Current Market Condition Competitive Analysis

Topics: Supply and demand, Cost, Variable cost Pages: 8 (1660 words) Published: April 19, 2014
Current Market Conditions Competitive Analysis
John Smith
ECO/365
January 1, 2020
University of Phoenix
Jane Doe
Current Market Conditions Competitive Analysis
Internet streaming alternatives for traditional television and radio are becoming increasingly popular. Companies such as Netflix, Hulu Plus, Pandora, Spotify, and the like are used in the everyday lives of a large percentage of Americans. Here at Team A Corp. we want to develop a device to bring all of these Internet alternatives back to the television. The problem is that not every consumer has a state of the art television, complete with HDMI connections. Our solution is a small box that acts as a bridge between any television and the Internet. We call it The Globe. At present, the Roku streaming player is the market leader in streaming entertainment devices for the TV ("Roku", 2013).  The Roku has had success in this field for a few years. The California based corporation was founded in 2002, led by Anthony Wood. Roku is Wood’s sixth company in which he founded, fittingly the term “roku” means “six” in Japanese. The privately held company currently employs around the 170 people. Roku has had many revisions of the product but the newest version Roku 3 is set up to nullify the need for cable. Offering over 700 channels and providing the user with the ability to make their own channels, this could be a new wave. Apple, Amazon, and Google, three of the largest corporations in America, have already come out with their versions of Internet streaming devices. The Roku is available on the market around the $100 range making it affordable to most consumers. The Roku is very easily customizable, meaning you can have a setup that is comfortable for your own viewing needs as opposed to using a predetermined interface. It is imperative that Team A Corp. develop a competitive product that can truly compete in this market both with sales price and corporate revenue. The development of The Globe can bring advantages to our company as a way to gain ground among the ranks of media service providers. With low production costs and minimal market competition, developing The Globe may prove profitable as competition to the Roku. Factors Affecting the Market

Many factors affect demand, supply, and equilibrium prices in a given market and the market for Roku is no exception. The company produces a supply in order to respond to the demand created by the consumer. Roku partnered up with major providers such as Netflix, Pandora, iTunes, MOG, Hulu Plus, Amazon Instant Video and others to bring internet based content to television with a simple box offering variety of movie selections, TV programs, music, games, sports, and etc. The number one competitor in the market is Apple TV, which is mainly due to their well-known name. Apple TV is strictly tied to iPhones and iPads, therefore limiting the available content. Their primary advantage is Airplay which allows the consumer to watch the desired program on their iPhones, iPads, or any other Apple device and then continue watching it on their television. The black box needs to find ways to overcome challenges along the way and the one at hand is ensuring that YouTube provides an official channel for them, because currently millions of users access YouTube through a third party provider. In order to stay ahead in this fast evolving technological era it is important to constantly analyze the market and ensure that consumer’s demands are met. Factors that may influence demand include consumers desire to own the product, affordability, and a consumers willingness to pay for the product. The company must be able to respond to the consumers’ demand by ensuring that The Globe product is supplied at an affordable cost by taking into consideration the costs associated with production. In a healthy marketplace, an equilibrium price is established by analyzing supply and demand. However, when there is an increase in...


References: Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill.
Roku. (2013). Retrieved from http://www.roku.com/
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