Essay on Economics for Managerial Decision Making Market...

Economics for Managerial Decision Making: Market Structure Quasar Computers is a market leader for establishing their business around the Neutron notebook computer. Competition and the need to differentiate have required management to make profitable decisions to increase sales and revenue streams. The company must focus on aligning strategic variables with pricing and non-pricing options while considering how to rebrand Quasar to sustain marketability and a competitive force. Strategic Variables Quasar established their business in 2003, to make the initiative to produce a notebook that took over worldwide and was considered a monopoly. Consumers will know Quasar’s products uniqueness and the style of the computer once introduced†¦show more content†¦Computers have to be upgraded to make the laptops or notebooks faster and easier to use. The supply and demand of selling these notebooks to clients incurs a reduction of cost to spike sales. Once Orion Technologies entered the market in 2006 with a notebook similar to Quasar Computers the market became oligopolistic which â€Å"involves only a few sellers of a standardized or differentiated product† (McConnell Brue, p. 177). Table 3 shows the market shares for Quasar Computers in an oligopolistic market. Table 3 Oligopolistic Market Shares Market Shares for Neutron Market Shares ($) 38M Revenue ($) 908M Profit ($) 123M Quasar Computers can face the competition. In oligopoly’s the revenues, market shares, and, profits depend on both price and the competition while the differential in the price will determine the market shares (â€Å"Economics for managerial decision making: Market structures:, 2013). Both Quasar and Orion are in deep competition but has to make modifications to earn profits. Pricing Strategies Quasar computers will need to choose a pricing strategy that will work otherwise their profit margins will be impacted. An important step is deciding how Quasar should price their products. Competition based strategy is one of severalShow MoreRelatedEconomics for Managerial Decision Making: Market Structure1650 Words   |  7 PagesEconomics for Managerial Decision Making: Market Structure Introduction As legend and reality have it, Steve Jobs and Steve Wozniak started Apple Computer in a garage in Cupertino, Calif., in 1976. From those humble beginnings, and through extreme market swings, Apple Inc. has become the most valuable company in the world. â€Å"Given the company’s unbelievable innovation over the last few years, and the subsequent mountains of cash that it has earned as a result, the likely catalyst for the stockRead MoreEssay Simulation Game1556 Words   |  7 PagesPorters Five Force Model 4 Conclusion 6 References 7 Strategy Simulation Game Introduction This paper explains the use of economics in managerial decision making based on the simulation. 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