Economic100 Article Analysis Example | Topics and Well Written Essays - 1250 words - 1

Economic100 Analysis - Article Example The article sheds light on the increasing costs of business, implying that not only the apparent rise in coffee beans but also utilities, rent etc attribute to the hike in the prices. Keeping this in mind, the climate of business is not a favorable one, and this may have short term to middle term implications for other segments in the market as well. The objective of this analysis is to apply relevant economic concepts to this article and understand the fundamentals at work here. Economic Concepts There are a few key economic concepts which can be applied to explain the whole of things. Some of them include demand pull inflation, increase in aggregate demand, porter’s five forces etc. Particular focus will be laid on the implications of the existing context, given it persists and how it will hamper longer terms sales etc. Analysis The first economic concept which the article lays emphasis on is the fact that there has been an overall increase in the demand for coffee around th e world. We’ve seen that over the course of the last 3 decades, a lot of globalization has taken place, and in the process, there has been a lot of transference of good and services across borders. Coffee is one of those items which has found a market for itself wherever it has gone. Growing economies such as China and India have shown great promise in terms of demand for the products and this has only fueled the prices in an upward direction. When aggregate demand increases, it has to be followed by an increase in the aggregate supply in an equal magnitude otherwise the result is inflationary pressures in the economy. In the case of coffee, the demand has increased, but the supply has not been able to cope with the demand. Hence the result is demand pull inflation. As is seen in the diagram, increases in the aggregate demand will cause a movement along the curve, but if there are other variables altering, then this can trigger a shift of the curve all together. The inflation we refer to over here doesn’t imply that the whole economy is heating up, but rather just the coffee segment. However, inflation is something that cannot be sustained in this segment. The reason can be explained by Porter’s Five Force model. One of the key pillars of that model is the threat of a substitute. In the case of coffee, there are many substitutes readily available in the market. They can include tea, lattes, cappuccinos etc. The point is that price fluctuations are not sustainable in an industry such as this one. Moreover, the price sensitivity of this product is extremely high. Therefore, even the slightest fluctuations in price could trigger a decrease in supply for this product. Now the real debate starts here. The problem in prices arose due to an uncoordinated demand. However, what’s the trade-off between increasing prices and increasing consumer base? The answer to this question lies in the fact that no production line would like to see a decli ne in the demand for that particular good, however, it must be able to sustain the demand without increasing prices. If prices are pulled up due to these pressures, it implies that the demand cannot be sustained and eventually, the higher prices will lead to a decline in the demand and equilibrium will once again be attained on the previous level. When that happens, this cycle will repeat

The marketing plan Research Paper Example | Topics and Well Written Essays - 1000 words

The marketing plan - Research Paper Example It is also in competition with companies the develop applications especially mobile applications which imitate distinct capabilities that include sharing of photos as well as messaging and some of Facebook’s competitors include LinkedIn, Google+ and Twitter etc. Facebook has grown to be more valuable than Amazon in terms of the market value with a market capitalization that is in excess of USD 170 billion compared to the market capitalization of Amazon that has decreased to below USD 165 billion. From the previous earnings report, the social media company beat revenue estimates and realized more revenue from mobile advertisements which now account for a big percentage of the total advertisement revenue. Almost sixty-five percent of the users on Facebook are older than thirty-five making the average over forty while the users who are less than twenty four years of age make up only fourteen percent of the users. Of the total Facebook users, sixty percent are female and almost fifty seven percent have finished one form of college education or another while less than a quarter have a bachelor’s or a graduate degree. The social presence of Facebook is seen in 137 countries which is more than all other social networks that are in only 127 of these nations. The US has the highest presence on Facebook even though only a half of the population uses the social networking site. India and Brazil are the Facebook markets that are steadily growing (Treadaway and Smith, 2012). Advertisements on the network that target the people on mobile devices have the potential of fetching the network huge revenues and as a result of the plethora of information that is received from the members, it is able to send advertisements that interest the particular users making them have the option of charging more for the advertisements than other companies. The platform that has been developed by Facebook is