Sunday, April 26, 2020
Non Pricing Strategy
Simulation overview Quasar computer has won populace and reputation for its innovation of the revolutionary wonder, the Ã¢â¬ËNeutronÃ¢â¬â¢. The product high speed microprocessor feature makes it outstanding. History marks that the company enjoyed monopoly from 2003 to 2006.Advertising We will write a custom report sample on Non Pricing Strategy specifically for you for only $16.05 $11/page Learn More As such, this paper simulation advances to explore strategic variables that will that will sustain Quasar computer after several years of monopoly following assumption of market structure changes. Non pricing strategies Non pricing strategies undertaken by Quasar Computers were geared to distinguish its products from those offered by the competitor. As such, it is overbearing that the digital company apply the unsurpassed strategies for the notebook in an effort of maximizing its revenue as well as enjoying pure monopoly. The pure monopoly does not disqu alify other market structures. Quasar computers undertook an innovative approach to the build a high class technology on their notebooks. This is because the company coined the first production of all-optical notebook computers (McConnell, Brue Flynn 2009). The management had two options to operate competitively. One is to have Ceres, which will present a distinguished model with less investment in the new product features. Furthermore, premium pricing will be realised as well as low bullÃ¢â¬â¢s eye of volumes. Undertaking to explore the little amount of unutilised capacity will lead to the price per unit cost to be at its lowest. As such, applying twelve million units of production capacity not utilised brings down the production costs of both Neutron and Ceres. As such, adopt a brand advertising strategy that may take up to $200 million. On the other hand, go ahead to build Neutron at present advertising budget. In essence, spending two hundred million on aggressive advertising to launch again would propel the sales to two million more units simultaneously. In effect, enhance use of excess volume by aggressively encouraging demand to reach optimum quantity (Pugel, 2009).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Managerial Decision Making for each Market According to the economic concept, the market structure is composed of firms producing identical goods and services. As such, the managerial decisions will cover the production of these products to achieve the common business goals (profits maximization, cost minimization) in the face of surrounding competitors acting independently to take up their business by giving better services. Monopoly The best managerial decision making for the firm as a monopoly that will sustain the profits will be to assume that Marginal Cost equals Marginal Revenue (MC=MR rule). For instance, prices should be reduced to $2,450, a point where MC = MR as per the year 2004. Subsequent advertising campaign led to large revenue sales to a total of $2.74 billion. Oligopoly This marks end of monopoly (entry of Orion Technologies) and the management anticipates fierce competition, a downward sloping demand curve. As such, prices will begin to reduce corresponding to decreasing demand. As such, the management will strategize its investment on promotional activities for brand awareness and confirmation. At the same time, focus on improving and streamlining productivity. In addition, the management will focus on protecting its market through competitively setting its price (McConnell, Brue Flynn 2009). Monopolistic competition This market brings more competitors to the industry. As such, one loses market shares and straining to earn profits. Management has to diversify its production to introduce a new product such as Ceres as well as invest in brand development of neutrons. Again, div Perfect market competition Pr ofits can barely be increased and costs minimized and the company market share depleted. The management will take decisive action to stimulate demand in an effort to increase the market share in the short run. As such, the company may set $ 200 million to advertise for new product with a view of exploiting fresh target industries (Pugel, 2009). References McConnell, C. R., Brue, S.L., Flynn, S.M. (2009). Economics: Principles, problems, and policies, 18th ed. New York: McGraw Hill/Irwin.Advertising We will write a custom report sample on Non Pricing Strategy specifically for you for only $16.05 $11/page Learn More Pugel, T. A. (2009). International Economics 14th ed. New York: McGraw Hill/Irwin. This report on Non Pricing Strategy was written and submitted by user Abdullah H. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.