The producer such as new company will be able to react the needs of the market; in other words, they can produce the stuff rapidly than Sony because they focus on producing just TV so they know how to maximize the quantity profit in short term. In economic term, they have the knowledge of how to run the company with the minimal costs; especially they can save the variable cost. Also, they can save the fixed cost rather than Sony in terms of producing TV. In this term, such a new companies have a lower budget to exploit the new machine or new technic because they just imitate the large company methods. Their fixed costs are based on the factory and wage; actually, they do not need to pay the high wage for the worker because their country is not high wage standard. So the can save a lot of money in terms of fixed cost. Also, their variable cost is mainly material fee, but this is the almost same with a large company. So we do not need to consider deeply. Such a new company can save the marginal cost because they only focus on producing the TV. On the other hand, large companies such as Sony need to consider the development cost for other products, so they need to high amount of marginal cost in terms of producing TV. Also, they need to keep the budget for …show more content…
However, it is difficult to entry because most of the company have the knowledge than how to produce the effective and the cheapest price in order to sell by the low price. Because this market structure is a competitive market, but actually such as an oligopoly because the most of the share has belonged to the large company, such as Sony, Panasonic, Samsung, LG and some new developing company. Large companies like Sony needs to come up with how to compete other company. And then, we can suggest the tactics to them using their characteristics and strong pushes the added value to the consumer. One method for them, that is we sell the product with the video game machine, such as PS4. Because Sony is the one of the most popular company who sells the video game stuff to the market. Video game stuff needs to use the high technology, so new company cannot imitate the making those stuff like a large company. If they sell with Video Game machine and discount, they would be able to urge to sell the TV more. However, the selling complementary goods do not affect to the selling TV. That is because consumers are thinking that it does not matter to play via whatever TV. Therefore, good tactics are that large company sells the both items, and then discounts them. The all of producing TV Company is categorized as “price-taker” because there is a bunch of product in the market and competing. So if