Economy: Internet Connection Essay

Submitted By abimbolaluv05
Words: 698
Pages: 3

For a business like BT their products have different sensitivity to changes in price e.g. demand for a faster internet connection and phone line. Because of the bad economy the UK the price of BT’s product goes up and this will affect people and would not be able to afford it. But for a place like India where there economy has been improving for the past 3 decades affordability will not really affect them because there is enough money to generate and there will be increase in demand.
Increase in competition could adversely affect prices and demand for BT’S services and could decrease market share because they operate in markets that are highly competitive, they compete principally based on price, store location, customer service.
If the price of BT’s service goes up there will few orders and people will for a cheaper option.
If the market value of BT high and expensive it will affect demand because of the decrease in UK economy and might not really affect India because they are doing well.
For most products they have a number of different suppliers, which helps spread risk. Where possible with non-highly perishable products, we store stock in case of a production stoppage or lack of raw material. Supply chain is that they continually strive to improve their processes, always factor in risk, and produce contingency plans for all our products.
Because the BT is a parent internet company and they supply most of the other internet companies they tend to make more profit.

The competition of raw material is starting to look closer to home for essential raw materials as globalisation creates fierce competition for all types of product and also because the BT is involved in internet business and there are many competitors and they use the same resources so the raw material is starting to degrade

Because BT is a monopoly and government regulates monopoly, you can simply disconnect your internet connection and connect it to another internet connection. The price is more-or-less fixed, no matter what the demand is. This is an example of inelastic demand.
Understanding the dynamics of competitive advantage and the role played by procurement. They no longer talk about suppliers and customers as though they are managed in isolation, each treated as an independent entity.
The owner making sure the price is balance within the two different economy and also making sure that the prices of their product suits the economy.

Because of the impact monetary policy has on financing conditions in the economy (not just the costs, but also the availability of credit or banks’ willingness to assume specific risks) but also because of its influence on expectations about economic activity and inflation, monetary policy can affect the prices of goods, asset prices, exchange rates as well as consumption and investment. Interest rate cuts, for example, lower