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Business Proposal - Research Paper Example

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It considers various economic factors that influence the outcome of the market performance of the firm in question. The reality of…
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Business Proposal
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Business Proposal

Download file to see previous pages... Digital book reader and synthetic listening technology seeks to enter the market amidst tight economic barriers and market conditions that requires critical analysis of relevant economic analysis concepts that include market structure and the elasticity of demand. The firm is focused on delivering customer-focused product that will be considered affordable, efficient and reliable. In its bid to turn tables on the existing competition, it calculates its move in respect of the market structure in which it falls. This is seen to affect it’s pricing and the general non-pricing competitive strategy in the digital book reading and listening industry.
Digital book reader and synthetic listening technology has relatively larger number of competitors. Some of the alternative firms in this industry include Amazon Inc., and other firms that can convert the printed word into audio. This firm will therefore fall in a monopolistic market structure where competition is significantly high. It seeks to differentiate its product by creating an authentic voice in audio conversion of the written text to the customer. Although there exists products that can also transform text to voice, they sound inhuman and this will give Digital book reader and synthetic listening technology an opportunity to create its own design and completely different experience to the user (Barclay, 2012). It differentiated product aspect will give it an upper hand in giving a price that is based on marginal cost. The increasing substitutes of similar products bring in the concept of elasticity that this product must consider. For instance, there are competing products that also convert textbook writings into digital audio form, which presents a close substitute to Digital book reader and synthetic listening technology. This means it will be operating in a highly elastic market where price changes carry significant consequences in terms of its ...Download file to see next pagesRead More
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