invested into these groundbreaking markets. Type of Market and Analysis of Competitors and Customers. If shareholders approve of this direction for the company, the capital employed may be reinvested into expenditures to meet this goal.
Coca-Cola already has a well-established manufacturing base that can produce soft drink products across the globe. A slight decrease in productivity may occur to train employees about the new product, but otherwise, productivity should remain virtually unchanged.
Factors That Affect Demand, Supply, And Equilibrium Prices Supply and demand are forces that are always working to reach an equilibrium point in a competitive market. Currently, the plant is primarily grown in South America and is not considered a staple crop. In the soft drink market, goods are considered very elastic.
The company will need to monitor these startups and take steps to acquire them if they start experiencing rapid growth. According to research, the company made over 66 billion dollars in the year by selling famous PC brands su The twenty-first century is rather a hotbed of possibilities for social innovation that provide a vast range of opportunities for organizations to competitively differentiate themselves even in market sectors that have numerous social leaders and many established providers who make it difficult to disrupt longstanding equilibriums and uncover untapped potential.
Productivity among the labor force is a minimal concern for this project.
Technological Innovation Ultimately, Coke is attempting to create an innovative soft drink that will solve the obesity crisis in America. If research shows that the sweetener is a healthier alternative to cane sugar is will cause demand to rise significantly.
One such company that has regularly taken advantage of competitive analysis is Apple Inc. The soft drink industry is highly competitive and there are numerous firms seeking to gain market share.
The main force effecting demand for this product will be consumer sentiment about stevia-sweetened products. Many Americans are looking to improve their diets to combat the persistent obesity problem plaguing the country.Write a 1,word analysis of the current market conditions facing your product, making sure you address the following topics: Define the type of market in which your selected product will compete, along with an analysis of competitors and customers.
Current Market Conditions 2 Current Market Conditions Competitive Analysis Introduction Over the last several years in the United States, there has been such a radical dip in the national economy.
Because of this, more and more people and companies are scrambling for any financial scraps they can find%().
The critical points of researching the current market include knowledge of any issues that may affect long-term profitability as well as how the company can compete in the market. With successful research and analysis, the company can consider ways in which they can maximize their success and profit-making potential in their new market.
Current Market Conditions Competitive Analysis: Apple, Inc. ECO/ February 23, Current Market Conditions Competitive Analysis: Apple, Inc. Apple, Inc. is a multinational corporation that creates consumer electronics, personal computers, computer software, commercial servers, and they distribute media content.
Their leading product is a smartphone called the iPhone, which began selling 88%(52). Current Market Conditions Competitive Analysis Current Market Conditions Competitive Analysis Paula Collins, Candesse Ediger, Kristi Shimmin, Chadrick J.
White ECO September 2, Krissa Wrigley Current Market Conditions Competitive Analysis Determining the most appropriate product to launch into the market is a difficult process.
2 Current Market Conditions Competitive Analysis This Week 3 paper will serve as an analysis of current market conditions facing Apple, Inc. Throughout this paper I will identify the type of market the product will compete in along with an analysis of the competitors and customers; I will analyze comparative advantages and international trade.Download