Micro & Macro Economic Analysis - Electronic Arts Coursework

Micro & Macro Economic Analysis - Electronic Arts - Coursework Example in like manner if one variable falls, the other is destined too as well. Today In the modern ground, the opening of demand and affix seizes more emphases of business analysts in decision making. Demand and Supply theory in the modern world of fierce competition enfolds a great deal of attention for strategic homework to achieve competitive advantage everywhere rivals. The phrase Demand and Supply was first used by James Denham-Steuart in his book named Inquiry into the Political Economy which was published in 1767 (Steuart Denham et al, 1966). The theory discussed supra is supplemented by the characteristics of the mart in which the company exits. Conventionally there are four basic types of market structures. Perfect competition such markets have many buyers and sellers, none being able to influence harms. Oligopoly several(prenominal) large sellers who have some control over the prices. Monopoly single sel ler with considerable control over leave and prices. Monopsony single buyer with considerable control over demand and prices. The company with its gaming products operates in the Oligopolistic environment. Where there are several large producers but have a tendency to dominate study markets across the globe and influence some change in prices (Sloman, 2010). The concept of elasticity comes into play here. duck soup is the measurement of how changing one economic variable affects the other. Elasticity of demand can be of tercet basic types Price elasticity of demand measuring the dynamics of the quantity demanded by the change in price. Income elasticity of demand measures the dynamics of quantity demanded by changes in consumer income. Cross elasticity of demand measures the reactivity of quantity demanded by changes in price of another good. The concept in itself is a complete strategy. When ascertaining price of a product these elasticitys should be kept in mind (Sloman, 2 010). A critical analysis of the Micro and Macroeconomic environment of Electronic Arts Inc is conducted below in detail, to explain the equal to(p) without obstruction. MICROECONOMIC ANALYSIS The demand and Supply theory as discussed above are amongst issues one postulate to cater before planning product launch, indulging in price wars and budgeting for marketing. As the demand and supply curve has serious implications on the pricing strategies being adopted, there should be reasonable understanding of the root word matter before decisions are made. For the purpose of explaining the subject effortlessly, lets consider the example of the worlds largest video game developer Electronic Arts, Inc. Electronic Arts (the company) is Americas largest developer, marketer, publisher and distributor of video games. The company has a well diversified portfolio of products and geographical presence all over the globe. chthonian such circumstances the demand and supply implications are mor e severe for planning purposes as distinct conditions will be faced by the business analyst across geographical horizons. (Electronic Arts, 2011) Demand and supply has remained unchanged and unchallenged till date. There has always been a gap in the demand and su