Economic Theories Applied to the New Economy Essay -- Sony Economics B

Economic Theories Applied to the New prudenceDiscuss the extent to which the frugal theories in the commercialise placesReader can be utilise to the New Economy. (50 marks)A) Discuss the extent to which the economic theories in the Markets Reader can be applied to the New Economy. (50 marks)In this question, I will define the overage and juvenile Economy, thusly I willmention the main characters of New Economy and what is oppositebetween new and old Economy. After that, I will question the role ofknowledge, innovation, and individual creative and rivalrous as theprimary imaging needed to create economic wealth. Then, I willdiscuss basis reduce costs and improve product quality and howadvances technology hand the cost reduction and reserve theeconomic scale in heavy level. finally I will Study the Economictheories in market reader, clearifing how it could use and ably in thenew economy.It may be instrumental to describe the old economy before I talk roughlythe new economy. From around 1938 to 1974, the economy was built ona manufacturing animal geared toward standardized production (It wasmanual labor) (1). It was organized into stable, hierarchical and chiefly autocratic organizations. These organizations achieved acompetitive edge in the market by making standardized products fasterand more economically. They focused on incremental cost reductions anda national marketplace. This is how success and prosperity wereachieved in most(prenominal) courtiers, examples of type of organization could befound in textile and steel mills.This economic differentiate began breaking down between the mid-1970s and theearly 1990s. The crisis include both textiles and steel in a periodof transition from the old economic order to the new one. a lot ofcountries loss their competitive edge because other countries weremaking things faster and cheaper. The cheap labor which had broughtindustries to the southward was being very cheap. At the same time,workers a lso began lacking(p) a higher standard of living, wanting cars,televisions, washing machines, better clothes and homes, wanting achance to educate their children.Text Box source http//www.calumet.purdue.edu/ watchfulness/hrm_sum.htmlThenew economy is emerging as a knowledge- and idea-based economy. Inthis new economy, the key to success and prosperity is the extent towhich t... ...er design and high prices.The course of instruction also marked the companys restructuring of its sales anddistribution channels. In addition to the quick structures based onproduct categories, a new organization was score to be established, thatwould focus exclusively on mass-retailers, in an attempt to nurseclose knitted relationships and improve communications with itsconsumers.The strategies that Sony must continue to move are it must keepitself ahead of the change curve. In order to do so, the company mustbe able anticipate the care of the change. Second, it must beable to focus and make the c hange happen. Also, Sony as a companyneeds to redefine itself from a business perspective, demonstratingthat Sony is a consumer electronics products company, not a gamingcompany. For the market of consumer electronics is an ever-growingmarket and will ever so be significantly greater than the target marketfor games, which only includes a small segment consisting mainly ofchildren and teenagers. However, from a holistic point of view, Sonyshould fortify and maximize the brand value of its core sectors-electronics, games and content (music and picture).