Description
Select a new, realistic good or service for an existing industry, preferably an industry you current work in or one in which you are interested in working.
Develop a 1,400-word evaluation of pricing strategies available producers of your selected product. This will include statements about the market structure and the elasticity of demand for the product, based on text book principles and real world products under development.
- Identify the market structure of the industry (monopoly, oligopoly, monopolistic competition, pure competition).
- Determine elasticity of demand for various quality ranges of the product based on textbook theory and judgments about the degree of luxury vs. necessity represented by various brands (e.g. a luxury car vs an economy car).
- Determine how pricing relates to elasticity of demand for competing models.
- Explain how changes in the quantity supplied as a result of pricing decisions might affect the company's marginal cost, marginal revenue, and market share as production volume rises. What reaction might be expected by other producers if one producer changes its pricing strategy?
- Determine strategies that a company might use to develop product differentiation and market segmentation. What alternative non-pricing strategies are available? What alternative non-pricing strategies can be used to increase barriers to entry?
- Discuss how producers might alter the mix of fixed and variable costs to support their pricing strategy.
Format the assignment consistent with APA guidelines.
MY CURRENT INDUSTRY IS LAW ENFORCEMENT....SO I WAS THINKING BODY CAMERAS COULD BE THE GOOD DISCUSSED SINCE THERE IS SO MUCH INFORMATION OUT THERE.
Explanation & Answer
Hello,Here is the answer, feel free to consult if you need any clarification.Thank you.
Running Head: MARKET STRUCTURE AND PRICING
Market Structure And Pricing
Name
Institutional Affiliation
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MARKET STRUCTURE AND PRICING
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Identify the market structure of the industry (monopoly, oligopoly, monopolistic
competition, pure competition).
Body cameras are tools that are used in citizen surveillance and public accountability. Due
to the current series of controversial police brutality incidents that have increased in the United
States, the need for increased transparency among the law enforcers has increased. This has led to
the increase in the market of body cameras, promoting one of the leading manufacturer of police
body cameras TASER Company.
TASER body camera producing company operates under monopoly type of market
structure. Previously TASER Company had been best known for its production of stun guns.
However, due to the recent need for police accountability, TASER identified this as an opportunity
for growth and expanded its line of production to producing body cameras. This has made this
company to become a market leader among police body camera makers.
According to the recent reports, TASER Company is the becoming one of the major
American manufacturers of body cameras whereby the company has got 16 U.S cities purchasing
its body cameras. This has enabled this company to enjoy the largest share of the market and
therefore enjoying its high profits. Recent reports show that the company continues to enjoy a large
share of markets profits and is projected to continue expanding in future (Patulski, Soper, Wilson,
2016).
The prices of the stock of TASER’s body cameras has gone upward which resulted from
sealing an agreement with the high-profile police departments in Los Angeles and New York City.
Analysts, therefore, believes in the TASER company has an opportunity for growth. The
opportunity is estimated to occur as a result of the growing appetite for police body cameras which
is continually growing and has not shown any sign of reaching its full potential. Up to the present,
MARKET STRUCTURE AND PRICING
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TASER remains a dominant market leader in the development and manufacturing of body
cameras. Its Monopoly status arises from the company’s significant barriers to entry given the
underlying technology.
Determine elasticity of demand for various quality ranges of the product based on textbook
theory and judgments about the degree of luxury vs. necessity represented...
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