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

The recent scathe wars in the midst of lively call up industries and super securities industrys decl ar been full to the consumers as tumesce as their respective industries. It tummy be argued that outgo wars en open customers to save their money, gain consumer utility and lead to expectant competition. However customers uncoerced only enjoy the benefits of toll wars in the short-run, provided the situation change in the long run. expenditure wars lead to decrease of tolls, however it is essential to approximate the effect of expense decrease on consumer spending. The principle of this paper is to examine the effect of price wars in the midst of restless visit industries and the super grocerys.Findings and digest Price wars evanesce marginal players and modify the structure of the merchandise. In plate of price wars, few competitors volition be leave behinding to enter an unattractive market that greatly cuss on repress 1 prices for success, an d minor competitors leave the market because they be unable to subscribe clams. In around causas, some firms might dominate in the market due to price wars for example, acquisition of macro instruction foods by Woolworths in 2009. Price wars progress to a long-term effect on consumer preference, since consumers ar left in a market with fewer players with greater authority. This case intimatelyly applies to supermarkets. Price reduction by retailers weakens the injury investment made by producers (Wallner, 2001).Price wars between unstable phone industries and supermarkets bring forth short-term benefits to the consumer, exclusively 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 excise future tense pricing. Price reduction withal affects the capacity of product distribution to small outlets such(prenominal) as bottle shops, local stores and convenienc e outlets. The price war between Britains dominant supermarkets has shifted into wandering market with major supermarkets reducing their prices by half. On the other(a)wise hand, the rival peregrine phone companies maintained that they offered the best price in the market. The supple phone companies have announced price increase everyplace the last few weeks however supermarkets slashed rectify the price for mobile phone service. The supermarkets ar able to take the opportunity fol upset of cutting the prices because they testament gain back by selling juicy margin goods (Eweje & Perry, 2011). There is price discrimination in calling evaluate because divers(prenominal) mobile phone industries have different tarrifs. The pressure exerted in the markets draw offs the mobile phones to adjust their prices to attain market equilibrium.In guild to understand the current little and macro- disdain trading operations breathing in the mobile phone industries and the superma rkets, it is imperative to snap the social, political and economic structures. The reduction of interest rates by the government has greatly reduced the train of unemployment. In addition the purchasing capability of clients get out increase because of the rectifyd financial situation. However, the scuttle of massive financial uncertainty go away affect consumer spending especially while purchasing bonus products (Boyd, 2001)Analysis on current European demographics shows that thither is an change magnitude trend of ageing population. There is low possibility of old generation to go shopping in the supermarkets as compared to the young generation. The earnings literacy is at 65 years, although growing population considers online shopping as efficient. Macro surround is external to the business sector and they are uncontrollable factors that are beyond control by either fundamental law (Forstater, 2007).Appropriate macro environs allow for modify supermarkets and mobil e phone industries to make effective policies and strategies to make changes as well as coping up with changes in the current market. small environment on the other hand are the internal factors that mobile phone industries and supermarkets fag end control. small environment have direct impact to an organization because it directly affect its zsuccess and operations. little environment exit affect an organizations capacity to see 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 settings 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 take over strategies t hat pass on affect both their success and operations (Wan, 2006).The law of demand and supply will suffice supermarkets and mobile phone industries to settle on a market equilibrium calling price. In an flack to run from spicy calling speak to 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 rudimentary items so that they can metamorphose 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 go to such a level that if the trend carries on, mobile service will be more(prenominal) cheap to much larger parts of the emergent markets population. The price wars ensure that both the supermarkets and mobile phone industries hold off checking on their prices so that they can maintain their profits as well as making profits. The supermarkets go forward to increase their promotions while other rival companies such as Tesco hold that they will continue beingness aggressive. There are various factors that have conduct to the reduction in price of mobile phones. The cost of mobile phones is brought down by heavy subsidies from the government, high levels of competition as well as efforts from local manufacturers who set on selling accession-level phones. The price of mobile phones has been brought down by the evaluate growth of markets (Wessels, 2006). erratic manufactures are straining to sell their phones in the uphill markets such as Philippines, Nigeria and India. active phone manufactures have a great opportunity for the gilded phones to substitute feature phones in the emerging markets. fluid phones manufactures demonstrate the problem of lack of operator subsidies in the emerging markets so that they can support the gateway of these tuppeny mobile phone s. As the cost of mobile phones continues to reduce, it is anticipated that emerging markets will receive an increasing number of cheap phones in future. However, there are 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 balk the cheaper supply effect. By examining the current situation, mobile phones manufacturers who will be able to cope up with the unfaltering competition in the modern market, will prepare a strong stance in the future mobile phone market (Eweje & Perry, 2011).Technology approach has enabled manufactures to device life-fitting mobile phones that are cheap and affordable. Mobile phones are a very crucial aspect in human daily lives because it enabled people to communicate, interact and to spur development. Smartphones technology continues to be more everyday in devel oped countries however, the drop in price of phones has drastically changed the situation since smartphones are now more well-disposed in the emerging markets. Cheap 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 de delimitedly make smartphones more accessible in emerging products, but there is low network 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 and through their phone. There is also high rate of pompousness and unemployment in emerging markets which is another 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. I n the efforts of developing cheap mobile phones in emerging markets, the issue of insufficient mesh al-Qaida should also be addressed. Mobile net income operators should focus on sustainability, where they should develop business structures that permit them to put on returns by bringing data networks to emerging markets ( deservingington & Britton, 2006).The network connectivity can be provided by companies like Google however, the cost imposed to the local economy would be huge. The flak 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 get 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 just to be implemented. The emerging markets will get internet thro ugh microwave signals and grapheme optics. The local governments will benefit from revenue lay in from internet licenses.Conclusion Price wars between mobile phone industries 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 advanced the lives of farmers, health-care professionals among other people thus supporting(a) 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 analysis and modeling A macro to micro approach with multidisciplinary applications. San Diego, CA academician Press.Do consumers really 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). contrast and sustainability Concepts, strategies and changes. Bingley, UK Emerald Group.Forstater,M. (2007). frugals. Chicago Chicago Review Press.Krugman,P.R., & Wells,R. (2009). Economics. New 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., & eye for Economic Policy Research (Great Britain). (2001). Price wars in finite sequent ial move price competition. London Centre for Economic Policy Research.Wan,K.K. (2006). From micro to macro quantum systems A unified formalism with superselection rules and its applications. London Imperial College Press.Wessels,W.J. (2006). Economics. Hauppauge, NY Barrons.Worthington,I., & Britton,C. (2006). The business environment. Harlow Financial Times Prentice Hall.Source catalogue