Quasar Simulation

Topics: Monopoly, Economics, Competition Pages: 9 (3185 words) Published: October 30, 2011
Simulation Quasar
Following an economic analysis on the company Quasar Computers, based in the computer industry to understand pricing strategies and market competitiveness. First, identify the pricing strategies and price in each market structures: monopoly, oligopoly, monopolistic competition and perfect competition. Second, we describe the relationship between technology, research, development and economic efficiency and then justify the investment in these areas to maximize the economic benefits in each of the market structures. Third, identify potential risks and negative consequences of the selected solutions in different markets. Fourth, explain the global market will face more competition Quasar. And fifth, we discuss trade policy to understand how to keep Quasar Computers in a competitive market. Quasar Computers

Quasar The company has pioneered Computers laptops "notebooks" in good condition. Quasar is evaluating a number of operational strategies of the business to expand the variety of conditions in each of the markets. Therefore, it has the backing of a dynamic team of senior executives of the company, which we will present below: • Robert Spencer: Vice-President of Marketing

He wants "Quasar Computers" is a company focused on marketing their product. • Jane Sarandon: Vice-President of Finance
She is always looking for ways to reduce costs and increase the attractiveness of the company to shareholders. • David Pinto, Vice President of Technology
A brilliant technician, he is the "brains" behind the three-member team that designed the optical equipment. It can be found in the lab working to improve its amazing creation. • Rajat Mehta: Marketing Consultant

An independent consultant has been hired by the company to the extent of their knowledge of marketing in various industries.

Pricing Strategies and No Price

In 2003, Quasar Computers has launched its first product fully optimal laptop "notebook" marks "Neutron" which is the result of innovative efforts. Processor and memory is a high-speed drivers using optimal high speed, which is almost five times faster than the existing "microchip" based on computers. The team "Neutron" uses energy saving technology and best rechargeable batteries can last up to three days of continuous use. Quasar has a patent on the best equipment which prevents others from copying their technology or access to its production and thus enjoys a monopoly market for the next three years. One of pricing strategies to maximize profit and ensure compliance with the rules of monopoly market MR = MC is the market to set a price. Therefore, it was determined a price of $ 2.550. Because you get more profit. Revenue would have a total of 13.50 and 12.18 Total Cost of Total Profit for a of 1.29, yielding 5.3 units. Then, in a journey to Europe to realize that 20 passengers have only a model "Neutron" and find that despite its exclusive product should invest in advertising. Therefore, you must set an advertising cost for 2004. $ 400 million advertising budget was increased to $ 600 million in costs for advertising, because it could produce as many units and in turn the gain would be greater. There would be 7.1 units with a Total Profit of 2.53. Investment in advertising campaign was a success and increased sales, the model "Neutron" began to be used by middle managers and above. The increased demand has not yet been optimized production processes. As for 2005, will focus on streamlining its manufacturing facilities to save costs. Because they have a problem of waste during the production process, which is increasing the cost of production. Therefore, it was determined to invest in improving our production process and machinery to reduce these losses to $ 2,200. Revenue would have a total of 20.7 and a Total Cost of Total Profit 18.53 for a of 2.21, yielding 9.4 units. As a result this will cause an overall reduction in unit costs and optimize our production capacity. He chose...
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