Currentmarketconditions - 798 Words

Current Market Conditions Competitive Analysis Principles of Microeconomics ECO 365 David Norcross April 13, 2015 Current Market Conditions Competitive Analysis In this paper, Team A is participating in a strategic planning group creating a new product at General Motors. The following is a competitive market analysis on the potential of our new 2016 Chevy Volt’s success. We will be focusing on our competitor Toyota and their Prius lineup. Additionally, we will summarize our target consumer and current market conditions. Then we will cover variables that weigh on supply, demand, and equilibrium prices. Next, we will consider the pros and cons our firm faces while identifying the effect on our competitiveness and long-term†¦show more content†¦Opportunities and Challenges * Any issues or opportunities your organization or industry faces that affect its competitiveness and long-term profitability with regards to your product: This may include, but is not limited, to the following elements. * Price elasticity of demand * Technological innovation * The relationship between the amount of labor amp; capital employed and the law of d iminishing marginal productivity * Cost structure Factors affecting variable costs Factors affecting variable costs, including productivity and others that change the supply of and demand for labor costs change with the number of products offered for sale. These are called variable costs. Variable costs include the wages of sales people or other employees, raw materials, electric power to run machines, and the cost of maintaining inventory. We believe that the lack of alternative energy vehicles available and when high fuel costs will drive the costs at times. Factors affecting fixed costs Factors affecting fixed costs include costs that do not change with an increase or decrease in the amount of goods or services produced. Fixed costs are also an expenses that has to be paid by a company. It is one of the