username2864572
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Hey, I had a business assignment last week and a question came up that I didn't know how to answer:
What are the implications of businesses operating in a large and highly competitive market such as the mobile gaming market?

It was a 20 marker
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ciaranokane
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They won't be in control of their pricing - they will be Price Takers in the market.(loads of implications to this: less control of profit margin, will have to differentiate their product in another way etc)
They will likely have to fight for market share because of how competitive the market is - again means developing a USP, likely have to spend heavy on r and d and promotion - added costs to the business
Mobile Gaming Market is a v dynamic market, meaning that consumer trends are volatile and therefore they will constantly be having to develop new products - makes it easier to gain market share short term with a hit game but market share will be hard to keep
Biggest factor and a great way to get some Eval marks is that it depends on the size of the business (it terms of revenue) as this will impact the amount they can spend on r and d and promotion.

Hope this helped, dm me if you have any more questions or don't understand my points. xoxo
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username2864572
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(Original post by ciaranokane)
They won't be in control of their pricing - they will be Price Takers in the market.(loads of implications to this: less control of profit margin, will have to differentiate their product in another way etc)
They will likely have to fight for market share because of how competitive the market is - again means developing a USP, likely have to spend heavy on r and d and promotion - added costs to the business
Mobile Gaming Market is a v dynamic market, meaning that consumer trends are volatile and therefore they will constantly be having to develop new products - makes it easier to gain market share short term with a hit game but market share will be hard to keep
Biggest factor and a great way to get some Eval marks is that it depends on the size of the business (it terms of revenue) as this will impact the amount they can spend on r and d and promotion.

Hope this helped, dm me if you have any more questions or don't understand my points. xoxo
Thank you so much, what do you mean that it would be easier to gain market share with a hit game? And I don't understand the 1st point either about them not being able to be in control of their pricing
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ciaranokane
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Because the market is so competitive they can't set prices because there are so many substitute products so if they price their products as too much then no one will buy it.
Since its a mobile game market they could gain market share with a hit game (application marks), especially because apps are not really a very loyal customer market - meaning a customer is less likely to not purchase a product just because its not the brand they usually play
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username2864572
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(Original post by ciaranokane)
Because the market is so competitive they can't set prices because there are so many substitute products so if they price their products as too much then no one will buy it.
Since its a mobile game market they could gain market share with a hit game (application marks), especially because apps are not really a very loyal customer market - meaning a customer is less likely to not purchase a product just because its not the brand they usually play
thank you so much
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