Systems analysis and modeling: A macro to micro approach with multidisciplinary applications Essay

The recent organise wars amid industrious audio industries and supermarkets have been full to the consumers as well as their respective industries. It can be argued that charge wars enable customers to save their money, increase consumer utility and lead to not bad(p) competition. as yet customers go away only enjoy the welf ars of damage wars in the short-run, only when the feature change in the long run. monetary value wars lead to lessen of prices, but it is essential to evaluate the effect of price decrease on consumer spending. The rule of this paper is to examine the effect of price wars between unsettled predict industries and the supermarkets.Findings and Analysis Price wars eliminate marginal players and alter the structure of the market. In case of price wars, few competitors exit be go awaying to autograph an unattractive market that greatly rely on down(p) prices for victor, and modest competitors leave the market because they be unable to su pport profits. In round cases, some firms might dominate in the market due to price wars for example, acquisition of Macro foods by Woolworths in 2009. Price wars have a long-term effect on consumer preference, since consumers are left in a market with fewer players with greater authority. This case mostly applies to supermarkets. Price reduction by retailers weakens the brand investment made by producers (Wallner, 2001).Price wars between spry ring industries and supermarkets have short-term benefits to the consumer, but they result to decrease in price which has a long-run impact to the consumer. Price cuts emanating from price wars alter consumer expectations for discounting and affect future pricing. Price reduction besides affects the aptitude of product distribution to small outlets much(prenominal) as bottle shops, local anaesthetic stores and convenience outlets. The price war between Britains dominant supermarkets has shifted into expeditious market with major sup ermarkets reducing their prices by half. On the former(a) hand, the extend to unstable phone companies maintained that they offered the best price in the market. The supple phone companies have announced price increase over the ratiocination few weeks however supermarkets slashed down the price for meandering(a) phone service. The supermarkets are able to take the opportunity represent of cutting the prices because they will gain back by selling risque margin goods (Eweje & Perry, 2011). thither is price discrimination in job rates because different expeditious phone industries have different tarrifs. The pressure exerted in the markets desexualises the mobile phones to queue their prices to attain market equilibrium.In order to understand the accepted small and macro- commerce operations existing in the mobile phone industries and the supermarkets, it is imperative to give way the social, political and economic structures. The reduction of interest rates by the polit ical science has greatly reduced the level of unemployment. In addition the acquire ability of clients will increase because of the improved pecuniary military position. However, the possibility of huge financial uncertainty will affect consumer spending especially while purchasing bonus products (Boyd, 2001)Analysis on menstruum European demographics shows that there is an increase trend of ageing population. thither is confused possibility of old propagation to go shopping in the supermarkets as compared to the young generation. The net profit literacy is at 65 years, although growing population considers online shopping as efficient. Macro purlieu is external to the business sector and they are uncontrollable factors that are beyond control by any nerve (Forstater, 2007).Appropriate macro milieu will enable supermarkets and mobile phone industries to make effective policies and strategies to make changes as well as coping up with changes in the current market. Micro e nvironment on the early(a) hand are the internal factors that mobile phone industries and supermarkets can control.Micro environment have drive impact to an signalment because it directly affect its zsuccess and operations. Micro environment will affect an organizations capacity to serve its clients. Therefore, before supermarkets and mobile phones industries decide on any corporate strategy, they need to appraise their micro environment. Micro environment include all departments existing in an organization and each of these department has a great effect on an organization marketing decisions. The other aspects that are included in micro environment are the publics and the customer market. Thus, mobile phones industries and supermarkets should understand their micro and macro environments so that they can make appropriate strategies that will affect both their success and operations (Wan, 2006).The law of demand and supply will booster supermarkets and mobile phone industries to settle on a market equilibrium calling price. In an attempt to run from high calling cost from other mobile service providers, customers ends up in the supermarkets which charges low prices to its mobile customers. However, supermarkets place price premiums on basic items so that they can substitute the low prices which had attracted the customers. It can be argued that, price wars benefit customers in the sort-run, but in the long run they greatly affect the customer (Krugman & Wells, 2009).The cost of mobile phones have fallen to such a level that if the trend carries on, mobile service will be more affordable to much larger parts of the acclivitous markets population. The price wars ensure that both the supermarkets and mobile phone industries keep checking on their prices so that they can maintain their profits as well as making profits. The supermarkets continue to increase their promotions while other rival companies such as Tesco hold that they will continue cosmos aggr essive. There are various factors that have led to the reduction in price of mobile phones. The cost of mobile phones is brought down by heavy(a) subsidies from the government, high levels of competition as well as efforts from local manufacturers who set on selling entry-level phones. The price of mobile phones has been brought down by the expect growth of markets (Wessels, 2006). lively manufactures are focusing to sell their phones in the rising markets such as Philippines, Nigeria and India. Mobile phone manufactures have a great opportunity for the gaudy phones to substitute feature phones in the emergent markets.Mobile phones manufactures face the problem of lack of operator subsidies in the emergent markets so that they can support the entry of these nickel-and-dime(prenominal) mobile phones. As the cost of mobile phones continues to reduce, it is anticipated that emerging markets will receive an increasing military issue of cheap phones in future. However, there ar e different approaches of entry of cheap phones to the emerging markets. For example, it was anticipated that there will be a growth of 95% of smartphones in India in 2013, while it was 46% in Brazil. In Brazil the import duties was expected to hamper the cheaper supply effect. By examining the current situation, mobile phones manufacturers who will be able to cope up with the ridiculous competition in the modern market, will secure a hard stance in the future mobile phone market (Eweje & Perry, 2011). applied science advancement has enabled manufactures to device life-fitting mobile phones that are cheap and affordable. Mobile phones are a very crucial aspect in human nonchalant lives because it enabled people to communicate, socialize and to spur development. Smartphones technology continues to be more plethoric in developed countries however, the drop in price of phones has drastically changed the situation since smartphones are now more accessible in the emerging markets. fl ashy mobile phones are very helpful to the emerging markets, since they will help to revolutionalize the lives of health-care professionals, farmers and educators in the developing nations. Lower price will definitely make smartphones more accessible in emerging products, but there is low internet connectivity in developing countries. Low internet penetration is a major hindrance of entry of cheap smartphones in emerging markets (Forstater, 2007).The high outlay of data plans hinders various people from accessing internet through their phone. There is also high rate of inflation and unemployment in emerging markets which is other hindrance of entry of cheap phones in these markets. Though mobile phones are essential in modern day lives, most people in emerging markets struggle to make their ends meet. In the efforts of developing cheap mobile phones in emerging markets, the issue of insufficient net infrastructure should also be addressed. Mobile network operators should focus on sustainability, where they should develop business structures that permit them to earn returns by bringing data networks to emerging markets (Worthington & Britton, 2006).The network connectivity can be provided by companies like Google however, the cost imposed to the local economy would be huge. The attempt of brining solutions to the issue of network models in emerging markets, would have adverse effects to the local ecosystem as well as devastating impact to the mobile network operators who provide employment, and to the government who desexualise remunerated for network licenses and use the funds for economic development. Apart from benefiting from cheap mobile phones, emerging will benefit from the internet connections plans that are fair(a) to be implemented. The emerging markets will get internet through micro-cook signals and fiber optics. The local governments will benefit from revenue collected from internet licenses.Conclusion Price wars between mobile phone indus tries and supermarket will benefit both the consumers as well as their respective industries. The price wars will lead to an increasing trend of the cost of mobile phones. The reduction of cost of mobile phones will enable more access of phones in emerging markets. Smartphones are more prevalent in developed countries where they have sophisticated the lives of farmers, health-care professionals among other people thus encouraging economic development. Emerging markets such as India, Nigeria and Philippines will receive more phones because manufacturers believe that there is a large market in developing nations. Mobile manufacturers have contributed a lot to development in the emerging markets for devising cheap phones that are affordable however, they should also develop the internet model in the emerging markets. Lastly, cheap mobile will be of great benefit to the emerging markets since they will improve communication among other benefits.ReferencesBoyd,D.W. (2001). Systems analys is and modeling A macro to micro approach with multidisciplinary applications. San Diego, CA Academic Press.Do consumers authentically benefit from the supermarket price wars? (n.d.). Retrieved from http//www.theage.com.au/it-pro/do-consumers-really-benefit-from-the-supermarket-price-wars-20110408-1d7g6.htmlEweje,G., & Perry,M. (2011). line and sustainability Concepts, strategies and changes. Bingley, UK Emerald Group.Forstater,M. (2007). Economics. Chicago Chicago Review Press.Krugman,P.R., & Wells,R. (2009). Economics. hot York Worth Publishers.Supermarket price war moves into mobile phone market Business The Guardian. (n.d.). Retrieved from http//www.theguardian.com/business/2008/aug/20/telecoms.supermarketsWallner,K., & centralise for Economic Policy Research (Great Britain). (2001). 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