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Economics for Business - Research Paper Example
With the vision of providing a revolution in mobile computing, Oqo was founded in 2000 by Jory Bell and Betts-LaCroix, together with Andrew Popell, Michael Prichard, Nick Merz and Robert Ford, "who set out to shrink a Windows XP personal computer into a pocketable device" (About Us 2007)…
With this in mind, the company has been in the forefront of creating subnotebook computer named ultra Personal Computer (UPC) which the Guiness World Records describes as "the smallest full-powered, full featured personal computer" (Oqo 2007).
Unlike most of the products in the global business arena, the UPC which is offered by Oqo has not been driven by the demand of customers in the market. In fact, the creation of the product is through the company's effort of determining the evolving computing needs of the high-end clientle (Oqo 2007). Thus, the UPC is a product where the supply is generated first before demand.
The demand curve for the UPC can be drawn as a downward sloping demand curve. Though the UPC is generally targeted to individuals who posses higher purchasing power through their level of disposable income, the product also appeals to the mid-level consumers who also wants mobile computing (About Us 2007). However, it should be noted that the high pricing strategy employed by Oqo is generally done to enhance the attractiveness of UPC. Thus, at a much lower price level, demand can be offset. It is also worth mentioning that UPC is a normal good because demand for it generally rises with increases in disposable income.
Currently, Oqo is dealing with the rapid increase in demand for its pr ...