Economics: Business Proposal Revision

Business Proposal Feedback Checklist

ECO/561 Version 8

2

Important information

Included?

Comments

Identification of market structure

X |_|

Yes No

The author describes the market structure as oligopoly, where there are many competitors among the market which compete against each other.

Assumptions regarding market structure and elasticity

X |_|

Yes No

Both elasticity of demand and price are described within the author's article. The author also provides data on how each would be affected by pricing.

To what degree do you agree or disagree with the items below?

SD=Strongly Disagree

D=Disagree

N=Neutral

A=Agree

SA=Strongly Agree

Justification included?

Comments

Chosen method to increase revenue

|_| |_| X |_| |_|

X |_|

Yes No

The author describes the product as having a high price within the inception years which will maximize profits with later having competitors entering the market.

Chosen methods to determine profit-maximizing quantity

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

The author intends to put into play the premium pricing strategy, allowing the product to be slightly higher than competitor pricing but relying on customer loyalty to the product.

Use of concepts of marginal cost and marginal revenue to maximize profit

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

To maximize profit the author will try to match the pricing of competitors by lowering the price and using "psychological pricing", making the customer believe they are getting a better deal.

Suggested mix of pricing and nonpricing strategies

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

Non-pricing strategies suggested, such as owning a scarce resource in this case the author is designing a foldable battery with the foldable smart phone, research and development, allowing the author to find and work out all the kinks before his competitors. The author also mentions customer loyalty to the product.

Selected barrier to entry

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

The author states that he will patent his foldable battery making it hard for competition to enter the market.

Chosen methods to increase product differentiation

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

The author describes a foldable smart phone, a foldable battery which will have a patent, and customer loyalty.

Chosen methods to minimize costs for the product

|_| |_| X |_| |_|

SD D N A SA

X |_|

Yes No

The author describes research and development of the product, along with automation, bulk purchasing, quantity discounts and the utilization of resources.