Paper Example. Market System Overview

The electronic market is wide, and it is supported massively by the advancement in technology and the need to ease operations and raise the efficiency process. In this sector, there is a wide range of buyers and sellers with the manufacturing companies acting as buyers of the labour provided by the households. The individuals working in this sector are offering this factor of production to ensure that the organizations are managing to realise their goals of producing high-quality commodities and in time when they are needed in the market.

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These same entities are the sellers of the electronic elements that includes the television sets, computers, and phones and their targets are the public that includes the same employees working for them. In this case, it can be noted that the operations in the market happen in a cycle for the buyers can also happen to be the sellers in the same industry.

The market for electronic commodities adopts the differentiated oligopoly market structures. There is a large number of companies in this sector, and they all produce alternative commodities, yet they are differentiated based on features. The companies are interdependent, and this shows that the actions of one entity are likely to influence the operations of another in the same sector. Therefore, these companies must consider the actions of the rival entities for them to determine the prices to charge for their commodities and the output levels to realise.

Whenever there is a change by one of the organization on matters regarding prices and output, all the others must respond to ensure that they remain relevant in the market. Some of the procedures that organization in this market use to remain ahead of their rivals is through advertising and offering quality services to their clients. They fear price wars among themselves, and when a firm lowers its prices, other entities are also likely to reduce. However, when an organization raises them, others are likely to become reluctant to undertake a similar procedure. The goods and services in this market include electronic goods, such as televisions and phones that are manufactured by the companies.

Some of the services provided include offering repair and after-sale services. The factors of production in this market are the land, capital, labour, and entrepreneurship. The land covers the various resources that are utilised in the production process, and this may not include just the land but the other components from the land like coals, copper, and natural gas. Labour are the efforts provided by the employees in a company with engineers playing a critical role in designing and manufacturing electronic devices. The tools and building cover the capital that is needed to undertake the processing. An entrepreneur tends to combine the other three production factors with earning a profit.

Some of the circumstances that can trigger the companies in the electronic industry to either produce more or fewer commodities are the demand and supply and the prevailing prices in the market. When the demand is high, they are likely to raise the quantity of production while a reduction in demand will trigger reduced production. Rising supply in the market leads to more commodities being provided to the consumers, and this may lead the production companies to lower their prices and production to ensure that they manage to beat the competition.

The incentives provided by this market is the advancement in technology that means that innovations are always leading to the production of quality commodities with powerful features. Therefore, companies are always in a position to make sales. The property rights that are prevalent in the electronic industry include copyrights, patents, trade secrets, and trademarks. Every organization has its rights that are not supposed to be infringed or copied by the rivals. Any attempt by an organization to forge the rights of another company is likely to lead to court battles.