Introduction
There are two well-known computer malls in singapore. One is the Sim Lim Square and the other is Funan IT mall . However, Funan it mall was closed in may 2016 for redevelopment, leaving the Sim Lim square as the sole computer accessories mall in singapore. After studying the theory of the firm, i am interested in finding out how the firms make profits and how they compete. The firms in Sim Lim square are located near to each other and seems that they are selling identical products. Therefore this leads to a few question:
What type of profit they make
How do they compete
How do customers respond to the firm’s marketing strategy.
Do they have high barriers to entry or exit
Do the consumers have perfect knowledge of the price and …show more content…
For primary research, interviews and survey will be administered at SIM LIM square. For secondary research, i will useful books and journals in the library at the national library. Furthermore, i will online articles about computer shops at SIM LIM Square.
For primary research i will go to SIM LIM Square to do a price survey. However for price survey, there are too many shops at Level 3 to Level 4. As a result selected shops will be chosen. Two shops near the elevator, two shops near the escalator and two shops away from both of them in each level. Due to the great variety of computer accessories, six major components that are used to assemble a desktop computer will be selected which are Hard Disk, CPU Water Fan, SoundTrack, power supply and Casings. Approximentally, 12 shops will be …show more content…
A total of 100 customers are chosen with answering 12 questions in total.
In addition, there will be an interview with four shop owners.The objective of the interview is to find out the competitive strategy these shop owners adopted. Furthermore, to investigate the level of barriers to entry and exit for such shops and the level of profits they make at Sim Lim Square.
Wholesaler will be interviewed to find out the wholesale price of the selected items. This will help to analyze what type of profits are the computer shops at Sim Lim Square making.
Besides the primary research data, secondary research will be conducted to backup the analysis.
The Secondary research includes the books and journals in the library, articles online and advertisement conducted by the shops at Sim Lim square.
DATA Research and analysis
Firstly the secondary research will be the literature review of the theory of the firms from the book Economics for IB diploma (Ellie Tragakes). The market structure ranges from perfect competition, which is very competitive, to monopoly which is the least competitive.
The characteristics of the four market structures are outlined in the following section.
Perfect
There are two well-known computer malls in singapore. One is the Sim Lim Square and the other is Funan IT mall . However, Funan it mall was closed in may 2016 for redevelopment, leaving the Sim Lim square as the sole computer accessories mall in singapore. After studying the theory of the firm, i am interested in finding out how the firms make profits and how they compete. The firms in Sim Lim square are located near to each other and seems that they are selling identical products. Therefore this leads to a few question:
What type of profit they make
How do they compete
How do customers respond to the firm’s marketing strategy.
Do they have high barriers to entry or exit
Do the consumers have perfect knowledge of the price and …show more content…
For primary research, interviews and survey will be administered at SIM LIM square. For secondary research, i will useful books and journals in the library at the national library. Furthermore, i will online articles about computer shops at SIM LIM Square.
For primary research i will go to SIM LIM Square to do a price survey. However for price survey, there are too many shops at Level 3 to Level 4. As a result selected shops will be chosen. Two shops near the elevator, two shops near the escalator and two shops away from both of them in each level. Due to the great variety of computer accessories, six major components that are used to assemble a desktop computer will be selected which are Hard Disk, CPU Water Fan, SoundTrack, power supply and Casings. Approximentally, 12 shops will be …show more content…
A total of 100 customers are chosen with answering 12 questions in total.
In addition, there will be an interview with four shop owners.The objective of the interview is to find out the competitive strategy these shop owners adopted. Furthermore, to investigate the level of barriers to entry and exit for such shops and the level of profits they make at Sim Lim Square.
Wholesaler will be interviewed to find out the wholesale price of the selected items. This will help to analyze what type of profits are the computer shops at Sim Lim Square making.
Besides the primary research data, secondary research will be conducted to backup the analysis.
The Secondary research includes the books and journals in the library, articles online and advertisement conducted by the shops at Sim Lim square.
DATA Research and analysis
Firstly the secondary research will be the literature review of the theory of the firms from the book Economics for IB diploma (Ellie Tragakes). The market structure ranges from perfect competition, which is very competitive, to monopoly which is the least competitive.
The characteristics of the four market structures are outlined in the following section.
Perfect