Market Equilibrium
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Market Equilibrium Process Paper
ECO/561
Market Equilibrium Process Paper
With the world of technology evolving as rapidly as it has been for the past 10 years or greater, print media companies have noticed a shift in the demand for hard copies of what consumers can now receive electronically. Before the Internet became as widely accessible and an integral part of everyday life, newspaper and magazine sales and subscriptions were at an all time high. With inventions such as the iPhone and other smartphones alike, tablets, iPads and computers, the market for print media has declined and will continue to decline as technology giants provide more up to date and convenient options for consumers.
The Law of Demand simply states that when prices increase, sales decrease and when prices decrease, sales increase as customers are more attracted to lower rates. This is evident with decreasing sales for newspapers and magazines. Facing competition from web-based companies that offer entertainment for free, business managers in the print media field have to come up with new ways to attract customers. What makes a consumer pay for what someone else offers for free? Recognizing a change in market trend, business managers have to develop a strategic plan to remain competitive and in business. Print media outlets attempted to keep up with market trend and offer subscriptions via tablets and smartphones, but the financial gain was not enough to cover the loss. The Law of Supply states that when a price of a product rises, the supplier manufactures more in an attempt to make more revenue, however in the case of print media, the Law of Supply works in reverse. Since the demand for print media is low, the production is low as well to avoid a surplus. A surplus in magazines or newspapers would further the financial loss experienced by print companies as there is no real way to recoup those costs. Having an electronic subscription as well as a hard copy can help to...
ECO/561
Market Equilibrium Process Paper
With the world of technology evolving as rapidly as it has been for the past 10 years or greater, print media companies have noticed a shift in the demand for hard copies of what consumers can now receive electronically. Before the Internet became as widely accessible and an integral part of everyday life, newspaper and magazine sales and subscriptions were at an all time high. With inventions such as the iPhone and other smartphones alike, tablets, iPads and computers, the market for print media has declined and will continue to decline as technology giants provide more up to date and convenient options for consumers.
The Law of Demand simply states that when prices increase, sales decrease and when prices decrease, sales increase as customers are more attracted to lower rates. This is evident with decreasing sales for newspapers and magazines. Facing competition from web-based companies that offer entertainment for free, business managers in the print media field have to come up with new ways to attract customers. What makes a consumer pay for what someone else offers for free? Recognizing a change in market trend, business managers have to develop a strategic plan to remain competitive and in business. Print media outlets attempted to keep up with market trend and offer subscriptions via tablets and smartphones, but the financial gain was not enough to cover the loss. The Law of Supply states that when a price of a product rises, the supplier manufactures more in an attempt to make more revenue, however in the case of print media, the Law of Supply works in reverse. Since the demand for print media is low, the production is low as well to avoid a surplus. A surplus in magazines or newspapers would further the financial loss experienced by print companies as there is no real way to recoup those costs. Having an electronic subscription as well as a hard copy can help to...