This is because of new paper free era, people like to communicate or addressed via E-mail. It is more convenient and easy to use and manage; it is also cost effective because in electronic communication we don’t need paper, staff and extra office room to handle this department. In electronic communication it is easy to communicate, manage, and track documents. It also gives us quick reply facility. In these days latest technology changed the culture’s demand people like paper free documentation in these days.
Alone in U.S.A sales of stand-alone fax machines are well below their peak of 3.6 million in 1997, this shows fax machine demand decreased and some companies were planning to withdraw manufacturing fax machines.
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Demand will decrease for fax machines
4. FILM and Camera
Report shows13 % growth in sale of digital camera market, while on other hand sale for film camera declined over half. Which mean 50 % decline in film camera sale as compare to last year, and sale for digital camera was 6 million in 2006.
Analogue Camera Sales - 0.60 million = -54%
Digital Still Camera Sales- 6.17 million = +13%
These figures clearly show the digital camera took over old film camera. Which mean a huge decline in films because film camera has been not sold then there is no demand for film as well.
In this report we also found in 2005 growth was 118 %.
Although the demand for high tech digital camera will increase but, The figures are also predicting that market are going towards maturity, which will lead the demand of digital camera to slow down, and by 2011 market will start to shrink. In 2006 growth rate for digital camera was 15% but in 2007 it slow down to 8%.
According to IDC, the shipment of digital camera (DSLR) planed at enthusiast and professionals are expected to stay sturdy, with average increment of about 9% to 8.5 million units in 20011
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Demand will increase for digital camera.
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Demand will decrease for film
5. Video rented from retail outlet
The video took over radio. Now because of new technology the video rental industry is declining. According to figures shown below the demand of rented video is decreasing and will keep decreasing in future too.
According to Carmel, since 2001 we have seen 19 % shrinks in the movie-rental industry In the early 1990s, there were about 70,000 stores around the country that rented movies. Today, there are about 18,000.
In next two years Video cassettes will be vanished in total. Research suggests. More DVDs than ever were sold last year, but at the same time price of DVDs fall down 11% which shows that the level of buyer spending fell overall.
The factors that are affecting this industry are, broadband internet which allow customer to download or watch online movies, multimedia piracy of new movies and database of movies available online. Customer also does not want to pay rent and the charges for keeping the rented movie for longer time because on internet most of the multimedia is free. Also the cable which is offering more movies on press of button.
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Demand will decrease for video rental
6. Pay-per-view television programming
According to Virgin Media report they have achieved 33 % growth in on-demand programs in less than a year and this will obtain total views of on-demand content to 314 million over 8 months. Half of Virgin Media's 3.5 million TV clients are watching on-demand frequently.
Pre pay view revenues grows 16.4% from 2004 mostly because of movie and event purchases through the Comcast on-demand service, representing the second following year of PPV revenue growth of more than 15%.
PricewaterhouseCoopers released a study which reveals that U.S T.V distribution business will grow to $123.5 billion at the growth rate of 5.4 by 2011.
The figure above clearly show increase in demand of pay-per-view program, factors behind this growth are; access to cable, and variety of program available to consumer at the touch of button and these programs are available 24 hours and the quality of display is very good, and the technology which allow individual user to forward or rewind whatever he wants. The package which includes phone and internet service along T.V cable, marketing is also playing big role in increase of demand.
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Demand will increase for pre pay program
SUPPLY
1. Crude Oil
Crude oil demand is always increasing and will keep growing in future, and supply for crude oil will increase as well, Chinese and Asian growth also playing a vital role to increase in demand, there is no proof that can show that high crude oil prices have led to decrease in its utilization. There is also no replacement of crude oil. For sure world has enough oil to supply,
In year 2006 demand for crude oil was 84.5 million barrel and in year 2008 87.1.
OPEC Member Countries have all the time attempted to regulate their crude oil supplies to get better equilibrium between supply and demand. OPEC's always intend to uphold stable supplies of oil to consumers. Crude oil has no substitute so this is also a main factor to increase in supply.
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Supply of crude oil will increase
2. Computer memory chips
Figures reveal that computer demand is increasing and this will lead to computer memory chips supply will also increase in future. According to IDC, Dell recorded a 21.3 percent growth in worldwide PC shipments in 2008, report also show that only in U.S Company grew by 15.6 %.
Latest development in operating systems also demands for big size computer chips, this will give demand boost in computer memory chips and to meet with the demand memory chips supply has to increase in future. From December to January, the spot price for a 512Mb 533MHz DDRII DRam chip declined slightly from $6.25 to $5.92. This decline will continue by 29 %, said by market observers the main factor behind this is low manufacturing cost.
Other factors to rise in demand are; affordability of Computers and Laptops which has an annual growth rate of 10 %. Computers are main requirement of all business because of latest technology and there are modest organization in the world who can manufacture computers, these factor increases the demand on the whole, and indirectly this increases in sales will raise supply of computer memory chips. Staggering use of internet also give boost in sales of computers. Certainly the supply of computer memory chips will grow in the future.
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Supply of computer memory chips will increase
3. Hotel rooms
The research figures clearly shows that demand of hotel room will increase and to meet with this demand supply will increase as well, the major factor behind this growth is tourism.
In recent times the world tourism board renowned India as the number-one country in terms of estimating of growth in tourists with business travel. A big population of tourist will come from U.S to India. From a sales and marketing observation, the top 15 global accounts of the United States need for the Indian market more than 100,000 room nights a year. The U.S. market is that big. Tourist business income in India is $100 billion. By 2018, it's expected to be $373 billion.
Tourism is one of the largest industries in the UK, this industry generated 85.6 billion pound in year 2006. In year 2007 32.8 million overseas visited U.K, a 0.2% increase as compare to 2006.
The World Tourism Organization estimates that growth in the Middle East's tourism industry will be 50% higher than the world's average by 2020.Growth in Middle East tourism is projected to reach an annual 7.1 % until 2020, beside the world's average of 4.1 per cent.
Dubai, is likely to see an expected 18,000 to 20,000 further hotel rooms by 2010, a boost of nearly 100 % on the number of rooms exist presently.
if we analysis the above figures it will help us to drive the answer that supply of hotel room will increase because of high demand, the main reason to raise the demand is tourism industry, and new developments and attraction for tourist and easy access to travelling.
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Supply of hotel room will increase
4. Fast food outlets in emerging market
In these days Eating out have became trend. This is now part of everyday life. McDonalds is world’s one of the largest and fastest growing company. McDonald serves 38 million customers through 23,000 restaurants in 109 countries.
In 2007, 12 % growth has been found in McDonald’s working in Middle East and globally 6 % growth recorded and now after this growth McDonald is planning to open new stores in Middle East and increasing the number of stores from 52 to 100.in near future. The market is soaked in the US and Europe because there are McDonald's outlets in every place and corner there, while on other hand With the expansion of new shopping malls and residential areas in Middle East we expect to open more outlets in the UAE.
The supply and demand for McDonald is increasing in Middle East, the reason behind this is people like taste, and new development is going on more shopping mall are going to open and Middle East is hottest tourist place and for McDonald Middle East is new market. Population income in high and they can easily afford to buy fast food items.
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Supply of fast food outlets will increase
5. Credit cards issued by financial institutions
The recent economy crisis forced financial institution to be more restricted for lending money to people. The supply of credit cards issued by financial institutions is decreased. The main factor behind is recent economy crisis. After the mortgage crisis, In July American express which is 4th largest credit card issuer is facing $176 million loss along Citigroup in credit card.
The Internet lending giant, Egg, decided to cancel the credit card facilities of 161,000 customers. This will lead them to bad credit history and will effect on lending money in future which will also affect on credit card supply.
Interest rate of credit card also plays important role for less demand companies offer credit cards with interest charges of up to 69.9%.
Fraud and hidden charges also play a vital role to decrease the demand for credit cards
In 2007, total card fraud losses increased by 25% to £535 million
All the factors above showing that people demand for credit card and difficult criteria to get credit card is affecting on its supply and it will decrease in future.
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Supply of credit cards will decrease
6. Laptop Computers
The supply of laptop will increase in future because of huge demand of laptops and it will keep growing. The reasons to increase in demand and supply are new development of software and requirement to install and use that software. This will keep demand and supply in growth. At retail outlets, Vista is now pre installed on 95% of all desktop PCs and 91 % of all laptops, according to CNET News.com. In 2007, worldwide PC shipments have grown by 10 percent and will clear $200bn for the year, according to Gartner.
Intel, who makes processors for laptop if we look at their sales figure, record sales of laptop chips boosted the firm's net income to $1.6bn (£798m), up from $1.28bn a year ago.
Quanta Computer, the biggest contract notebook maker, shipped 2.4 million laptops in May and 2.8 million in June as compare to May. These strong growth figures points towards high demand of laptops and to meet that demand supply has to increase.
the above figure clearly shows that the supply of laptop will increase in future, factors which will cause this increase are software requirement to install, cheap prices which allow customer to buy, and technology Intel is producing latest technology and innovation at affordable price.
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Supply of laptops will increase
References
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N.Gregory Mankiw (2004) “Principle of economics” 3rd Edition
Harvard University Thomson south-western
- Sloman & Norris (1999 ) “Macroenonomics”
Prentice Hall Australia
Angus Maddison (2002) “The world economy” A Milliennial perspective
OECD 2001
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Besanko.D & Dranove. D& Shanley .M (2000) “Economics of Strategy” 2nd Edition. John Wiley & sons, Inc
BIBLIOGRAPHY
- Thomas Sowell (2004) “Applied Economics thinking beyond stage one”
- Basic Books.
- Angus Maddison (2002) “The world economy” A Milliennial perspective
- OECD 2001
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Besanko.D & Dranove. D& Shanley .M (2000) “Economics of Strategy” 2nd Edition. John Wiley & sons, Inc
- Angus Maddison (2002) “The world economy” A Milliennial perspective
- OECD 2001
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COURSE WORK
OF
STRAEGY AND INOVATION
MARKETING
SHAHZAD ANWER
0332GSGS0808
Tutor: ELLIE SEMSAR
COURSE: MBA AUG (2008)