Mkt 421 Week 4 Market Structures Simulation
Market Structures Simulation Paper
Market Structures Simulation Paper
The University of Phoenix – Simulation exercise regarding the company – Quasar who manufactures the “Neutron” Computer. The company was granted a three year monopoly due to its’ patented rights in the year 2003 (University of Phoenix, 2009). The Four market models/structures that the learning team is expressing knowledge of are: Pure Competition, Pure Monopoly, Monopolistic Competition and Oligopoly. The strategic variables that helped Quasar Computers to make a profit and keep the company in business throughout the life of the company were based on different variables.
Quasar is a thriving company who has decided to put a price on the “Neutron” computer. With Quasar being a monopoly which is describes as: a company who corners the market by being the only seller of the product by blocking the entry of other companies/possible competitors. Product differentiation is not a problem because there are no other companies to compete with. (McConnel, (2009). …show more content…
According to the simulation the price of $2,550 is where profit equals 1.29 billion. The best way to promote the product is through advertising. The most reasonable advertising budget would be $400 million in the year 2003 and increased to $600 million in the year 2004 through an investment in brand building. (University of Phoenix, 2009) Pricing Strategies – 2004. A reduction in price will help to maximize profits. The top executives know that by targeting major corporations, the product will stay on the market and its’ demand will be great based on the speed capabilities being five times the speed of the conventional micro-ship
Market Structures Simulation Paper
The University of Phoenix – Simulation exercise regarding the company – Quasar who manufactures the “Neutron” Computer. The company was granted a three year monopoly due to its’ patented rights in the year 2003 (University of Phoenix, 2009). The Four market models/structures that the learning team is expressing knowledge of are: Pure Competition, Pure Monopoly, Monopolistic Competition and Oligopoly. The strategic variables that helped Quasar Computers to make a profit and keep the company in business throughout the life of the company were based on different variables.
Quasar is a thriving company who has decided to put a price on the “Neutron” computer. With Quasar being a monopoly which is describes as: a company who corners the market by being the only seller of the product by blocking the entry of other companies/possible competitors. Product differentiation is not a problem because there are no other companies to compete with. (McConnel, (2009). …show more content…
According to the simulation the price of $2,550 is where profit equals 1.29 billion. The best way to promote the product is through advertising. The most reasonable advertising budget would be $400 million in the year 2003 and increased to $600 million in the year 2004 through an investment in brand building. (University of Phoenix, 2009) Pricing Strategies – 2004. A reduction in price will help to maximize profits. The top executives know that by targeting major corporations, the product will stay on the market and its’ demand will be great based on the speed capabilities being five times the speed of the conventional micro-ship