Question 1
The decision for Airbus foregoing payoffs in relation to its relationship with A360 Superjumbo is quite complex considering that Airbus is a major competitor of A360 Superjumbo. However, Airbus lacked any strategy to enter any market in the new superjumbo division. Thus, the most vital and essential approach for Airbus was to be a dominant buyer (Hovenkamp, 2015). Dominant buying is a strategic plan used by Airbus to purchase the 300 requirements. Besides, the strategy propels Airbus to be dominant in the market. This also allows Airbus to take the investment pay off from Superjumbo. Mainly, Airbus will require more investment of orders to break even on A380. Thus, Airbus will have to win more orders before its troubled A380 superjumbo breaks even. Ideally, Airbus needs to increase the break-even point as well as to increase its competition payments. Besides, Airbus needs to increase the costs of delivery to propel its point of profitability.
Question 2
In case Boeing finds itself less profitable, this will affect the Airbus-Boeing tactical competition. The impact will be seen because Boeing finds itself less profitable than 60% of the market share than at 45% (Hovenkamp, 2015). Thus, it would require Boeing to be strategically positioned rather than placing itself at the lower market share. This impacts will ensure that the competition doesn’t realize. Consequently, Boeing can be more profitable by competing at a lower market than Airbus.
Question 3
There are costs that can be covered by the early penetration prices to verify the claim of European Nation on how Boeing can avoid predatory indictments. From an economic point of view, penetration pricing refers to a strategic plan that sets the cost of goods and services at low prices with an agenda of reaching a wider market (Hovenkamp, 2015). Thus, the pricing strategy assumes that the majority of customers can the ability to switch to their product due to the low-cost effect. The first category of cost argues that predatory pricing used by Boeing is not as profitable as a business strategy. Overall, the cost does not amount to dumping because predatory pricing may attract new firms that may pose health price competition in the industry.
Question 4
Despite the delay of the project to deliver at least 93 A360s Airbus is still doing significantly well in the industry. The delays may have destroyed the reputation of Boeing but that doesn’t mean that Airbus 380 is not successful. Mainly, A380 is considered as a big venture by some airlines despite their limited demand to justify aircraft operations (Hovenkamp, 2015). However, Airbus is pretty successful because its A380 are successful in the industry. Ideally, the operating cost for any flight is the same regardless of the capacity onboard. Thus, A380s are still successful because Airbus can minimize operating cost by ensuring each flight is packed to capacity. Having low cost per available seat mile is great, but Airbus ensures that each A380 flight is near full capacity which considers A380s still a success.
Part Two
Exercise 1
a. A payoff matrix for the decision-making problem
The two companies, Hitachi and Toshiba, are based in Japan. They deal with computer microprocessors through personal computers branding. Thus, the payoff matrix for the two companies is vested in low and extensive promotion as illustrated in the matrix below.
Toshiba
Extensive Promotion of Low Promotion
Hitachi Extensive Promotion $5 million, $5 million $4 million, $9 million
Low Promotion $9 million, $4 million $7.5 million, $7.5million
b. The dominant advertising strategy and the minimum payoff for Hitachi
Typically, the dominant advertising strategy that can bring minimum payoff for Hitachi must be independent of other player actions (McGrath, 2013). Conversely, Hitachi can choose the extensive promotion as a payout strategy because it is more even than low promotion strategy. This choice will be viable regardless of the selection made by Toshiba. Ideally, Hitachi can select a minimum payoff of $5 million even without knowing the choice of Toshiba.
c. The dominant advertising strategy and the minimum payoff for Toshiba
Typically, a dominant strategy refers to the action plan that the company utilizes to minimize the welfare of decision made in the decision-making process when the decision is independent (McGrath, 2013). The choice of Toshiba is also independent. Thus, the company should select an extensive strategy to ensure $5 million as the payoff.
d. Explain why the firms may choose not to play their dominant strategies whenever this game is repeated over multiple decision-making periods
If the case is repeated many times, then either Toshiba or Hitachi can address the other company having a dominant strategy that remains unrealistic. Mainly, the core objective of each form to gain maximum return that can amount to biases in the game.
Exercise 4
This case involves ZZ&S and AA&D as the two insurance companies that are attempting to offer services to clients through shares consideration. Thus, the companies are competing for more shares in the stock exchange market. Mainly, the additional shares demand the same expertise at the disposal of ZZ&S and AA&D. Considerably, it is quite clear that both ZZ&S and AA&D can bid the shares for $200 (McGrath, 2013). However, the new customers can only bid the shares at a lower price of $150 per hour. Thus, both ZZ&S and AA&D will be forced to low the bids below $200.
Besides, the cost of ZZ&S is less than that of AA&D thereby benefiting ZZ&S and disadvantaging firm AA&D. thus, firm ZZ&S will opt to bid the shares at the asking price set by insurance companies. The two firms will go below $100, but ZZ&S will benefit because it can bid below $66 per hour and still generate profit. On the other hand, AA&D cannot bid below that value because its standard price per hour does allow that value.
Lastly, firm AA&D has a greater movement than company ZZ&S. thus, AA&D can generate a significant value of profit by bidding or not bidding. Thus, in case AA&D does not bid, then ZZ&S will win the whole contract. In other words, ZZ&S may fail bid at $200 per hour to avoid failure of a new customer to accept the bid. Overall, ZZ&S will be forced to bid at $ 150 per hour to propel the customers to accept the bid.
Exercise 12
The decision is quite interesting to make on both ends of the companies. Mainly, the existing company can purchase the competition from a firm entering the industry using a strategy of depleting its value (McGrath, 2013). Besides, the company can attempt to acquire a new company to exist in the market. Using either strategy, both companies need to follow trends and maintain technological changes. Any company that fails to keep up at that point may lose a competitive advantage.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
