Drug Use Select Two Tech

Drug Use

Select two tech stock companies that attempted to make profits from rising consumer demand after the crash. Analyze how they attempted to make a profit after the crash and discuss any unethical practices.

Both Google and Apple attempted to make profits from rising consumer demand after the crash. Google attempted to profit after the crash through utilizing free software and search services. These services were free for consumers which increased adoption rates. As more consumers used these services, the company could charge higher prices to advertisers who weren't as heavily affected by the crash. In many instances, the amount of time individuals spend on the internet is increasing. As such Google wanted to have a larger share of the individual's time through the acquisition of YouTube. Through Google Search and YouTube, the company could charge premium prices for advertising using these services. Apple, attempted to make profits through the extension of existing products. Through strategic product enhancements, the company continued to increase its market share. However, competition became fierce as competitors undercut the price of Apple products which increasing the products over value. In this instance, the company needed to innovate in products which it has yet to do in this current environment (Miguel, 2010).

Evaluate the change in consumer demand trends after the crash for each of the tech stock companies you researched. Provide examples with your evaluation.

In many instances, the change in consumer demand was not a result of the stock price. In fact, the decline occurred despite the stock price. For instance, Microsoft has struggled to innovate in the manner that Apple has. In fact it has lagged behind both Apple and Google in regards to search and smartphone adoption. The stock of Microsoft in particular has remained stagnant for the past decade at roughly $30 per share. However, the macro trends for its products continue to increase. Smart phone adoption has increased substantially over the decade, internet adoption rates has also increased substantially, particularly in emerging markets. E-commerce has also increased very rapidly. Stock prices have not reflected this natural shift due in part to company's inability to effectively compete. This has resulting in the stock crashes of companies like Microsoft. The stock declines, as the above question implies, is not due to change in demand trends, which look very promising. Apple too has fallen victim to a changing competitive landscape, the company also has failed to innovate in spite of growing demand and positive trends. Its iPhone product continues to lose market share to android and Samsung products. While consumer demand trends are increasing, competition for these consumers has become more competitive. As such, some companies are losing share while others are gaining it, which has resulted in the tech stock company crashes of late.

Discuss at least two strategies that multinational corporations (MNCs) can undertake in order to make profit by leveraging the growing consumer demand

One strategy that multinational corporations can undertake to make profit with growing consumer demand is to increase distribution points. This is particularly helpful for products with long cycle times and high adoption rates. A classic example of this form of strategy is Google and its android software. Growing consumer demand for smart phones has now become very profound. The growing middle class in Latin America and Asian has presented new and unique opportunities for growth. Smart phone in particular are now becoming high attractive products for consumers primarily due to their compelling value proposition. Individuals can check email; download apps, play games, view movies and much more on a smart phone. To take advantage of this demand, Google has made its products very ubiquitous throughout the world, and thus increasing its distribution. Android currently commands approximately 66% of the smartphone market. By making its software free to use for consumers while also making it fairly easy for developers to create applications on its platform, Google has steadily gained market share. Furthermore, the software itself is very scalable. Through these means Google can achieve economies of scale that ultimately lower the cost per unit for the company. This is very helpful as lowering the cost per software unit makes margins higher and increases profit over time for the company (McCarthy, 2011).