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Katie Edwards

NBN to drop CPI+ price mechanism (ITWire) - 0 views

www.itwire.com/...op-cpi-price-mechanism-quigley

CPI price mechanism consumer goods internet

shared by Katie Edwards on 20 Oct 11 - No Cached
  • Katie Edwards on 20 Oct 11
     
    The National Broadband Network Company (NBN) wanted to slowly reduce their internet connection prices to benefit consumers. However, any price mechanism they try is just increasing the CPI (Consumer Price Index). The CPI measures change in price level of consumer goods and services purchased by households; in this situation specifically internet providers. We all obviously need the internet, but many companies are struggling with correct pricing, a key component of their business. They are beginning new projects that need more money, which in turn causes a price hike. The article uses a lot of technological 'lingo' with statistics to back up plans of price comparison.
Katie Edwards

Don't Be Fooled By The January Effect: Sirius XM Radio Isn't A Sound Investment - Seeki... - 0 views

seekingalpha.com/...radio-isn-t-a-sound-investment

economies of scale radio consumer technology

shared by Katie Edwards on 19 Jan 12 - No Cached
  • Katie Edwards on 19 Jan 12
     
    Sirius XM Radio was once saved the "January Effect" thanks to their merger several years ago. They experienced the benefits of economies of scale as a much larger organization, which brought the two previous companies back up in stock. However, they are still facing many challenges because economies of scale do not solve all problems. Some of the issues: "A low profit margin of 9.2 percent, and an astronomical Total/Debt to Equity of 492. Also, the rapid change in broadcasting technologies, and the Internet radio gaining ground, it is a matter of time before satellite-radio becomes obsolete. Satellite subscriptions are part of consumer spending that is usually negatively affected by a weak economy, consumers will not spend excessive money on this."
Lola Z

Off With Their Heads! The Fantasy Google Monopoly - Forbes - 2 views

www.forbes.com/...ds-the-fantasy-google-monopoly

monopoly

shared by Lola Z on 04 Feb 12 - No Cached
    • Lola Z
      Lola Z on 04 Feb 12
       
      Here it deals with the concept of menacing monopoly. Google isn't doing anything "evil", but it is just so comprehensive that everyone can't help to use it.
  • . Microsoft’s impressive growth of Bing in a mere two or so years shows that new competition in search can come at any time.
    • Lola Z
      Lola Z on 04 Feb 12
       
      There is actually competitor of Google. It is Microsoft's Bing.
  • ...10 more annotations...
  • They rest on their laurels and do not innovate.
    • Lola Z
      Lola Z on 04 Feb 12
       
      If there is a monopoly in industry, consumers can be end up in disadvantage as the monopolist refuses to innovate and discourages other firms which can potentially innovate from entering the industry.
  • Google continues to innovate in many spheres of Internet and e-commerce activity, from mobile operating systems to books to social media.
    • Lola Z
      Lola Z on 04 Feb 12
       
      However, we can see that Google is innovating and giving consumers advantages. It is a benign monopoly.
  • Google search is a free product, supported by advertising. And that advertising is not priced by Google itself, rather through an auction among advertisers bidding on the use of search keywords. Google doesn’t control price, let alone raise prices.
    • Lola Z
      Lola Z on 04 Feb 12
       
      Here again, Google is shown to be a benign monopoly. Monopolists usually control the price freely, and raise the price as high as they can to earn profits. However, Google is free. Even if advertisers post commercials on it, the price is not set by Google.
  • Monopolists also have no incentive to reduce costs and increase efficiency, because the absence of competition assures them of selling products very profitably.
  • Google doesn’t act like a monopolist and shares none of the characteristics sheltering classic monopolists from competition. Its astounding success in Internet search is universally regarded as a consequence of better design, superior code, better products and plain old hard work.
  • an “evil” monopolist
  • Of course, it’s unlawful to monopolize a market, not to become a monopolist as a result of superior business acumen or execution.
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