Economics Essay Example | Topics and Well Written Essays - 500 words - 39

Economics - Essay Example As individuals continue to think that Netflix stands for a great compelling entertainment, the speed with which streaming movies adopt in general, and in particular, looks to be importantly slower compared to previous anticipation. To survive, Netflix should spend more on initial programming with an effort to draw closer more customers. The original investment will be of a positive effect in the long run. According to an article in the Wall Street Journal: In early January last year, after a disappointing Charismas season and amid worries about competition from discount retailers, Zale Corp. decided to shake things up: The self-proclaimed jeweller to Middle America was going to chase upscale customers†¦.The move was a disaster. The Irving, Texas, retailer lost many of its traditional customers without winning the new ones it coveted. (From Ann Zimmerman and Kris Hudson, â€Å"Chasing Upscale Customers Tarnishes Mass-Market Jeweller,† Wall Street Journal, June 26, 2006. P. A1. Why would a firm like Zale abandon one market niche for another market niche? We know that in this case the move was not successful. Can you think of other cases where the company successful changed its business strategy? Firms like Zale may move from one market niche to another market niche due to monopolistic competition. This is where by many firms compete in a market, there are no barriers to entries and products available in the market are differentiated. The weak economy and fierce competition led Zale to move to another market niche (Mihaljevic, 2013) The dry cleaning is indirectly practicing price discrimination as there exist a difference in cost involved in accomplishing the work. Besides, there is a big difference in price we are not aware of incase it is the real costs’ differences. As an economist I am not for support of law such as this as hair grooming, dry cleaning and laundry are jobs that can be