These algorithms both help the airline forecast demand and set prices. The result is that they should deliver to the airline the optimal combination of ticket sales and ticket prices to maximize revenue (Knapp, 2003)
Within the global computer industry, there is a common value chain for the provision of quality and valuable products to the consumers at minimal costs. Hewlett-Packard, Dell, and Lenovo adopt and implement similar value chain with the aim of providing valuable products to the consumers and fight stiff competition within the industry (Hongni, 2010)
This is vital for the assessment of the structure of the industry. Use Porter's five forces as a guide to talk about the supply side of the industry The power of suppliers (Porter, 2008) within the personal computer industry is quite high
Because it is true that "in standard microeconomic theory, the concept used for assessing the strength of substitutes and complements is the cross elasticity of demand" (Hill & Jones, 2010), the availability of substitute and complementary products within the market exerts a strong affect on the elasticity of demand. The presence of comparable alternatives to an existing good provides consumers with alternatives in terms of pricing, which means an increased availability of alternatives results in a highly elastic market, one in which minor changes in relative pricing between competitors can produce drastic shifts in demand on the part of consumers (Baye, 2010)
Expanding the parameters of the demand curve can produce accurate calculations of the point price elasticity of demand across any range of time that financial records have been compiled. There is a wealth of evidence to suggest that the price elasticity of demand becomes a larger negative figure when a product's price is increased, because the price sensitivity exerted by consumers typically grows when prices rise (Elci, 2012), which is why companies like Harley-Davidson and Zipcar must carefully consider the cost/benefit ratios of any potential change in established product price points
By offering a viable "substitute for car ownership, especially for those who can commute to work and shopping by taking transit, walking or bicycling," car-sharing has become an increasingly popular option for residents of urban areas and others who utilize automobiles at rate lower than the average. According to a car-sharing case study published by the Harvard Business Review, "Zipcar launched its first 10 locations in Boston in 2000 & #8230; (and) since 2004, Zipcar has experienced 100-percent-plus growth annually in its membership base," (Hart, Roberts & Stevens, 2003), and this accelerated rate of growth is astounding for a company that was essentially proving that demand existed within this relatively new market
Conversely, when a strong sense of brand loyalty is firmly established among a subset of consumers -- as is the case with Harley-Davidson riders -- even the presence of several available substitutes will not alter this inelastic demand (Salvatore, 2006). Because it is true that "in standard microeconomic theory, the concept used for assessing the strength of substitutes and complements is the cross elasticity of demand" (Hill & Jones, 2010), the availability of substitute and complementary products within the market exerts a strong affect on the elasticity of demand
Establishing the most profitable price point for a product is central to assuring the economic viability of its continued production. The fact that "the price elasticity of demand measures the responsiveness of quantity demanded to changes in the price of the product itself, holding constant the values of all other variables in the demand function" (Hirschey, 2009) makes this a valuable predictive tool for financial analysts and executive management
The fact that "the price elasticity of demand measures the responsiveness of quantity demanded to changes in the price of the product itself, holding constant the values of all other variables in the demand function" (Hirschey, 2009) makes this a valuable predictive tool for financial analysts and executive management. Another interesting aspect of this crucial managerial economics concept is that the price elasticity of demand associated with a given commodity is dependent chiefly on the availability of substitutes, and also on the duration that the quantity response to the price change is calculated (Salvatore, 2012)
The fact that "the price elasticity of demand measures the responsiveness of quantity demanded to changes in the price of the product itself, holding constant the values of all other variables in the demand function" (Hirschey, 2009) makes this a valuable predictive tool for financial analysts and executive management. Another interesting aspect of this crucial managerial economics concept is that the price elasticity of demand associated with a given commodity is dependent chiefly on the availability of substitutes, and also on the duration that the quantity response to the price change is calculated (Salvatore, 2012)
By manufacturing affordable, high-quality motorcycles using American parts and labor, Harley-Davidson is also able to take advantage of the dominant value set of its core consumer demographic, as middle-aged males typically prefer their high-dollar purchases to be of products that are domestic in origin. The company also harnessed the power of nostalgia and patriotism, designing their motorcycles with an inherently "retro" and "American" appeal (Wagner, 2003) which aligned with its previously established industry as the quintessential domestic automobile manufacturer
At which point, the calls would grow for deregulating the industry, resulting the passage of the Airline Deregulation Act. (Cento, 2009) In the next three years, the increasing amounts of global competition on a number of different routes will continue to grow
This model would provide stability to the industry, as earnings would remain stable because: the fares and any kind of merger or new route had to be approved by the Civil Aeronautics Board. (Morrison, 1995) However, under this model, competition was limited and fares were higher
If the price of crude increases; these futures contracts can be sold, helping to mitigate the effects of higher fuel prices. (Vasigh, 2008) Labor costs are one of the biggest factors that will be affecting the airline industry well into the future
Despite this growth in revenue there continues to be a consolidation of manufacturers in the coffee industry, from 297 in 2004 to 275 in 2008. The consolidation of manufacturers has not impacted the total employment level however, with 12,496 people employed in 2004, rising to 13,467 (U.S. Department of Commerce)
Bargaining power of suppliers Suppliers have an effect on the industry through their ability to raise prices or reduce the quality of goods or services they provide. There are very few airline suppliers globally these are Airbus and Boeing this means that the suppliers have a high power since they are limited and hence control the market since the demand for their manufactured products is high (Rahman,2010
It is a subsidiary of the Emirates group, which is a public international conglomerate that has its base in Dubai. Emirates airlines came into existence in the mid 1980s owing to the fact that the Gulf Air cut back its services to Dubai (Wakeling, 2011) It is among the largest airlines in the Middle East that operates with a large number of flights
People are the driving force behind innovative thinking and knowledge sharing; any organization lacking in this department will suffer financially. A third core competency is data management (Aung & Heeler, 2001) and service development
Organization would also not be able to grow, which may inhibit competitiveness in the industry. Proficient people management capabilities in the form of efficient human resources management is a second core competency necessary for all computer firms (Cappelli & Crocker-Hefter, 1993)
For purposes of this paper a computer firm is defined as one that provides technological, it or computer related services and products to the public. Capabilities Critical for Computer Firm to Perform Why Capability is Relevant to Computer Firm Impact on Computer Firms if Incapable of Performing Function Ability to generate or create new intellectual property and technology innovation that would lead to advances in communications technology and information or knowledge sharing (Gartner, 2007)