I will discuss how each shift. This service has been around for awhile, in this case since 1957, and appears to be in the mature phase. This essay will discuss the effect of supply and demand based off the data from the economic computer simulation from class. The marketing team for the new Listensoft software needed to accurately forecast the production capacity of the new product and the pricing strategy. Competitive Price Moves When I was increasing the prices during the weekdays and decreasing the prices during the weekend then the competitor was trying to match my prices and also lower my prices.
Competitor´s price Round 2 1. Check it out Pricing News Daily which has had nearly 4000 views thanks to all our readers and contributors!!! The concepts of microeconomics that trigger the changes in pricing which in turn causes shifts on both curves will also be discussed in detail. A car may be rented for a few hours or even for few months at a stretch. Business plan, Car rental, Economics 1867 Words 8 Pages. I will explain why I have categorized these principles or concepts as macroeconomic or microeconomic.
Neither you, nor the coeditors you shared it with will be able to recover it again. Car rental is an alternative to car ownership. Having a small pricing differential between your mid-tier and top-tier offerings and offering other valuable benefits with the top tier can be a useful strategy to entice customers to choose the top-tier option. With a promotion, advertizing and franchizing strategy, the company reached to catch 7% of the market shares in 2012. According to Harold Bingaman and Craig Koch are of the opinion that there has been a sudden increase in the demand of the cars since the new program has been implemented The major concern of Bennet E.
This worked out very well as can be seen by my high score. There are plenty of sidewalks and street systems for easy access to the highway. The paper will also determine one shift of the supply curve and one shift of the demand curve from the simulation, as well as why these. Over 12 simulated months, students must analyze price sensitivity between leisure and business travelers and consider strategies that maximize rentals across weekdays and weekends in each city. In respect of setting the pricing level, we calculated the price elasticity of demand to give us an insight into the Each city had a different revenue mix between business and leisure users. How did you use this information in your pricing decisions? Overall strategy: We adopted a strategy of offering the highest price achievable whilst maintaining 100% capacity utilisation irrespective of market share.
The simulation is asynchronous and can be assigned for homework. Table 1 3 Month Data Week 1 2 3 4 5 6 7 8 9 10 11 12 Demand 126 200 243 167 132 211 243 1667 131 208 251 171 Table 2 Standard. External factors Universal Demand Behaviour Margins Capacity vs. I have decided to keep a blog to document and report the sales activities with in Universal. Alfred Marshall, Consumer theory, Economic equilibrium 819 Words 3 Pages Supply and Demand Simulation Paper Principles of Microeconomics 365 Matthew J.
Tampa had more business users, Orlando and Miami had more business and leisure users compared to Tampa. Leisure Customers were catered through intermediaries- Travel Agents; Advertising and Promotional Events. Unrented cars have associated holding costs while running out of cars is lost opportunity for profit. This task is especially difficult because human… 1024 Words 5 Pages Supply and Demand Simulation Supply and demand plays an intricate role in the amount, price, and availability of products and services. How were you able to target a specific group of customers through pricing? The simulation names the user the property manager; responsible for vacation residents, new pricing for units, and advertising. The applying supply and demand concepts simulation guides users through making decisions for Goodlife, a management company for 2 bedroom apartments in Atlantis. This movement in the market place is gaining momentum.
Demand for rental cars can vary depending on the month and whether the location is more popular with business or leisure travelers. The basics such as the supply and demand had helped me a lot to understand the cost structure however, if more information and cost data would have been made available to me then I would have been able to make much better decisions A. Apartment, Economic equilibrium, Elasticity 1652 Words 5 Pages Activity 6- Pricing 1. With the everlasting increase in fuel, the consumer is looking for alternative ways to save money on fuel and at the same time be conscious about the negative impact that fuel and diesel have in our environment. Tried to avoid a price war, but gradually lowered price to increase utilization. Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. The size of the competitor was large and that competitor was also able to dictate the prices.
What kind of competitor were you up against? Demand for rental cars can vary depending on the month and whether the location is more popular with business or leisure travelers. Here we are going to analyze the sensitivity of price in respect of Florida car agency to maximize the profit across weekends and weekdays. In addition, factors affecting these curves such as changes in population, government, employment, and trend all take part in shifting these curves causing pricing or rental rates to increase and decrease accordingly. This web-based simulation presents an engaging context in which students develop their knowledge of pricing by managing a rental car operation Universal in Florida and improve regional performance by developing a pricing strategy. Atlantis is a small city with open spaces, low population, and a low crime rate. A description of supply and demand from the simulation and how to apply it in the workplace is included. I also think that if I was more aggressive from the very beginning of the simulation, I would have been able to make more money but sometimes you don't do what is necessary, as I noticed that sometimes I thought I was making an aggressive move but rather was shown that it made no difference and I could have pushed harder as the market would have supported it.
The simulation was run across three cities in Florida, Tampa, Orlando and Miami. Table 2 confirms this, as it shows the percentage contribution of weekday car hires as a percentage of the overall contribution of each region. These include from simple security devices, such as steering lock, gear lock and immobilizer, to a more advanced security system that can track down stolen vehicles. The global car rental market primarily serves people who temporarily need a vehicle. When traveling long distances, moving your home, or when you need a vehicle after your own was damaged in an accident, rental car companies provide a solution. This paper will discuss two microeconomics. We wanted to determine which company has the best overall pricing strategy.