Economics For The Global Manager

Sample Solution

 

Slide 1: Company

The company I chose is Apple Inc., a multinational technology company that specializes in consumer electronics, computer software, and online services. Apple is one of the world's most valuable companies and is considered to be a leader in the technology industry.

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    Slide 2: Market Structure The market structure that best describes Apple is monopolistic competition. Monopolistic competition is a market structure in which there are many sellers, each selling a differentiated product. This means that there are some similarities between the products offered by the different sellers, but there are also some differences. In a monopolistically competitive market, each seller has some control over the price of their product. This is because the products offered by the different sellers are not perfect substitutes. However, the sellers in a monopolistically competitive market do not have as much control over the price of their product as a monopolist. Slide 3: Economic Concepts Apple applies a number of economic concepts to compete within the monopolistically competitive market. These concepts include:

• Product differentiation: Apple differentiates its products from the products of its competitors through branding, design, and features.
• Pricing: Apple uses a variety of pricing strategies, including skimming, penetration pricing, and price discrimination.
• Advertising: Apple invests heavily in advertising to create awareness of its products and to differentiate them from the products of its competitors.
• Distribution: Apple uses a variety of distribution channels, including its own retail stores, online retailers, and third-party retailers.

Slide 4: Equilibrium The market for Apple products is in equilibrium when the quantity of products demanded equals the quantity of products supplied. In equilibrium, the price of Apple products will be equal to the marginal cost of producing those products. Slide 5: Surplus or Shortage If the quantity of products demanded is greater than the quantity of products supplied, there will be a shortage of Apple products. This means that some consumers who want to buy Apple products will not be able to do so. If the quantity of products demanded is less than the quantity of products supplied, there will be a surplus of Apple products. This means that some producers of Apple products will not be able to sell all of their products. Slide 6: Competitors Two successful competitors of Apple are Samsung and Google. Samsung is a South Korean multinational conglomerate that specializes in electronics, telecommunications, and machinery. Google is an American multinational technology company that specializes in Internet-related services and products. Samsung and Google are both major players in the technology industry. They offer a variety of products that compete with Apple products, including smartphones, tablets, and laptops. Samsung and Google are also both major players in the online advertising market. Conclusion Apple is a company that operates in a monopolistically competitive market. The company uses a variety of economic concepts to compete in this market, including product differentiation, pricing, advertising, and distribution. The market for Apple products is in equilibrium when the quantity of products demanded equals the quantity of products supplied. There can be either a shortage or a surplus of Apple products depending on the demand and supply conditions. Two successful competitors of Apple are Samsung and Google.