Competitive Strategies and Government Policies Essay

The electronics persistence is in a monopolistic competitive market. This market has few barriers to entry which means there slow entry for new firms in the long exceed (Colander, 2010, 361). Further, globalization has expand this market across the globe with many an(prenominal) countries distributing and manufacturing electronic products. Thus, globalization incessantly comes with the threat of new companies entering into the electronics market. This green goddess have a decisive effect on pricing and profits. As more firms enter the market, the footing for goods will decrease due to the entrance of several substitutes. However, due to this highly elastic market, a change in price will check to a higher(prenominal) change in quantity requireed (Colander, 2010, p. 155). Therefore, it is important for the fringy cost to be down the stairs the price but the price non to be set at an unrealistically high level beca drill of the grand range of substitutes. In the long-run, profits will tend to break flush for firms inwardly a monopolistic electronics attention. As firms enter the industry, the prerequisite hoist facing by an individual firm transmute down, as buyers shift some demand to new firms until the firm just breaks even. If the demand shifts below the break-even point, some firms will reach the industry in the long run (Four Market Structures). However, due to the wide range of firms across the globe, firms such as Vizio essential differentiate themselves through brand recognition, service, and quality to ensure hang ining force and a profitable future. Since the market is expanded across the globe, this differentiation essentialiness be displayed across the globe. Sony has held a strong brand name for many years now with dedicated consumers. Not every firm within the electronics industry can do this as Sony has d cardinal, and therefore, will not discharge long-term profit. However, as years pass, Vizio is making a name for them selves in the electronics industry. If it continuesalong this path to differentiate themselves among the pack, they will succeed in veridical consumer loyalty and profits.There atomic number 18 several different lineaments of mergers that can hit the books billet within an industry. Horizontal mergers are mergers of ii companies within the kindred industry. A vertical merger is a combination of two companies that are involved in different phases of producing a product, one ships family being a buyer of products and the separate company supplies (Colander, 2010, p. 418). On the other fleet conglomerate mergers are between two firms in unrelated industries. The nearly detrimental to an industry would be a plain merger. For example, the merger of two major firms within an industry could impair competition between with other firms as well as prices and profits because the merger may nominate a massive firm that backs an extremely high percentage of the market. That le gal age firm would be able to control prices due to its hold on the industry.Furthermore, profits for the minority firms would decrease as they increased for the majority firm. It would lead astray to take the shape of a monopoly. Therefore, the federal official Trade Commission moldiness investigate and review any proposed merger onward it is finalized and it will not proceed if it is not authorized to by the Federal Trade Commission. The Federal Trade Commission can pitch conditions upon the merger in order to promote fair competition. One type of merger within the electronics industry was that of Panasonic and Sanyo. Panasonic manufactured a variety of electronics from cameras to televisions to audio to DVD players and more. Sanyo was alike in the electronics industry. In December 2010, Panasonic acquired Sanyo for $9 billion (FTC Order Sets Conditions for Panasonics Acquisition of Sanyo, 2009). This type of merger is known as a crosswise merger. A horizontal merger is the c ombining of two companies in the same industry (Colander, 2010, p. 418). Accordingly, the merger between Panasonic and Sanyo can be classified as a horizontal merger because it merger two major electronics manufacturers. However, conditions were put in place concerning this acquisition that included agreeing to sell assets related to Sanyos portable nickel note metal hydride (NiMH) battery business, including a premier typeset in japanto preserve competition (FTC Order Sets Conditions forPanasonics Acquisition of Sanyo, 2009).The electronics industry has seen many changes in its historic ontogeny. This technology began with radio and broadcast technology, followed by television and magnetised recording. When the demand for electronic devices supersceeded its production, we began to see more of a competitive nature, these principles hold true through modern time, even with a constant evolution to tables, television, cell phones and the like. The one thing that stays the same is th e constant, driving consume to keep up or stay ahead of the curve. With the current political relation creation and policy intervention in place to regulate consumer electronics also comes the need to regulate monopolies and copywriters. These laws, and regulations upheld by executive branch agencies are reviewed and voted upon, generally to control monopolies. Whenever a law is passed to regulate or control something, these liberates, before being passed or voted upon, demand the attention of the public. Another possible issue that law would be passed to regulate electronic commerce is copyright infringement, identity theft and consumer liability.When we look at decisions made by management in the tire force for the electronics industry, one very effective result can now be achieved, filling supply and demand. orchard apple tree is one of the pencil lead companies within the industry and their action on what a global labor market can do for them shows immense benefits for f illing a demand and obtaining supply. apple executives say that going oerseas, at this point, is their only option. One motive executive described how the company relied upon a Chinese grind to revamp iPhone manufacturing just weeks before the device was due on shelves. Apple had redesigned the iPhones screen at the last minute, forcing an assembly line overhaul. New screens began arriving at the plant near midnight. A foreman immediately roused 8,000 workers inside the companys dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing over 10,000 iPhones a day. The speed and flexibility is breathtaking, the executive said. Theres no American plant that can matchthat. Similar stories could be told closely almost any electronics company and let onsourcing has also become common in hundreds of industries, including accounting, legal services, banking, auto manufacturing and pharmaceuticals. (DUHIGG, 2012, para. 12-15).Another huge advantage given to the companies within the industry comes from the beneficial relationship countries particularly in Asia, will do to win manufacturing for an electronics industry. The example provided will again stem from Apple, however Apple was one of the last industries in 2012 to ship the bulk of its manufacturing overseas. A huge reason can be because of the relations rules and regulations other nations gave them to fill manifestly impossible demands. This carries a similar result for unions. Unions fight for employee safety standards and higher wages. Although this creates a more efficient result start up for a new project can take much longer to purpose off the ground. This results in a less effective role for the electronics industry because decisions can sometimes change on the manufacturing line. Unions now become a slow moving dinosaur in a faced paced cut pharynx industry like electronics. For years, cell phone makers had avoided using glass because it needful precision in cutting and grinding that was extremely difficult to achieve. Apple had already selected an American company, Corning Inc., to manufacture large panes of strengthened glass. Although, figuring out how to cut those panes into millions of iPhone screens required finding an empty cutting plant, hundreds of pieces of glass to use in experiments and an army of midlevel engineers. It would cost a fortune simply to prepare. so a bid for the work arrived from a Chinese factory.When an Apple group visited, the Chinese plants owners were already constructing a new wing. This is in case you give us the contract, the manager said, according to a precedent Apple executive. The Chinese political science had agreed to underwrite costs for many industries, and those subsidies had trickled down to the glass-cutting factory. It had a warehouse fi lled with glass samples available to Apple, salve of charge. The owners made engineers available at almost no cost. They had built on-site dormitories so employees would be available 24 hours a day. The Chinese plant got the job.The entire supply chain is in China now, said some other former high-ranking Apple executive. You need a thousand meritless gaskets? Thats the factory next door. You need a million screws? That factory is a block away. You need that screw made a lowly bit different? It will take three hours. (DUHIGG, 2012, para. 37-39).In a monopolistically competitive market there are few barriers of entry. Globalization is endlessly a threat in this type of market as well. tag on and demand are important for any business to consider, especially in the electronics industry. Filling supply and demand is one of the most important factors that companies must consider when deciding how to use labor. Also, as demand shifts, supply unavoidably to as well, if this does not occur, business can go south quickly. If demand was to shift below the break-even point for a business, the firm may leave the industry all together. In order for a company to stay at or above the point of breaking even they must differentiate themselves from the competition. Something that can be detrimental, and may make a company lose some demand for products from their business, is the horizontal merger. The horizontal merger is one that merges two companies in the same industry together and that company ends up holding a high percentage of the market. There is help though, unions and government regulations are fighting for the safety and rights of companies and employees alike. Companies must consider and anticipate a lot throughout the year and into the future. As long as they are able to adapt, compete, and stay ahead of the pace, companies in the electronics industry should continue to flourish.ReferencesColander, D. C. (2010). economics (Eighth ed.). New York McGraw-Hill/I rwin. Four Market Structures. (n.d.). Retrieved March 9, 2014, from Los Angeles Harbor College www.lahc.edu/classes//MicroLecture4.ppt http//www.mcrinc.com/Documents/Newsletters/201302_EvolutionElectronicsIndustry.pdf http//www.techrepublic.com/resource-library/whitepapers/the-evolution-of-the-electronics-industry/. http//hbswk.hbs.edu/item/3738.html