Live in your worldplay in ours - PowerPoint PPT Presentation

1 / 25
About This Presentation
Title:

Live in your worldplay in ours

Description:

Size of the television, all televisions will be required to have ... much difference between a Panasonic and Sony TV. ... Equipment used to assemble TV's ... – PowerPoint PPT presentation

Number of Views:173
Avg rating:3.0/5.0
Slides: 26
Provided by: raymonddb
Category:

less

Transcript and Presenter's Notes

Title: Live in your worldplay in ours


1
Live in your worldplay in ours
Natalie Stewart Katie Poelking
Joel Cortileso RD Buckwalter
2
Table of Contents
  • What is Economics
  • Price Discrimination
  • Opportunity Cost
  • Government Intervention
  • Income Effect
  • Perfect Competition
  • Oligopoly
  • Diversification
  • Factors of Production
  • Demand

3
What is Economics?
  • The study of choice under conditions of
    scarcity.
  • Economics is a social science that studies
    aspects of human behavior relating to working,
    producing goods, distributing them, and
    consuming them.

4
Price Discrimination
  • Price discrimination is when a seller charges
    different prices to different consumers for
    reasons other than differences in production
    costs.

5
Sony Price Discrimination
  • Sony uses coupons as a way to attract
    customers. This
  • is a form of price discrimination.

No Price Discrimination
Price Discrimination
P
P
P
p1
p2
p3
Q
Q
Q
q
q2
q3
6
Opportunity Cost
  • Opportunity cost is the value of the best
    alternative
  • Or alternatives, sacrificed when a firm focuses
    resources
  • On a particular action.

7
Sonys Opportunity Cost
The decision by Sony to produce a new gaming
platform Involved an opportunity cost. By
focusing resources on this New gaming unit, PS2,
they gave up their best alternatives Such as
simply improving the current PS1 and
improvements Of their computers.
8
Government Intervention
  • Government intervention is when the
    government
  • takes a position of mandating that a firm
    comply with
  • particular policies for the common good of the
    general
  • population.

9
Government Intervention in Sony
  • The FCC (Federal Communications Commission)
    recently
  • Mandated that by the year 2004 or 2007, depending
    on the
  • Size of the television, all televisions will be
    required to have
  • The capability of transferring digital signals.
  • As a result of this government intervention,
    Sony and other
  • Producers claim the cost to consumers will rise
    because of
  • An increase in production costs versus current
    analog TVs.

10
The Income Effect
  • Income effect states that as the price of a
    product decreases
  • The consumers purchasing power increases,
    causing a change
  • In the quantity demanded for the good.

Inferior Good vs. Normal Good
11
Income Effect on TV Sales
  • Sony Corp. produces two types of television
    sets. The Trinitron
  • Series is the typical TV found in most
    households, and sells for a
  • a reasonable price. On the other hand, the Wega
    flat screen TV
  • sets sell for nearly twice the price.

P
QD
12
Perfect Competition
  • In order for a company to fall under perfect
    competition they must
  • Satisfy three criteria
  • There must be a large number of buyers/sellers
  • The product must be standardized
  • Sellers must be able to easily enter and exit
    the market

13
Sohow does Sony fall under Perfect Competition?
  • There are a large number of sellers pf
    mainstream consumer
  • Electronics such as TVs, DVD players and CD
    players i.e. Zenith, Apex,
  • Phillips. There are also a large number of
    buyers for these products,
  • Sony recorded sales of 18.5 billion in its last
    fiscal year.
  • Many of Sonys products are standardized, in
    that you can not find
  • much difference between a Panasonic and Sony TV.
  • Many (however not all) of the markets Sony
    represents are easy to
  • enter and exit. Portable audio players, car
    audio and electronic accessories
  • are all examples of this.

14
Oligopoly
  • An oligopoly is a market structure with very few
  • firms that are producing either
  • Homogeneous product
  • or
  • Heterogeneous products

15
But I thought Sony fell under Perfect
Competition!
  • Play Station 2 is an example of an oligopoly
  • market that Sony participates in.

16
Diversificationhmm
  • Diversification is the process of reducing
  • risk by spreading sources of income among
  • different alternatives, such as different
  • consumer goods.

17
How has Sony Diversified???
  • Sony has become a conglomerate because
  • of its diversification into multiple industries.
  • From consumer electronics to music
  • Production.

Electronics, Gaming, Music.
18
Factors of Production
  • Factors of production are the result of the
  • Land, labor, capitol and entrepreneurial
  • activity that are used in the manufacturing
  • of a particular good and service.

19
What are Some Examples of Sonys Factors of
Production
  • Land The land which the factories and offices
    reside
  • Labor The worker that are employed by Sony
  • Capital
  • -Human Capital Training of employees
  • -Physical Capital Equipment used to assemble
    TVs
  • Entrepreneurship All risks that Sony faces by
    marketing their product

20
Factor Markets
  • Households- Supply of Resources
  • Firms- Demand for Resources

Supply Demand
21
Demand
  • Is a relationship showing the various amounts of
    an item which buyers are willing and able to
    purchase at various possible alternative
    prices, during a given period of time.

22
Playstation 2
23
Sony PlayStation 2 in High Demand
  • Sony is selling more PlayStation 2 consoles than
    they have the money to produce the chips.
  • Surging Christmas sales of its Playstation 2
    games console have helped Japanese tech giant
    Sony record its strongest earnings increase in
    company history.

24
Conclusion
  • Sony continues to achieve advancements in the
  • consumer electronics industry. These
    advancements
  • along with continued industry growth and a
    willingness
  • to remain Innovative have put SONY at the
    forefront
  • of this latest revolution.
  • Sony is an excellent candidate for economic
    analysis
  • because of its broad spectrum of products.

25
Works Consulted
  • Hall, Robert E. and Lieberman. Economics
    Principles and Applications.
  • Southwestern 2001.
  • Sony Inc. Website _at_ http//www.sony.com
  • Wired Website _at_ http//www.wired.com/news/digiwood
    /0,1412,54426,00.html
  • Sony Corporation _at_ http//www.sony.net
Write a Comment
User Comments (0)
About PowerShow.com