1. Market Analysis: skis Market
ECON 301, Team: Ziyuan Tian, Yi-an shih, yunji bang
Differentiation of Product:
- Materials; Technique; Brands Loyalty; Design; Function
Low Barriers:
- General Raw Materials,
-Low threat of substitutes
Market Analysis: skis Market
Complement Products:
- Skis boots, bindings, and ski poles;
Imperfect Substitutes:
- Snowboards and snow sleds
Market Type:
- Monopolistic Competition
- Low Barriers, Diversified Good
- Private Good, Experience Good
Five Forces
- Rivalry: other similar size firms, share producer surplus, money in early stage
- Threat of New Entrants: the scale of benefit
- Consumers: Individual buyer, Ski field company
Price, Preference, Brand Affect, Design, Function, Personal Style
- Suppliers: Purchased raw materials from other companies
- Government: Standard Quality Test
Long Run Monopolistic Competition
Price
Demand Curve shifts to the Left
No economic profit MC
ATC
ATC=3 D MR Q2
Quantity
Q2 < Q*
Price
#abP1=Consumer Surplus
Should I enter this business?
- Analysis: Elastic Market, Enough Producer Surplus, No Specific Regulation
- Strageties: Differentiating Products, Creating Brand recognition, Different Market Strategies
Develop Innovative Technology for Marginal Benefits
stay in the business MC
Economic Profit a
ATC P1 b P2 D MR Q*
Quantity
Short Run Monopolistic Competition