Free Essay

Market

In: Business and Management

Submitted By thall
Words 2512
Pages 11
Current Market Conditions Competitive Analysis
The demand for electric motor vehicles is an established and ever growing market worldwide and we must consider that it will eventually develop into a competitive market with similar electric vehicle products. A paramount challenge for Tesla and our potential launch as competition in the electric vehicle market is meeting realizing the break even point is possible given production capacity. Demand for functional, quality electric vehicles is high and one consideration that has given stockholders pause in considering their investment is determining whether Tesla can meet production requirements to break even and eventually profit. There is a strong demographic for customers of electric cars as there are many Americans interested in saving money on fuel consumption and being more ecologically responsible with lessened emissions and carbon footprint. California is a stronghold for the electric automotive market because of higher gas prices and belief system of those who live there. The electric vehicle (EV) market is growing fairly rapidly according to new analysis from the Centre for Solar Energy and Hydrogen Research — with more than 320,000 new EV registrations in 2014, bringing the total global market up to 740,000 vehicles. These numbers will continue to grow as fuel prices continue being instable and as new EV makers figure out ways to capture potential buyers with state of the art design and performance technology. Generating enough units in production to satisfy the break even point has been a key consideration for Tesla and any future electric car company would certainly have to compare their startup process to that of Tesla motors.
Tesla Motors is a technologically advanced company who looks to change the functions of automobiles, as we know it. With a highly engineered product offering, this car surpasses competitive market conditions with similar offerings. Not only does this car enhance the effects of convenient long-term traveling, it also provides autopilot features, charging stations, and luxury items that other electric cars do not provide. Tesla Motors continually attracts a high demand of customers because there is nothing that completely relates to the offerings this vehicle brings forth. While the sufficiency of productivity and manufacturing rates of this automobile are currently in question for Tesla motors to achieve fiscal success and prosperity, it ultimately also comes back to the consumer demands, market requirements, price points and price elasticity. A common objective of the EV market product lines is for new and established companies to set price points that balance desired profits for shareholders with customer satisfaction
History of the Organization and Description of the Product
Tesla Motors, Inc, is synonymous with technological innovation. Historians will recognize Nikola Tesla's work with alternating currents in the war of currents in the late 1800's. Tesla motors founder Elon Musk is a very well known and brilliant billionaire entrepreneur who has taken electric motor technology to incredible levels, giving their products performance and service ranges unparalleled in the industry. Tesla motor’s has garnered the investment funds and backing of the public as consumer confidence in Musk's vision have manifested into investment capital and production facilities. Tesla's approach is industrious and well rounded and he has also steered the company into potential public transport with the advent of a high-speed train system that will simplify and speed up tricky and time-consuming Californian commuter traffic. There is no doubt that Tesla motors technological innovations give consumers and investors the confidence to invest in products and the company alike.
Tesla Motors was established in 2003, as a group of engineers in the Silicon Valley believed in the eco-friendly establishments of electric cars as opposed to gasoline-powered engines. Focusing on the power of the vehicle, Tesla Motors established a car with innovative engineering to best serve other competition and competitors. The Tesla car runs completely without gas, oil changes, or loud motors. Tesla’s product offering is a car ahead of its time in automotive advancements, offers a realm of advancements helping the human society feel safe in his/her automobile. A product is simply defined as“…the good or service for the target’s needs” (Perreault, Cannon, & McCarthy, 2011). As more and more people are looking to save money by making long-term investments, the Tesla proves to meet the consumers needs. As marketers' work to best satisfy the needs of the customers, many reviews stated that this car was very incompatible to the busy lives of traveling Americans do. As the launched methods of autopilot features within the car, charging stations, and customer safety feature, this company has shown significant growth over the past few months. “Deliveries over the first three months of 2015 came in 500 vehicles above Tesla's initial forecast, and represent a 55% rise over the same period a year earlier” (Stoll & Ramsey, 2015). The more that this company has demonstrated the effort to satisfy the consumer wants and desires, the direct effect has demonstrated growth and production throughout the company.
Price Elasticity of Demand
Price elasticity of demand is summed up with the following formula: Price Elasticity of Demand = Changes in Quantity Demand / Changes in Price. In other words, if a good is perfectly inelastic, the demand will not change when the price changes. If a good is perfectly elastic, the demand will change equally to the percent change in price. In the automotive market, goods are considered very elastic. Consumers have many alternatives to choose from and can easily find substitute cars when necessary. For instance, if Chevrolet decided to raise it prices by twenty-five percent, this would likely create a large decrease in demand. Consumers would simply switch to other auto brands that offer lower prices for highly similar products. This same concept is true for the Tesla Motors Company, they will need to maintain prices that fall near the middle of the market. Some economists argue that the pricing only appeals to the one percenters and they may be disregarding much of the fuel based market in that the average prices for a good qualitry vehicle in the U.S. have risen considerably in recent years. Tesla Motors has displayed a significant properties that separate its offering compared to many other electric cars. When a product that is so unique and different hits the market, Tesla Motors attracts more customers simply because currently, there is nothing else comparitivly like this car in the stance of innovative and technological advancements.
Tesla vehicles are priced to the middle or higher end of the market and due to the lack of competition in the electric car market they will experience success in that price point. They’re fixed and sunk costs help to determine their required pricing and their goals for quarterly earnings and profits are a considerable factor as well. Tesla may determine in order to satisfy demand and create an equilibrium that they may need to raise prices, especially if production capacity is not up to a point where the company can meet demand and break even or profit. It is conceivable that Tesla has some elasticity in price in that their competition for similar products is virtually non-existent. The price of gasoline or diesel fuel may be the largest contributing factor to the price elasticity of tesla products. Also a potential affecting factor is the urbanization of neighborhoods nationwide where people are not driving as far to work or possibly utilizing public transport.
Technological Innovation
Ultimately, Tesla Motors is attempting to create a new electric car that will solve the fuel and smog crisis in America. Tesla motors continues to monitor other automobile companies that manufacture electric or hybrid cars that are fuel efficient and give consumers the healthier and green alternative vehicles. With new editions and modifcations to the Tesla offerings, Tesla Motors continues to offer a unique incentive to customers. This brand has a massive amount of capital that can be invested into these groundbreaking markets.
The Relationship between Labor & Capital Employed Capital employed can be summed up with the following formula: Capital Employed = Total Assets - Total Liabilities. This is the total value of shares that are vested into the company’s ownership structure. The amount of labor can be represented by the human capital that the firm needs to meet market demand for units produced and turn an appropriate profit. In order for Tesla Motors to launch a new electric car it will need to increase the amount of labor and machinerty infrastructure to manufacture this new product. If shareholders approve of this direction for the company, the capital employed may be reinvested into expenditures to meet this goal. As the amount of labor increases, the capital employed will decrease. This occurs because of a higher amount of working capital is needed to fund the salaries and benefits of workers. As for the relationship of dimishing returns of productivity, a fixed amount of capital invested in an EV plant may be considered. If the plant is understaffed the amount of labor may likely increase, for a time the product will be increased per unit of labor applied to the capital. After the point is reached where the plant is at ideal productivity numbers with a full staff, an increase in the number of laborers to achiever greater output of units will give less than a proportionate return per laborer employed. This will be true for many reasons including but not limited to personnel management issues, machinery limitations, space considerations and increased need for potentially disturbing maintenance. In other words, as the amount of labor is increased the total product will be increased but the product per laborer will be diminished. The law of diminishing returns is at work.

Factors Affecting Variable Costs, Including Productivity The single, most important, variable cost is the specific automotive parts which are used to manufacture this new car. Specifcally, market prices of battery packs, cooling systems and surrounding electronics will continue to be a variable cost in the EV market. Tesla Motors already has a well-established manufacturing base that can produce electric cars and distribute across the globe. If demand suddenly surges for electric cars, the price of raw materials could skyrocket, as well as the need for new vehicles in the EV market. A slight decrease in productivity may occur to train new employees about the new car, but otherwise, productivity should remain virtually unchanged as production technology also increases.
Factors Affecting Fixed Costs
Fixed costs will not change when the new fully electric SUV/car is introduced in America. The company’s current facilities are more than adequate to handle the launch of the new car. The main materials needed in this project are automotive frames and body parts, industrial automotive which are already, existing fixed assets. Steel prices have remained stable in the last decade and EV manufacturerers can rest assure knowing they have fixed costs they can make balance sheets and profit estimates around.
Changes in Demand
According to Colander (2013) there are five different factors which can cause demand to shift. In no particular order those are: taste/preferences, income, substitutes, expectations, and taxes and subsides (p. 80). On the demand should there be a shift then the line moves to the right with an increase and to the left with a decrease. Unlike a change in the quantity demanded, which occurs when price changes, a shift will change the price point people are willing to pay for the product. As with all vehicles taste and preferences will play a big role on demand in this market. If consumers prefer to be able to travel long distances without having to stop for over an hour to get a full charge on their vehicles then demand for these types of products will decrease. However, an increase in demand could also come if gasoline & diesel fuel prices rise to the point that buyers are no longer interested or cannot afford to pay them.
Changes in Supply
When looking at the supply curve there are also five factors which can cause a shift in supply. They are the price of resources, technology, expectations, taxes and subsides, and the number of producers in the market (Colander, 2013, p. 86). In a world where we as a country look to find ways to live a cleaner life by utilizing cleaner energy there are opportunities for companies which specialize in this to receive subsides from the government. When a corporation receives a subsidy from the government this makes their costs to supply lower which in turn leads to an increase in the supply. In the same way new technology of electric battery powered cars decreased the supply for gas and diesel fueled vehicles the same could happen here. If technology continues to advance and we are able to find a better and more reliable source of fuel than electricity then this technology could cause a decrease in the supply of electric vehicles.
Market, Competitors, and Customers
In the automobile industry there is not a large amount of suppliers, one of the barriers of entry could be the extremely high costs it would take to get entry, and since there are not many suppliers the companies must watch each other and react to different moves each company makes. Because of these characteristics the market would best be described as an oligopoly. Competitors would be other automobile suppliers such as General Motors, Ford, and Toyota. Initially potential customers would be dealerships who provide vehicle sales to consumers who seek personal transportation. However, since the product being sold is also based on storing energy in an efficient manner there are opportunities to expand the business which both the competitors and customer pool would increase. On the competitor side the competition could be any old source of energy such as gas or coal or other battery suppliers like Duracell. Consumers would be anyone wanting to have independence from the electric grid.
Conclusion
Tesla Motors are manufactured and shipped across the globe. As the demand for electric cars increases, the overall need and desire for specific motors will also accelerate. Tesla Motors has a great launch and establishment of a car technologically advanced beyond its years. From a competitive standpoint, this car still reins ahead of other similar electric automobiles and still consistently displays market growth. The productivity, resources, as well as expectations all set forth by customers are setting this company aside from other competitors.

Reference
Clean Technica. (2015, March). Electric Car Demand Growing, Global Market Hits 740,000 Unit. Retrieved from http://cleantechnica.com/2015/03/28/ev-demand-growing-global-market-hits-740000-units/
Colander, D. (2013). Microeconomics (9th ed.). Retrieved from The University of Phoenix eBook Collection database.
Perreault, W., Cannon, J., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill Irwin..
Stoll, J., & Ramsey, M. (2015, April). Tesla First-Quarter Car Deliveries Rise Above 10,000; Tesla looks to accelerated volume gains for rest of year. Wall Street Journal. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/1669458021?accountid=458

Similar Documents

Premium Essay

Market

...Definition Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company.� Market share can be measured in several ways.� However, the two most important measures are by: - Sales revenue - Sales volume (the number of units sold) Examples of market share Market share information on the UK clothing retail market is summarised below: Position Brand Sales(�'m) Market Share (%) Number of Outlets 1 Marks & Spencer 2,743 10.2 315 2 Next 1,708 6.3 333 3 Arcadia 1,609 5.9 1,603 4 Debenhams 1,076 4.0 97 5 Asda 963 3.6 215 6 Matalan 776 2.9 137 7 Tesco 710 2.6 588 8 Bhs 631 2.3 163 9 New Look 552 2.1 573 10 John Lewis 482 1.8 25 Total of Top 10 11,250 41.8 UK Market 26,911 100.0 Source; Deutsche Bank 2002 The UK clothing market, as defined by Deutsche Bank in their recent report, is valued at �26.9 billion.� It is one of the most concentrated retail markets in Europe, with the top ten retailers accounting for some 42% of the market. What is market concentration?� It is the proportion of market value that is owned by the leading brands or products/companies in the market.� Where the market leaders own a large part of the overall market, the market is said to be highly concentrated.� By contrast, where the market leader has a relatively small market share and there are many other competitors, a market is said to be "fragmented" There has been little change in the concentration of the UK clothing......

Words: 483 - Pages: 2

Premium Essay

The Market

...The market, its definition A market consists of all the consumers who purchase a particular type of good or service. The market may be sub-divided into separate segments each of which can be considered to be a separate market in its own right. It is very important for a business to be able to define its market [1]: 1. So that it can estimate the size of the market 2. So that it can forecast the growth of the market 3. To identify the competitors in the market 4. To break the market down into relevant segments 5. To create an appropriate marketing mix to appeal to customers in the market. There are different types of markets for example: Business-to-Business (B2B) markets in which a businesses customers are other businesses. Business to Consumer (B2C) markets in which businesses sell to other customers. . Markets are typically structured into segments. Primary segmentation is between customers buying entirely different products. [2]. Contribution of marketing to achievement of its business objectives The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers. Every organisation needs to have clear marketing objectives, and the major route to achieving organisational goals will depend on strategy. It is important, therefore, to be clear about the difference between strategy and tactics [3]. . Marketing can thus be seen as the process of developing and......

Words: 5306 - Pages: 22

Premium Essay

Market

...Market equilibrium Consumers and producers react differently to price changes. Higher prices tend to reduce demand while encouraging supply, and lower prices increase demand while discouraging supply. Economic theory suggests that, in a free market there will be a single price which brings demand and supply into balance, called equilibrium price. Both parties require the scarce resource that the other has and hence there is a considerable incentive to engage in an exchange. Price discovery In its simplest form, the constant interaction of buyers and sellers enables a price to emerge over time. It is often difficult to appreciate this process because the retail prices of most manufactured goods are set by the seller. The buyer either accepts the price. or does not make the purchase. While an individual consumer in a shopping mall might haggle over the price, this is unlikely to work, and they will believe they have no influence over price. However, if all potential buyers haggled, and none accepted the set price, then the seller would be quick to reduce price. In this way, collectively, buyers have influence over market price. Eventually a price is found which enables an exchange to take place. A rational seller would take this a step further, and gather as much market information as possible in an attempt to set a price which achieves a given number of sales at the outset. For markets to work, an effective flow of information between buyer and seller is essential. Market......

Words: 1212 - Pages: 5

Free Essay

Market

...Current Market Conditions Analysis Many people dream of becoming a business owner or even running a militia million dollar company. Imagine planning and organizing a large corporation when considering developing a new product or service. Ironically this process always starts with a vision or a dream. For instance according to Mactrast (2013), the very first Apple iPod contained an Easter egg; that was accessible by circumnavigating to the ‘About’ menu and holding down the center button for a few seconds (12 Interesting Facts about Apple). This products development emerges from an individual’s visions and dreams. When offered the opportunity to turn ones dreams into reality team A. acts swiftly; the marketing director at Apple Inc. is requesting for team A to create a competitive market analysis to determine the new products; the iPad mini’s potential success. Team A’s analysis will focus on Apples primary competitor in the product’s market. This analysis will help the team produce recommendations on how the organization can maximize profit-making potential, and successfully compete in the new market. The team must also consider the effects the recommendations will have on the corporation. Apple Inc. is an American worldwide corporation founded on April 1, 1976; the main headquarters is in Cupertino, California. Apple Inc. is an international corporation that bazaars and enterprises software and hardware for computers and electronics ("Apple Inc.," 2013).......

Words: 1731 - Pages: 7

Free Essay

Market

... should  be.  This  approach  is   based   on   the   theory   that   only   the   government   can   make   fair   and   proper   provision  for  all  members  of  society.   b) In  a  free   market  economy,  the  decisions  and  choices  about  resource  allocation   are   left   to   market   forces   of   supply   and   demand,   and   the   workings   of   the   price   mechanism.   This   approach   is   based   on   the   observable   fact   that   it   generates   more   wealth  in  total  than  the  command  approach.   c) In  a  mixed   economy  the  decisions  and  choices  are  made  partly  by  free  market   forces   of   supply   and   demand,   and   partly   by   government   decisions.   Economic   wealth  is  divided  between  the  private  sector  and  the  public  sector.  This  approach   attempts   to   combine   the   efficiency   of   the   market   system   with   the   centrally   planned  system’s  approach  to  fair  and  proper  distribution.       Since  resources  for  production  are  scarce  and  there  are  not  enough ......

Words: 17959 - Pages: 72

Premium Essay

Market

...is a great idea. Given the perfectly competitive firm is a price taker, the firm supply determines the quantity of output to produce in order to maximize profits. The firm can't determine the product's price, hence, the idea of limited decision making. In addition, the firm can't change its fixed cost in the short run. Therefore, the firm must choose the level of variable inputs that results in the profit maximizing output level. Determining price is out of our control, given the competitive firm is a price taker; the price is determined through the interaction of supply and determined through the interaction of supply and demand in the market. Markets always move toward equilibrium, so the market can determine the price. However, its the price that makes quantity demand equal to quantity supply. DISCUSSION DR. SU COMPETIVE MARKET When more or some items are supplied than demanded, competition among sellers trying to get rid of the excess will force the price down, discouraging future production. The resources used for that item being set free for use in producing some else that is in greater demand. Conversely, when the demand for a particular item exceeds the existing supply, rising prices due to competition among consumers encourages more production, drawing resources away from other parts of the economy to accomplish that. REPLY I think in economics anything that is optimal, or efficient, or cost minimizing or profit minimizing has marginal or profit......

Words: 1480 - Pages: 6

Premium Essay

Market

... Issues and Concerns of Commodity Derivative Markets in India: An Agenda for Research Nilanjan Ghosh 1. Introduction Commodity derivative markets have traditionally been a contentious issue at various policy forums across the world, particularly with the imbroglio created by allegations from various corners that they encourage excessive speculation and are therefore responsible for the recent commodity price escalation. While this suspicion of excessive speculation in the commodity markets has always been there among policymakers in developing nations like India, it has become more widespread since 2008 in the wake of worldwide inflationary pressures on food and energy. The sudden deflation in the value of various assets underlying different derivatives, which includes commodity derivatives, in the wake of the global meltdown has provoked greater apprehension about the economic utility of futures markets. The suspicion has reached such a high that even the U.S., the biggest proponent of market forces with the most active commodity exchanges in the world, is considering new modes of regulation, and is also investigating the role of commodity derivative trading in the steep rise in prices of wheat, rice, and crude oil. On the other hand, ever since commodity derivative trading was allowed in India in the new millennium, there has always been a hue and cry against such markets, with the alleged notion of excessive “speculation”, though there has rarely been any evidence for it....

Words: 6878 - Pages: 28

Premium Essay

Markets

...imports of products into a country cannot provide an accurate market potential of the product. The market potential of a product manufactured by a firm depends on the total demand of the product and the total supply of the market. One thing to take a look at is quantity demanded. The quantity demanded of any product by customers is not constant. It varies with the price of the product. For example a decrease in price usually increases the quantity demanded. When a new product enters a new market through importation there is an increase in its price. This is due to the additional costs of shipping the product from the country it was manufactured in and the import duty and other taxes imposed by the nation. Therefore, a company could be exporting a lot of products to a new market but be losing profit margins because of increased expenses. To estimate the market potential of a product it is essential to look at the actual customers are. Another thing to consider is why they want the product and how the price affects them. Another reason is that they may be making the product domestically. Even when basic need is identified, research look for current trade flows to see what level of activity is in place. Just because goods are currently imported doesn’t mean they will be imported in specific countries. Initial screening evaluated the basic need for a product or service in a specific market. It evaluates markets relevant to product characteristics. This is a......

Words: 536 - Pages: 3

Premium Essay

Market

...OVERVIEW OF MARKETING OVERVIEW OF MARKETING 1 LEARNING OBJECTIVES After reading this module, students should: Know why marketing is important Know what is the scope of marketing Know some of the fundamental marketing concepts Know how marketing management has changed Know what are the necessary tasks for successful marketing management Know scope and importance of marketing Know what are the recent trends of marketing Know what are the different levels of market segmentation Know how a company can divide a market into segments Know how a company should choose the most attractive target markets Know what marketing mixes are. SUMMARY From a managerial point of view, marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders. Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Marketers are skilled at managing demand: They seek to influence the level, timing, and composition of demand. Marketers are involved in marketing many types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. They also operate in four different marketplaces: consumer, business, global, and......

Words: 8049 - Pages: 33

Premium Essay

Market

... 4) Marketing concept: customered centrered. The objective is not to find the best customer to your product but to find the right product for you customer. Focus on satisfying the needs and wants of target markets. 5) Societal Marketing Concept Another way of looking at the history of marketing: illustrated history of markets. Local Markets Mass Market segmented market market niches A series of made to measure markets. Examples of consumer goods for: * Local market: local newspapers, maroilles * Mass Market: Coca cola * Segmented Market: diet coke, cherry coke etc. * Market niches: baby care products, Ferrari (only a few customers because it is expensive) II- Marketing today Marketing is the endeavour of adapting organisations to their competitive markets in order to influence, in their favour, the behaviour of their publics, with an offer whose perceived value is durably superior to that of the competition. Lendrevie, Lévy and Lindon Many markets offerings consist of a variable mix of products and services. Marketing system: Key customer markets: Consumers: B to C Business: B to B Non profit Dual Marketing strategies: Marketing transactional marketing (of conquest) aims to increase the market share Marketing relationship marketing (of retention, loyalty) aims to increase the customer share (to maximise satisfaction) New marketing compared to conventional: Conventional | New | • Organize by...

Words: 700 - Pages: 3

Premium Essay

Market

...”To stay competitive, organizations must change with market conditions and customer desires” (MacVicar & Gooderham, p1). Classic Airlines is facing a difficult time in their history. The organization has lost many of its loyal customers and its remaining customers are flying less frequently. The organizations CEO, Amanda Miller has challenged the marketing team with improving their number of loyal customers while increasing Classic Airlines profitability and stock price. All must be accomplished with a 15% cost reduction. To assist in its growth strategy, Classic Airlines marketing team is looking at growing globally and adding the United Kingdom to their international market. This paper will review channel and pricing strategies Classic Airlines must consider to achieve its desired results. Justification of choice of international market – UK Loyalty is a difficult goal and the most marketers can do at times is to encourage consumers to purchase one brand over another. Classic Airlines choice for an international market is access to the vast number of air travelers each year in the United Kingdom. The Department for Transportation in the United Kingdom estimates that “carrying over 235 million passengers a year and over 2.3 million tons of freight. Demand for air travel is projected to grow in the medium to long-term. Department for Transportation has put in place a long-term framework that balances the delivery of social and economic benefits from aviation...

Words: 1661 - Pages: 7

Premium Essay

Markets

...deliberation. Initial market entry decisions have typically focused on country evaluations based on macro-economic data. While appropriate in providing an initial screening of countries, other factors, notably contextual factors, can provide important insights in assessing international market opportunities. The purpose of this paper is to examine the impact of context at four distinct levels. Design/methodology/approach – The literature on the influence of context on consumption and purchase behavior is reviewed to provide a framework to understand contextual factors as a means to refine entry strategy and develop effective segmentation strategies. Findings – A wide range of contextual factors exert influence on consumption choices and contribute to within-country heterogeneity. These are typically examined at the macro-level, but also need to be examined at the meso-level, micro-level and situational level to fully assess market opportunities and establish viable market segments. Practical implications – Examination of contextual factors provides a richer and deeper understanding of which international markets to enter and which segments to target. Within-country cultural diversity, dramatic economic and regional disparities and marked differences in the infrastructure need to be assessed. In particular, examination of contextual factors helps to shed light on heterogeneity within countries not only in customer behavior, but also in the nature of the market infrastructure.......

Words: 6454 - Pages: 26

Premium Essay

Markets

...known as Creation Units). Once the APs get these units, they provide liquidity to these units by offering to buy and sell through the stock exchange. They give two way quotes, buy and sell quote for investors to buy and sell the ETFs. ETFs therefore have to be listed on stock exchanges. There are many ETFs presently listed on the NSE. 3.2 SALIENT FEATURES An Exchange Traded Fund (ETF) is essentially a scheme where the investor has to buy/ sell units from the market through a broker (just as he/ he would by a share). An investor must have a demat account for buying ETFs (For understanding what is demat please refer to NCFM module ‘Financial Markets : A Beginners’ Module). An important feature of ETFs is the huge reduction in costs. While a typical Index fund would have expenses in the range of 1.5% of Net Assets, an ETF might have expenses around 0.75%. In fact, in international markets these expenses are even lower. In India too this may be the trend once more Index Funds and ETFs come to the market and their popularity increases. Expenses, especially in the long term, determine to a large extent, how much money the investor makes. This is because lesser expenses mean more of the investor’s money is getting invested today and over a longer period of time, the power of compounding will turn this saving into a significant contributor to the investors’ returns. Scheme A B Investment (Rs.) 10000 10000 Expense Ratio 1.50% 0.75% Term (Years) 25......

Words: 1846 - Pages: 8

Free Essay

Market

...nightlife. For no-nonsense Chinese food, check out dozens of sidewalk restaurants on Jalan Alor, open from 6pm until late. focus on clothes and music. You’ll also find a number of Indonesian restaurants near here. Maharajalela Just a few minutes’ walk from the Petaling Street market in Chinatown, famous for low-priced knockoff goods and good Chinese food. Pasar Seni Central Market is a one-stop headquarters for local crafts and souvenirs. KLCC The station opens into the base of the Petronas Twin Towers, Kuala Lumpur’s emblematic landmark. Behind the building is KLCC Park, a nice place to take children or enjoy the nightly fountain show. Plaza Rakyat This station connects to Hentian Puduraya (Pudu bus station), where you can find buses to major cities in western peninsular Malaysia, as well as to Singapore and Thailand. It’s also very close to Petaling Street (see Maharajalela). Masjid Jamek The mosque this station is named after is a classic example of the MoorishBritish-Malaysian style that dominates many of KL’s historic buildings. It’s very close to Little India, an interesting area any day of the week — and a must-see on Saturday nights, when a half-milelong Malay street market runs until 10pm. Bukit Nanas A short but strenuous walk up the hill takes you to the base of KL Tower, the highest structure in the city, offering panoramic views in all directions. Or, walk a few minutes east on Jalan Sultan Ismail to Jalan P Ramlee, where the nightclubs......

Words: 960 - Pages: 4

Free Essay

Market

...Pricilla’s Pretentious Provisions Where taste comes first! Pricilla’s Pretentious Provisions believes your taste buds should do the shopping. We offer an upscale market where the produce is hand-selected, meats are prime cuts, and our fish is flown in. If you are looking for the finest imported cheeses and other delicacies you have found the right spot. Products: * Gourmet Coffee and Tea * International cheeses * Fresh baked breads and cookies * Caviar and Smoke Salmon * Fresh Wild Caught Swordfish Steak * North Atlantic Lobster Tail * Wild Mexican White Raw Shrimp * USDA Prime Beef * Organic hand picked fruit * Broad selections of wines and desserts Price Because we place such high standards on fresh quality food our prices are higher than the average market. We hand select our products from the finest establishments to ensure our customers receive the best of the best. We believe taste comes first, and higher quality comes at a higher cost. We do offer a Taste Club membership that will allow you to earn points towards discounts and free items from our bakery. People In addition to providing our customers with the finest high quality foods we also strive in making every shopping experience an excellent one. Our staff will go through extensive training to ensure they are very knowledgeable in the products we offer. We will have on site at all times an executive chef in the kitchen to help any customers......

Words: 383 - Pages: 2