Master of Business Administration

Cover Sheet

Student Information

Full Name Aung Pyaye Phone Grade / Marks

Email address [email protected]

Module Information

Module Name Business Economics (ECO-7043)

Intake 8

Lecturer Name Dr. Win Min Than

Mark 20

Submission Date 12.July.2020

Word Count 1,485

Instructions to Students

▪ Submit your assignment on time.

▪ Use Times New Roman font, size 12, and double line spacing.
▪ Word Count must be between 1,400-1,500 Words, excluding cover page, references
section and appendixes.
▪ This case study answer must be your own work. You are required to acknowledge
any use of the published and unpublished works of others. Use proper referencing
system by providing in-text citations and reference list.
▪ Do take note that plagiarism is a serious academic offence.
▪ Your assignment should be checked with plagiarism-checking application, available
at the school. Submit the results along with your assignment.

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Assignment (I)

Effect of new technology on consumer electronics market.

Content

Acknowledgement Page 3

1. Introduction Page 4

2. Market condition of Consumer Electronics and Relation with New Technology Page 5

2.1Effect of New Technology on Consumer Electronics Supply Page 5

2.2 Effect of New Technology on Consumer Electronics Demand Page 6

2.3 Case Study for Effect of New Technology on Mobile Phones Page 8

3. Conclusion Page 9

References Page 13

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Acknowledgement

First of all, I would like to thank our respectful lecturer of this Business Economic Subject, Dr.

Win Min Than for her great support, patience and clear explanations not only by the related courses

described in the text book, but also for sharing the valuable experiences and knowledge sharing to

have better understanding of the learning subject.

In addition, I would like to describe my appreciation and gratitude to all the beloved respondents

and very friendly and helpful classmates from Pacific Prime Business School.

Finally, I would like to express immense thanks to all people who contributed make this

assignment successful.

12th July, 2020

Aung Pyaye Phone

Batch 8, Lincoln MBA Program.

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1. Introduction

The natural resources all around the world are transformed into various types and then again

modified and developed for better use and helpfulness for human beings by investigations,

researching, developing new methods and innovations. These modifying methods are termed

as new technology. Those new technologies are developed in different sectors and industries,

such as in health care products, consumer electronics products, food products, transportation

utilities and so on. And there of course, depending on the advancement ideas of the new

technology, there are impacts on the new products and its related market as well.

Among those various types of products, consumer electronics products which is also referred

to as Brown Goods, play a major role in our daily activities and the related new technologies

for consumer electronics are also continuously developing. In early 20th century, the consumer

electronics products were started to introduce. In 1960s, one of the first well known consumer

electronics products, “Radios” was developed. Almost every family had got radios in those

times and it was really a popular consumer electronics product. And then later, technologies

advancement had been continued and new digital technology were developed from old analog

system. The consumption of the consumer electronics products in daily use, especially for

entertainment, communication and home-office activities are also increasing each year. It is

expected to reach $2.9 trillion for consumer electronics sales in 2020. Consumer electronics

market is dynamic and competitive, and also the developing new technologies are modernized,

impressive and interesting. The impact of new technologies on consumer electronics products

become most exciting, and thereof, this assignment is aimed to research the effect of new

technology on consumer electronics market.

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2. Market condition of Consumer Electronics and Relation with New Technology

The global consumer electronics market had down trend from 2011 to 2013, however, it has

been revamped to increase gradually and recovered 3.7% of market growth in 2017 due to the

technology advancements and innovations. Productions and market competitions are more

intensive, especially in China and India.

Being seen the changes in technology play a major role in the market growth of consumer

electronics, the effect of new technology on invisible hands is analyzed in this assignment

whether it enhances or obsoletes or how it influences by distinguishing the movements and

positions of the supply and demand curves.

2.1 Effect of New Technology on Consumer Electronics Supply

The change in the supply shall shift the supply curve. Factors affecting the supply curve

whether to shift right or left are based on the prices, numbers of sellers, technology and so on.

Supply shifting curves are described below.

When the cost of production is high and the quantity of supply is low, the supply curve will

shift to left and conversely, when the cost of production is low and quantity supply is more,

and the supply curve will shift to the right.

The technology advancements improve the production efficiency, reduce the labor cost,

enhance the product quality and increase the market demand by lower price. Since, the

technology advancements reduce the cost of production and will result the shift to right in

supply curve. Computers and televisions are good examples that can be seen obviously in

market, which are available at lower price and better quality than in previous decades. By the

Bureau of Labor Statics, the pricing index for computers had declined to 96 percent from 1997

to 2015 and within the same period, televisions pricing index had also declined 94 percent.

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Laptops are also another good examples. Faster processing CPUs and more functionalized

systems are equipped in new laptops however, the prices are relatively lower in thousands of

dollars than the old version laptops. This is due to the new technology advancement of lower

cost production.

Fig1. Supply Curve will Shift to the Right by New Technology Impact of lower cost production, more supply quantity

The manufacturers of consumer electronics are continuing for technology advancement to have

lower cost production and to have the competitive advantages of their products by quality

improvement. Thus, due to the effect of technology advancement, the supply curve will shift

to the right and there is positive impact on supply.

2.2 Effect of New Technology on Consumer Electronics Demand

The change in the demand shall shift the demand curve. Factors affecting the demand curve

whether to shift right or left are based on population, prices of related goods, prices of

substitutes, income, customer preferences or tastes and or buyers’ expectations.

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Change in price result the change in demanded quantity which will be affected to the movement

of the demand curve. When the product prices are going down, customers will purchase more

and demand will increase. And in vice versa, when the prices of products are going up, the

demand will decrease.

Fig2. Demand Curve movement due to Price changes

New technology can effect the price changes on the consumer electronic products in different

way. Some of the products prices are increased with new technology, example; smart phones

prices are increasing year by year as the new technology are applied, whereas some products

prices are lower than previous models even though better technology are applied, example;

televisions are supplied in lower price than previous models, although those are now advanced

to smart TVs.

Changes in technology will affect the demand of product in different ways. The new

technology can increase the demand of the new product in the market meanwhile, it can

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decrease the demand of the old or existing product which was introduced by former

technology.

Mobile phones are the good examples for the technology effect on the demand of consumer

electronics products. Apple I Phone 10s which was introduced in 2018 has now less market

demand than I Phone 11 which was introduced in 2019 due to the new technology advancement

and customers’ expectations even though the market price of the I Phone 11 is higher than its

former generation.

Thus, effect of technology on consumer electronics will have both potentials to move the

positions and shift the demand curve.

2.3 Case Study for Effect of New Technology on Mobile Phones

Mobile smart phones are obviously significant for technology advancement and the market is

rapidly growing up. Mobile phones were developed around 1980s for the purpose of

communication during mobilizations and travelling to substitute the fixed installed telephones

with microphone and receiver.

Fig3. Mobile Phones Design Transforming Trend Summary by New Technology

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Then the design, size and weight of mobile phones had been upgraded for the ease of carry and

usefulness. Later around 2000s, the digital technologies were introduced, mobile phones were

able to use internet, and again around from 2005, smart phones were started to introduced

which are more effective and useful in communication than its first generation of mobile

phones by video calling applications, internet, news, websites browsing, social medias, video

games and daily activities supporting applications.

Fig4. Mobile phone users trends in millions

Moreover, due to this technology advancement, mobile phones become daily essential tools

for us nowadays. By new software improvements and innovation of technology such as AR,

VR and 5G speedy network enhancement, the market growth of the smart phones are

increasing more and more, thus, new technology will shift the supply curve to the right and

shall have the positive impact on market growth.

3. Conclusion

The effect of the technology on consumer electronics will increase the market growth. It has

been expected to grow slightly above 6% from previous years’ market value within 2018 to

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2024. The revenue, users, sales channels, users by age and gender for the consumer electronics

market is listed below.

Revenue in million US$

500,000 446,117
450,000 415,385 433,281
392,127
400,000 363,973
350,000 323,911
285,452
300,000
242,309
250,000
200,000
150,000
100,000
50,000
-
2017 2018 2019 2020 2021 2022 2023 2024

Revenue in million US$

Fig5. Consumer Electronics Revenues Trends

(A) Although there would be investment cost for research and development for new

technologies, the new technology advancement reduce the cost of production, consumer

electronics manufacturers are investing more, producing more and supply more quantities

thus, resulting the revenue trend keep growing each year.

Users Populations in millions

3000
2512.7
2500 2320.3
2127.9
1900
2000 1658.6
1428.9
1500 1194.4
1007.6
1000

500

0
2017 2018 2019 2020 2021 2022 2023 2024

Users Populations in millions

Fig6. Consumer Electronics Users Population Trends

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(B) World population is increasing, the consumers are enjoying new technology than in

previous decades, user volume of consumer electronics is also increasing.

User Percent by Age

40.00%
34.70%
35.00%

30.00%
24.80%
25.00%
20.80%
20.00%
13.90%
15.00%

10.00%
5.90%
5.00%

0.00%
18-24 years 25-34 years 35-44 years 45-54 years 55-64 years

Fig7. Consumer Electronics Users by Age (%)

(C) The majority user age group are those who are generally prefer the new technology and

update trend, new technology on consumer electronics shall have a good impact for

customer interest and higher demand.

Percent

34%

66%

Male Female

Fig8. Consumer Electronics Users by Gender (%)

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(D) The majority customer group for consumer electronics are male, who are generally more

interest in new technology, the technology advancement on consumer electronics will have

positive trends.

As per conclusion (A) to (D) and as final summarizing, the effect of new technology will

generally help to increase the market growth of the consumer electronics market, while in more

detail, new technology will shift the supply curve to the right however, it will shift the demand

curve to the right for new product and will shift to left of demand curve for old products.

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References

1. Consumer Electronics Market

https://www.newelectronics.co.uk/electronics-technology/consumer/

Accessed on 10th, 11th and 12th July, 2020.

2. Shift in Supply

https://www.economicsonline.co.uk/Competitive_markets/Shifts_in_supply.html

Accessed on 11th and 12th July, 2020.

3. Shift in Demand

https://www.economicshelp.org/blog/581/economics/changes-in-demand/

Accessed on 11th and 12th July, 2020.

4. I Phone Price Track

https://www.google.com/amp/s/www.statista.com/chart/amp/11067/how-the-iphones-

price-developed/

Accessed on 11th July, 2020.

5. Global Consumer Electronic Market to Hit USD 1787 Billion by 2024

https://www.globenewswire.com/news-release/2019/01/23/1704026/0/en/Global-

Consumer-Electronics-Market-to-Hit-USD-1-787-Billion-by-2024-Zion-Market-

Research.html

Accessed on 11th and 12th July, 2020.

6. Consumer Electronics Market

https://www.grandviewresearch.com/industry-analysis/personal-consumer-electronics-

market

Accessed on 11th July, 2020.

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7. Consumer Electronics Technology

https://www.newelectronics.co.uk/electronics-technology/consumer/

Accessed on 11th and 12th July, 2020.

8. Consumer Electronics Statics

https://www.statista.com/outlook/251/100/consumer-electronics/worldwide#market-

globalRevenue

Accessed on 11th and 12th July, 2020.

9. The advantages of electronics

https://matthewhohn.weebly.com/the-advantages-of-electronics.html

Accessed on 12th July.

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