Case Study on Demand Elasticity

Demand Elasticity Case Study:

Demand elasticity is the process of the company’s prediction and calculation of the alteration of the demand for the certain chosen production. It is quite obvious that demand elasticity is most important factor which influences the strategy of the company and its productiveness. The success of the production depends on the rates of demand and supply, so it is important for the company to dwell on the research of the situation on the market and learn what products are popular and required by consumers and what products are not important among them. The tram of the trained and experienced managers studies the demand for the company’s production on the market and evaluates the company’s chances to satisfy these needs. It is natural that if the demand is law, the company will have to act radically and change the type of production in order to avoid crisis and continue competing on the market.

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If the demand is high, it is possible to focus on the increase of the production in order to serve to the greater part of consumers. Demand elasticity is the company’s ability to react quickly and effectively to the changes on the market. If the company wants to remain successful and occupy the leading positions on the market, it has to react to the demand rapidly and produce such goods and services which can be paid well. It is not quite easy to maintain the company’s demand elasticity, because any change of the rates and type of production consumes additional resources and requires time, so if the company is able to transform its production quickly, it can be called a successful and perspective one.

Demand elasticity is the important factor which influences the company’s prosperity and dictates the type of the production which has to be manufactured by the company. The importance of the case study about demand elasticity is very high, because the student learns about the different situations which occur on the market and influence the rates of demand and supply. The young professional is supposed to analyze the cause and effect of the problem on demand elasticity, the influence of the rates of demand on the success of the company, etc. One has to observe the case profoundly and try to solve the problem in the right way.

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