Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 2, Problem 4E
To determine
The
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QUESTION 8
The table below shows how much the a non-Manchester United fan and a Manchester United fan would pay for an annual subscription to Manchester United TV. The marketing team at Manchester United decides to offer
two packages: a basic package that includes all games of the main, youth and women's teams (delayed by one day) and a deluxe package that includes the games (delayed by one day), recording of games from past
seasons, and exclusive player interviews.
Because there are many more non-Manchester United fans, the marketing team decides to offer the basic package for $30 to attract these fans. What is the maximum price they can charge for the deluxe package if they
want Manchester United fans to subscribe to the deluxe package rather than also subscribing to the basic package.
Manchester United TV Subscription (annual)
Value to a non-Manchester United soccer fan
Value to Manchester United fans
Basic Package
$30
$120
Deluxe Package
$40
$200
O 119.99
O 109.99
189.99
O 179 99
The mobile phone landscape looks drastically different today than it did three decades ago. In 1983,
Motorola accounted for seventy five percent of the mobile phone market. But by 2021, its market share
had shrunk to just 2.2%. How did this happen, and how has the mobile industry changed over the last 30
years?
In 1983, Motorola launched one of the world's first commercially available mobile phones-the DynaTAC
8000X. Motorola went on to launch a few more devices over the next few years and quickly became a
dominant player in the emerging industry. In the early days of the market, the company's only serious
competitor was Finnish multinational Nokia.
By the mid-1990s, other competitors like Sony and Siemens started to gain some solid footing, which
chipped away at Motorola's dominance. In September 1995, the company's market share was down to
32.1%. By January 1999, Nokia surpassed Motorola as the leading mobile phone manufacturer,
accounting for 21.4% of global market share. That put…
Draw a firm diagram to illustrate Foxtel’s business in 2021. Make sure to clearly and adequately label your diagram.
Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near-total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of the market share in 2013.
Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers.
Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of the content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021).
Chapter 2 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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