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Pattern of Change of the Particular Market Model

In: Business and Management

Submitted By d1227035
Words 450
Pages 2
1. Describe the business and explain the general pattern of change of the particular market model indicating how this change is likely to impact business operations.
I chose to talk about the music recording industry. The music industry is a complicated system of several different companies and firms that have gone through and adapted to many changes as time went on. The music industry is concerned with the profits gained from the actions of companies that tackle production, distribution, and publication of music worldwide (MarketResearch.com, 2012). In the recording industry, music is made of up of several different genres, styles and or techniques. Recently the industry has experience a wave of new technology with music downloads. Consumers can download songs view the internet using iTunes or an iPod. It benefits everyone involved because you are still purchasing the music in another form. The industry has suffered since napster entered the market with free music sharing amongst users. Lawsuits, piracy protection, and finger pointing have gotten the music industry nowhere as sales has continue to drop drastically. Consumers blame the industry for not developing talent that is in anyway interesting. They are producing music that is manufactured at the least bit interesting at times.
2. Hypothesize the basic short-run and long-run behaviors of the model in the business you have chosen in a “market economy.” Provide support for your assumptions and conclusions.
The basic short run in the music industry is that the company or firm may have only put out a limited amount of CD’s. As an artist grows and becomes more popular the demand increases for output of a CD. If the price is affordable customers will purchase several copies. If you lower the price of a CD to $9.99, customers will purchase more music. Consumers buy different bundles of goods as their relative...

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