Business Proposal Essay

Market mental synthesis and ElasticityThe gingersnap depends on if in a year Google sells all oer one million and stays under the contention expense of $80 dollars by Belkin Miracast then it notify fluctuates it scathe to $50 per Chromecast. The elasticity of collect is once a manager knows the marginal address, they should then set the price over marginal appeal. This is the profit that the harvest-tide leave alone produce. The industry for Chromecast is to award people the survival to go beyond the monopolistic competitive market structure such as Comcast to a lesser monopolized substitution for note Chromecast.Pricing Strategy based on Market Factors Having a scheme for Chromecast forget address the competition and the day to day operations. Using live leadership, differentiation and having focus will allow the pricing strategy to attain marginal salute and allow you to profit by selling to a greater extent of the lower price item to focus in a on a smaller audience which will provide revenue in the future due to the differentiation that you have for your product and stepping out amongst your competitor to offer the lower price for the Chromecast. How will careens in the standard supplied as a result of your pricing decision affect marginal cost and marginal revenue?Changes in Revenues and Costs Lead to Changes in wage(Markup Pricing, 2014)We see here that if a company changes their price, it can lead to changes in the cost and revenue, the profit is equal to the change in revenue damaging the change in costthat is, the change in profit is marginal revenue minus marginal cost. When marginal revenue equals marginal cost, the change in profit is zero, so a firm is at the upper side of the profit hill (Markup Pricing, 2014).Non Pricing StrategyThe non-pricing strategy can be mapd for Chromecast to gain sales due to many customers valueing quality over cost, consumers want to know that if they pour property into something that they are getting what they gainful for and expect more from the product than they paid for. The non pricing strategies that will be used in determinning the increased barrier to entry from the normal price slashing will be network effects, compactability to be equal to(p) to willpower of defy of a key resource, high set up cost, advertising, and eventually having a strong brand. Having a pricing entry of $35 dollars is an impluse to buying the doojigger, but the non pricing strategy can be the most impregnable strategic weapon, Chrome is a focus at Google Android is anafterthought, (Keizer, 2013). other non pricing strategy is the simplicity rules that Chromecast leverages demonstrable consumer behavior with wireless media recievers, and marries that with the sprightly ecosystem (PBS, 2014).Economic cost concepts and how could changes in your concern operations alter the melt of unflinching and variable quantity costs in line with your strategy? Everything has a cost, decidi ng on if that cost is something a company can control can be a challenge to the business, looking at wintry cost and variable cost, such as interest paid endorse on a car loan its the same. Can the funds be controlled such as fixed cost, or does the needle money the money for a variable amount. A few examples of a fixed cost is rent on a building to be able to make the product and depreciation over time. This can lead to well-read what the cost will be advance for the product and how it factors into the profit will lead a company to understanding more about their product and the overall outcome of how it affect the budget.A few variable cost involved with the product can have a cost of labor, this can change due to the experience of the workers and overtime that meets the demand of the time nice product to release to the world. Cost of labor can change and factoring this into your budget is a must to formulate your budget, hence every year cost of labor goes up if you give rai ses or bonuses. Another demanding variable cost is the shipping and delivery charges, if your are shipping all over the world and products have to go thru customs, then the price goes up, factoring a baseline for the product will help a business omen the plan for the business and allow a budget to be factored into the chance(a) profits that the product produces.ConclusionOverall, Chromecast is a product of Google and allows a choice for the over demanding cable industry. Giving your customers a choice promotes respect and loyalty, in this business marriage proposal the topics of economic principles were presented and statements about the market structure and the elasticity of demand for the good or service. Chromecast is a thumb- sized media streaming device that plugs into the HDMI port on your TV. Set it up with a simple roving app, then send your favorite online shows, movies, music and more to your TV use your smartphone , tablet or laptop. Chromecast is remote free and as simple as a plug and play and only cost$35. In this business proposal the market structure and elasticity of the product was identified, the following questions were answered How will pricing relate to elasticity of your product?How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue? Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry? How could changes in your business operations alter the swagger of fixed and variable costs in line with your strategy? The proposal demonstrated an understanding of the uses of product differentiation by not allowing certain(prenominal) content to be streamlined to your television and native apps or operate installed in the product (Google, 2014).ReferencesGoogle. (2014).Keizer, G. (2013). Computerworld. Retrieved from http//www.computerworld.com/s/article/9241170/With_Chromecast_Google _reveals_Chrome_as_its_strategic_big_gunMarkup Pricing. (2014). Retrieved from http//2012books.lardbucket.org/books/theory-and-applications-of-microeconomics/s10-04-markup-pricing-combining-margi.htmlMcConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics Principles, problems, and policies (18th ed.). Boston, MA McGraw-Hill Irwin.PBS. (2014). Retrieved from http//www.pbs.org/mediashift/2013/07/5-reasons-google-chromecast-will-transform-tv/