Strategic analysis and innovative marketing


?STRTEGIC ANALYSIS is a process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy?. A number of tools are used in the process of strategic analysis, including PEST, SWOT analysis, and Michael Porter's five forces model etc.

(Ref: dictionary

Innovative marketing is a promotional marketing specializing in the creative use of merchandise to enhance your company's image and bottom line. It isn?t always necessary doing a big new idea but also leveraging the technology that is available and find different ways to connection with the consumers through that technology.

Economy is a theory of commercial practices such as consumption, production of goods and its distribution. Market economy on market influence to allocate on goods,resources and to determine prices.


The preference of a consumer to use or buy a particular good or a product is called demand. The most essential factor influencing the consumer tastes decision is the price and value of the product. The demand for a particular commodity would be higher in case its price is lower than the other related products in the market. Therefore, price of a product and the quantity in demand are related to each other.


The quantity of goods and services firms are able and willing to manufacture at a given level of prices over a specific period of time is called Supply. Company?s produces to make maximum profits from the product. Higher the price of a product, more profit the company would generate. Profit is directly related to prices. In a situation, where the price of a good or service is higher, with all other conditions remaining the same, the greater the quantity is supplied. This is called the law of supply.

Demand and supply is fundamental theory

The fundamental theory of supply and demand is one of the theories of economics and is the foundation upon which many other more detailed economic models and theories are based. The theory is a very essential tool that is used by economics in demand to explain the workings of a market economy, hence since supply and demand crucial elements that directly affect resource provision.

Evolution in price of computers over time

Computers were developed in 1940?s and in 1950?s which were only used by architects and scientists as they were very expensive and too large to carry or store but as time passed and computers evolved it has became very easy for a common man to buy a personal computer and work on it. Prices of computers also changed drastically. Now in today?s world it is very much affordable and easy to buy a computer for the average class person. Where earlier it was not the cup of tea for a common man. As the prices are too low and competitive market computers have turned out to be a very attractive economical object in business area.

Law of demand

?A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa?.

( Google : dictionary )

Demand curve

The quantity demanded of computers usually is a strong function of its price. Suppose an survey is run to know the computers demanded at different price levels, holding everything else stable. Presenting the data in tabular form would result in a demand schedule, an example of which is shown below.

A Shift versus Movement along a Demand Curve

It is very important to differentiate between the shift and the movement of demand curve. A variation in price results in a shift along a fixed demand curve. This is also associates the change in demanded curve. A change in any other variable that has an impact on quantity demanded produces a shift in the demand curve or a variation in demand curve. The scenario can different, but it is very essential.

Suppose income rise causing people to buy more computers. Then for the same price the quantity demand will be more than before. The left-hand chart below represents that circumstances. As income rises, the quantity demanded for computers at 4 ? goes from 40 pt. A - 20pt A'.

Moreover, a change in the demand curve changes the imbalance position. On the right hand chart below, the shift in the demand curve that moves the market symmetric from point A to point B, resulting in a higher price (from 3 ? to 4 ?) and higher quantity (from 30 - 40). If the demand curve changes to the left, the equilibrium price and quantity will both eventually fall.


Factors effecting movement and shift in demand curve

  1. 1.Change in the consumer incomes it is associated with the purchasing power of consumer and willingness, the increase in income levels of the consumer eventually lead to increase in demand and their preferences and the business of the manufacturers and traders do well there is a increase in the demand and supply but in the other scenario if the consumers do not have enough sources to purchase or buy anything due to their income level increase and decrease their purchasing power reduces and so the market and business decreases and there would be a shift in the demand
  2. 2.Consumer preferences consumer preference is nothing but consumer taste and a choice among different options. It is the desire of the consumer against a particular product and intention to buy it, so as the demand for a particular product increases or goes higher the shift of the demand curve turns towards the right and so as if the shift turns towards left that means the demand is less for the particular product. So as per the computer market the demand is increased by giving good package and services to the consumers as they can increase their sales.

Brand name and goodwill of the company is also a prime factor for consumer tastes and preference

Eg . 1 .Acer is world?s highest selling laptop in the world because its budget full and good configuration

2. Dell also is very much familiar and more preferable in the market as like Acer even dell offers good configuration and cheap compared to other laptops of same configuration.

3. Sony/Apple/Hp laptops are bit less preferred by the consumers because they are costly and luxurious use.

So hence in today?s market people prefer good quality with affordable prices and so demand of these products is much higher than the products which are costly.

3.Change in population: population plays a vital role in demand and supply market. As the population increases the need and requirement of the product also does increase. Where increasing number of people results in increase of demand and increase in supply to and when the demand increases the product prices starts falling down due to high demand.

For example when new schools or college open they would require new pc?s and laptops to meet the student?s demand and increase in students is nothing but related to population growth ,and as time the market price of the particular product falls due to new products and competitive market.

4.Price of related goods: there is a relation between the price and demand of the main product and the related product in the market as the price of the related product change the price of the main products also changes. Related goods can be categorized in two types and they are complements and substitutes.

A) Complements : the products which are consumed and which supports the main products are knows as complements. In Products like computers software and hard drives etc becomes the complement product for the computer. Complements and main products are inversely related where in take the situation if the prices of the software or drives increase the demand curve shifts to lefts and compliments curve shifts right that means there is a decrease in the demand and if the price of the computer increase the demand curve of the compliment product shifts towards left that indicates there is a decrease in demand of the compliment product.

B) Substitutes : The products which can fulfill the demand of the main products are called as substitutes. There is a choice for consumers to consume the substitute product if the purpose of the consumer is fulfilled. There are several products in the market which can replace the need of the main product. They are competitive and more likely to meet the demand of the consumers.

Eg : If I need to buy a laptop I would rather prefer a cheap and best serving product for my use instead of costly product which serves the same need.

There would be a shift in demand curves if the preferences of the consumers change from one product to another substitute product. Hence the demand for best products shifts right and less preferred product shifts towards left.

Law of supply

?A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliersincreases and vice versa?.

(Google: dictionary)

Supply curve

?Price usually is a major determinant in the computers supplied. For a particular good with all other factors held constant, a table can be constructed of price and quantity supplied based on observed data. Such a table is called a supply curve schedule, as shown in the following example

A Shift versus Movement along a supply Curve

Shift in the supply curve

Factors effecting movement and shift in supply curve

  1. change in the input cost:
  2. improvement/increase in technology:
  3. change in the size of the market:

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