Econs project B

1. Econs project B Yew Boon Wei Yang Fang Xiang Tse Pin

2. Recent Developments !!! • China labour costs increase • Income rises for Singaporeans announced in Budget 2011 • Release of Android and Galaxy Tabs • Japan earthquake and tsunami

3. Producer’s point of view • A few months ago, Chinese workers went on a strike for wage increase. Labour costs in China increased, resulting in an increase in production costs and thus reducing the profit per unit for iPad. • This will cause a decrease in the supply of Ipad as we signal our intention to produce less in the market. Because the demand for Ipad stays constant, there will be inadequate supply to meet the demand, upward pressure on price for iPads price SS2 SS1 New PE Old PE dd qty

4. We increase our pricing for iPads • We market our products to more regions of the world to increase sales and cushion the loss in profits due to increased costs of production

5. Producer’s point of view • Earthquake and tsunami in Japan cause disruptions in production of key components in iPads. Less iPads will be supplied. Consumers will then signal to us that they are willing and able to pay more, putting upward pressure on price of iPads price SS2 SS1 New PE Old PE dd qty Nihon :’(

6. We increase the pricing of iPads • We market to more regions of the world to increase sales to increase profit

7. Consumer’s point of view Due to Budget 2011. government intends to grow income for all Singaporeans by 30% in real terms over this decade Singaporean’s purchasing power increases and demand for iPad (normal good) increases. There will be an upward pressure in the price of the iPad price SS New PE Old PE dd2 dd1 qty I will increase your purchasing power, by over 9000!!!

8. We increase the price of iPad as demand increases • We market more of our iPad to Singaporeans

9. Consumer’s point of view • More choice available to consumers due to the launch of Android and Galaxy Tabs. Consumers may switch to such alternatives, thus decreasing the demand of iPad , putting a downward pressure on price of iPad. price SS Old PE New PE dd1 dd2 qty

10. We market aggressively to the consumers and increase our brand loyalty of the consumers to reduce the market share of competitors • We lower the price until it is lower than our competitors to try to monopolize the market, increase demand of our product and force the competitors out

11. acknowledgements • http://www.google.com.sg/imglanding?q=samsung+galaxy+tab&um=1&hl=en&sa=X&biw=1366&bih=554&tbs=isch:1&tbnid=-UJ1y0Lc5zwoaM:&imgrefurl=http://www.techmynd.com/samsung-galaxy-tab/&imgurl=http://www.techmynd.com/wp-content/uploads/2010/09/samsung-galaxy-tab-2.jpg&ei=oNaOTe_LDI2avgO19Pi4DQ&zoom=1&w=500&h=445&iact=hc&oei=oNaOTe_LDI2avgO19Pi4DQ&page=1&tbnh=122&tbnw=118&start=0&ndsp=24&ved=1t:429,r:9,s:0 • http://www.google.com.sg/imgres?q=china+labor&um=1&hl=en&tbs=isch:1&tbnid=WXs3CwpOQ0QmeM:&imgrefurl=http://www.dispatch.com/live/content/business/stories/2010/06/16/chinas-labor-strife.html&imgurl=http://www.dispatch.com/wwwexportcontent/sites/dispatch/business/stories/2010/06/16/china-wednesday-art-gg08sl60-12-china-labor-honda---xhg803---large.jpg&ei=tdeOTYucE9SPcOL3vf8J&zoom=1&w=600&h=385&iact=hc&vpx=126&vpy=154&dur=324&hovh=133&hovw=207&tx=147&ty=67&oei=cdeOTdrbNoi4vwOCnqipDQ&page=1&tbnh=133&tbnw=177&start=0&ndsp=18&ved=1t:429,r:12,s:0&biw=1366&bih=554 • http://www.google.com.sg/imgres?q=budget+2011+singapore&um=1&hl=en&sa=G&tbs=isch:1&tbnid=hoMKQKlLIIsEAM:&imgrefurl=http://www.allvoices.com/contributed-news/8226880-singapore-budget-2011/image/73266632&imgurl=http://img2.allvoices.com/thumbs/events/100/75/63815645-singapore-budget.jpg&ei=pending&zoom=1&w=100&h=75&iact=hc&vpx=995&vpy=405&dur=474&hovh=66&hovw=89&tx=83&ty=33&oei=Y9mOTZr6HYjcvQPN8pyjDQ&page=2&tbnh=66&tbnw=89&start=20&ndsp=21&ved=1t:429,r:12,s:20&biw=1366&bih=554