Increasing Demand and Supply Problems of Bicycle Market Assessment Answer

How have you used the feldback you received from your tutor on TMA 04 (and/or other previous TMAs to help you prepare TMA 05? Give one concrete example of how feedback from TMA 04 (and - if you wish - from earlier TMAs) has Informed what you have written In TMA 05.

Based on the Information contained In the case study and using concepts from
B100 Block 5, Reading 40, analyse the factors that have the potentlal to affect the
supply of bicycles.The factors which have the potential to affect the supply of bicycle can be analyzed using the 7P of marketing mix.

Products/Services

The main concept here is how can the products or services be developed. From the case study it is evident that there is an increasing demand for electric bicycles (McCollum, 2019). It is therefore important that the manufacturers migrate to manufacturing of electric bicycles since they are mostly preferred and have a positive effect when it comes to sustainable environmental management.

Prices

Currently the prising model from the case study shows that there is high demand for bicycles especially electric ones. The best way is to allow forces of demand and supply to dictate the prices. It is already noted that some of the companies and manufacturers have already started increasing the prices.

Places

There is need to look at the new distribution options with customers experiences. It is already noted that online and ecommerce has contributed to high number of sales for the bicycles (Jenn, 2020). It is therefore important that the manufacturers concentrate on strengthening the online market.

Promotion

It is also necessary to look at the possibility of adding or substituting or even combining within paid and unpaid media channels. In this case companies which are involved in manufacturing can enhance their promotion by increasing their penetration through advertisement such as using the social media services. Physical Evidence

The physical evidence of the electric bicycles is a superb way of reassuring the clients of how impressive their bicycles are (Holmén & Sentoff, 2019). One of the advantages is that these bicycles are less harmful to the environment since they have no carbon emission.

Processes

Several internal processes and barriers are preventing proper delivery. For example ,they are a lot of delays due to lack of stock and enough spare parts. In addition there has been a lot of reliance on Asian market which has also slowed down the processes of manufacturing and delivery of the bicycles to the clients.

People

The most preferred group are the middle-aged people who tend to ride over a long distances while conducting their businesses such as deliveries.

Partners

Manufacturers in Europe need partnership we need to comes to assembly of the bicycle parts. Already they are suggestion of having a large bicycle plant in Portugal. The European market alone is also estimated to provide $850,000 jobs with the aim of reducing over reliance and importation from the Chinese market.

Discuss the Importance of understanding GDP growth, Inflation, and unemployment as indicators of a country's economic performance. Then evaluate the data provided below [Table 1 - Economic Indicators] on these key economic Indicators and discuss which of the two countries (United Kingdom and Sweden) shows better economic performance and why.
(Use approximately 400 words for this question)

There is a relationship between GDP and the level of inflation. For investors the annual growth in the GDP is usually very important. However if the GDP grows true match it also becomes dangerous because it is an indicator that there could be an increase in inflation which if a roads then the stock market is going to gain the making the money less valuable (Amato, 2019). In most of the countries are growth of 2.5 to 3.5% in GDP is considered a satisfying growth which may not cause any negative side effects. However an increase in this number is likely to have a negative effect in the market. Recent studies in the last two decades have shown that any country with an annual GDP growth of above 2.5% has usually caused a 0.5% in unemployment (Blanchard & Quah, 2019). This means that an increase in the GDP helps in lowering unemployment rates.

The average GDP growth for the United Kingdom is 2.01 while that of Sweden is 2.17. The rate of inflation for the United Kingdom is 2.01 while that of Sweden is 1.12. The rate of unemployment is higher in Sweden with a figure of 7.34 compared to that of the United Kingdom of 5.74. it must be understood that they hire the GDP the lower the rate of unemployment. However it can be seen that even though Sweden has an averagely higher growth in GDP the level of unemployment is very high. This causes a threat to economic development (Holston, Laubach, & Williams, 2019). It come there for be concluded that the United Kingdom is performing already well due today same performance in GDP and inflation with a relatively lower percentage of unemployment rate compared to Sweden. despite the fact that Sweden has been able to maintain its rate of inflation at relatively low values it is evident that during those times the rate of growth in GDP was very low and this also accounted for the higher rates of unemployment. For example the country witnessed and negative growth in GDP in 2012 and it is the same year that they country also observed one of the highest numbers of unemployment rates (Hodrick & Prescott, 2019). This means that a country is supposed to maintain an overall growth in GDP which also maintains inflation while reducing the rates of unemployment. It can be concluded that the UK is performing well economically compared to Sweden because it has managed to stabilized GDP and Inflation rates at 2.01 with a significantly lower unemployment rate than Sweden.

References

Amato, J. (2019). The Role of the Natural Rate of Interest in Monetary Policy. Bank of International Settlements. BIS Working Paper, 171.

Blanchard, O., & Quah, D. (2019). The Dynamics Effects of Aggregate Demand and Supply Disturbances. American Economic Review, 79, 655-673.

Hodrick, R., & Prescott, E. (2019). Postwar U.S. Business Cycles: An Empirical Investigation. Journal of Money, Credit, and Banking, 29, 1-16.

Holmén, B. A., & Sentoff, K. M. (2019). Hybrid-Electric Passenger Car Carbon Dioxide and Fuel Consumption Benefits Based on Real-World Driving. . Environ. Sci. Technol, 49, 10199–10208 .

Holston, K., Laubach, T., & Williams, J. C. (2019). Measuring the Natural Rate of Interest: International Trends and Determinants. Board of Governors of the Federal Reserve System.

Jenn, A. (2020). Emissions benefits of electric vehicles in Uber and Lyft ride-hailing services. Nat. Energy, 1–6 https://doi.org/10.1038/s41560-020-0632-7.

McCollum, D. (2019). Interaction of consumer preferences and climate policies in the global transition to low-carbon vehicles. . Nat. Energy, 3, 664.

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