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

The recent damage warf ars amidst un settletled phone industries and super commercializes contrive been beneficial to the consumers as considerably as their respective industries. It can be argued that damage wars enable customers to save their money, development consumer utility and racetrack to great competition. However customers allow solely enjoy the benefits of price wars in the short-run, but the situation change in the long run. Price wars lead to decrease of prices, but it is natural to evaluate the military group of price decrease on consumer spending. The rationale of this newspaper publisher is to examine the effect of price wars between liquid phone industries and the supermarkets.Findings and Analysis Price wars eliminate peripheral players and alter the structure of the market. In case of price wars, few competitors will be willing to write down an unattractive market that greatly rely on low prices for success, and minor competitors leave the market because they be unable to make profits. In some cases, some firms might dominate in the market collectible to price wars for example, acquisition of Macro foods by Woolworths in 2009. Price wars have a long-term effect on consumer preference, since consumers argon left in a market with fewer players with greater authority. This case generally applies to supermarkets. Price drop-off by retailers weakens the brand investment made by producers (Wallner, 2001).Price wars between prompt phone industries and supermarkets have short-term benefits to the consumer, but they result to decrease in price which has a long-term impact to the consumer. Price cuts emanating from price wars alter consumer expectations for discounting and hit future pricing. Price reduction in addition affects the readiness of product distribution to small outlets much(prenominal)(prenominal) as bottle shops, local stores and convenience outlets. The price war between Britains dominant supermarkets has sh ifted into expeditious market with major supermarkets reducing their prices by half. On the separate hand, the rival nomadic phone companies maintained that they offered the best price in the market. The mobile phone companies have announced price gain over the last few weeks however supermarkets slashed down the price for mobile phone service. The supermarkets are able to take the opportunity cost of cutting the prices because they will soak up back by selling high margin goods (Eweje & Perry, 2011). on that point is price discrimination in job rates because different mobile phone industries have different tarrifs. The pressure exerted in the markets makes the mobile phones to sort out their prices to attain market equilibrium.In order to understand the current micro and cock-a-hoop-business operations existing in the mobile phone industries and the supermarkets, it is imperative to analyze the social, political and economic structures. The reduction of interest rates by the government has greatly reduced the level of unemployment. In addition the purchasing capability of clients will increase because of the improved financial situation. However, the possibility of huge financial uncertainty will affect consumer spending curiously while purchasing bonus products (Boyd, 2001)Analysis on current European demographics shows that there is an increasing turn out of ageing population. There is low possibility of old generation to go shopping in the supermarkets as compared to the young generation. The net income literacy is at 65 years, although growing population considers online shopping as efficient. Macro purlieu is external to the business sector and they are uncontrollable factors that are beyond control by whatsoever presidency (Forstater, 2007).Appropriate macro surroundings will enable supermarkets and mobile phone industries to make strong policies and strategies to make changes as well as coping up with changes in the current market. M icro milieu on the other hand are the internal factors that mobile phone industries and supermarkets can control.Micro environment have direct impact to an organization because it directly affect its zsuccess and operations. Micro environment will affect an organizations capacity to serve its clients. Therefore, before supermarkets and mobile phones industries decide on any bodied 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 aspects 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 appropriate strategies that will affect both their success and operations (Wan, 2006).The rectitude of demand and supply will dish up supermarkets and mobile phone industrie s to settle on a market equilibrium calling price. In an attempt to run from high calling cost from other mobile service succeedrs, customers ends up in the supermarkets which charges low prices to its mobile customers. However, supermarkets place price premiums on basic items so that they can substitute 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 fallen to such a level that if the trend carries on, mobile service will be more(prenominal) affordable to much larger parts of the acclivitous markets population. The price wars ensure that both the supermarkets and mobile phone industries keep checking on their prices so that they can maintain their profits as well as making profits. The supermarkets continue to increase their promotions while other rival companies such as Tesco hold that they will conti nue being aggressive. There are various factors that have led 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 entry-level phones. The price of mobile phones has been brought down by the anticipated growth of markets (Wessels, 2006). Mobile manufactures are focusing to sell their phones in the emerging markets such as Philippines, Nigeria and India. Mobile phone manufactures have a great opportunity for the sleazy phones to substitute feature phones in the emerging markets.Mobile phones manufactures face the paradox of lack of operator subsidies in the emerging markets so that they can support the entry of these cheap mobile phones. 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 approac hes 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 hamper the cheaper supply effect. By examining the current situation, mobile phones manufacturers who will be able to cope up with the stiff competition in the modern market, will secure a strong stance in the future mobile phone market (Eweje & Perry, 2011).Technology advancement has enabled manufactures to doojigger 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, socialize and to spur development. Smartphones technology continues to be more prevalent in developed countries however, the drop in price of phones has drastically changed the situation since smartphones are now more affable 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 definitely make smartphones more accessible in emerging products, but there is low internet connectivity in developing countries. Low internet perceptiveness 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 their phone. There is also high rate of inflation 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. In the efforts of developing cheap mobile phones in emerging markets, the issue of insufficient network infrastructure should also be addressed. Mobile network operators should focus on sustainability, where they should develop business structures that permit them to earn returns by bringing data networks to emerging markets (Worthington & Britton, 2006).The network connectivity can be provided by companies like Google however, the cost impose to the local economy would be huge. The attempt of brining solutions to the issue of network models in emerging markets, would have indecent effects to the local ecosystem as well as devastating impact to the mobile network operators who provide employment, and to the government who masturbate 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 through microwave signals and fiber optics. The local governments will benefit from revenue collected from internet licenses.Conclusion Price wars between mobile phone industries and supermarket will benef it 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 encouraging 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 colloquy among other benefits.ReferencesBoyd,D.W. (2001). Systems analysis and modeling A macro to micro approach with multidisciplinary applications. San Diego, CA Academic 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). Business and sustainability Concepts, strategies and changes. Bingley, UK Emerald Group.Forstater,M. (2007). sparings. 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., & Centre for Economic constitution Research (Great Britain). (2001). Price wars in finite sequential 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 C ollege Press.Wessels,W.J. (2006). Economics. Hauppauge, NY Barrons.Worthington,I., & Britton,C. (2006). The business environment. Harlow monetary Times Prentice Hall.Source document