The Tablet Computer Market: Demand, Structure, and Competition
2011
Lashgari Persia (student)
EC180
12/12/2011
Tablet Computers
Contents
Page No. * Introduction to the Report 3 * Factors that Affect the Demand for Tablet Computers 3/4 * Measuring and Determining the Elasticity of Demand 5/6 * Pricing Discrimination and its Limitations 7 * Associated Costs (Fixed & Variable Costs) with Providing Tablet Computers 8 * The extent to which there are Scale Economies and How they Occur 9 * Minimum Efficient Scale & Diseconomies of Scale 10 * Structure of the Tablet Computer Market 11 * Barriers of Entry to the Market 12 * Conclusion 12 * Bibliography 13
Introduction
In this report I will be analysing the market for tablet computers to see whether or not there is a gap in the market to launch a new tablet computer.
Methodology
I will be critically reviewing the computer tablet market as a whole identifying if there is a Demand for this product and what may affect the demand. I will evaluate the costs associated with manufacturing and selling this product and look into the structure of the market to see if there are any barriers that will prevent us from entering.
Factors that Affect the Demand for Tablet Computers
Law of Demand: (“all else being equal or other things the same”) Ceteris Paribus
As price increases we demand less, as price decreases we demand more.
Without demand there is no business. Demand is affected by consumer’s tastes, the number and price of substitute goods, the number and price of complementary goods, income, and expectations of future price changes.
Income is a major fact in consumer behaviour as consumers seek to maximise utility (satisfaction) from their limited income (how much disposable income they have).
This graph shows the relationship between the price of a good and the quantity of the good demanded over a specific time period. P1 shows the
Lashgari Persia (student)
EC180
12/12/2011
Tablet Computers
Contents
Page No. * Introduction to the Report 3 * Factors that Affect the Demand for Tablet Computers 3/4 * Measuring and Determining the Elasticity of Demand 5/6 * Pricing Discrimination and its Limitations 7 * Associated Costs (Fixed & Variable Costs) with Providing Tablet Computers 8 * The extent to which there are Scale Economies and How they Occur 9 * Minimum Efficient Scale & Diseconomies of Scale 10 * Structure of the Tablet Computer Market 11 * Barriers of Entry to the Market 12 * Conclusion 12 * Bibliography 13
Introduction
In this report I will be analysing the market for tablet computers to see whether or not there is a gap in the market to launch a new tablet computer.
Methodology
I will be critically reviewing the computer tablet market as a whole identifying if there is a Demand for this product and what may affect the demand. I will evaluate the costs associated with manufacturing and selling this product and look into the structure of the market to see if there are any barriers that will prevent us from entering.
Factors that Affect the Demand for Tablet Computers
Law of Demand: (“all else being equal or other things the same”) Ceteris Paribus
As price increases we demand less, as price decreases we demand more.
Without demand there is no business. Demand is affected by consumer’s tastes, the number and price of substitute goods, the number and price of complementary goods, income, and expectations of future price changes.
Income is a major fact in consumer behaviour as consumers seek to maximise utility (satisfaction) from their limited income (how much disposable income they have).
This graph shows the relationship between the price of a good and the quantity of the good demanded over a specific time period. P1 shows the
Bibliography: Begg, D. & Ward, D. (2007) Economics for Business. 2nd ed. Berkshire: McGraw-Hill Education Engadget (2011) Global Smartphones [Online]http://www.engadget.com/2011/10/28/samsung-claims-top-spot-in-global-smartphone-shipments-for-q3-20/ [accessed 6th December 2011] Sloman, J., Hinde, K. & Garratt, D. (2010) Economics for Business. 5th ed, Essex: FT Prentice Hill