Microeconomics Factors And Its Influence on Industries Performance

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Thesis

The articles I choose for analysis are Gareth Phillips, 'We can’t waste a Drop' and Jon Emont, 'The Robots Are Coming for Garment Workers.' The three articles have similar microeconomic concepts because of one-aspect gains, the other one decline. An excellent example as demand for healthy foods increases results in a residual influence in supply. In Phillip’s articles, as industrialization continues to characterize India, environmental impact and water supply continue to diminish. In both ridesharing and robots in the garment industry, the rise in technology adoption and penetration disrupts conventional methods and parties involved in the supply chain. An increase in demand for a substitute or alternative goods results in a decrease in the need for the subsequent product.

Major Competitors

Competition directly affects both demand and supply of a product. In the taxi industry, tech companies have resulted in a decrease in demand for conventional means of transport. Similarly, the adoption of robots in the garment industry leads to a reduction in the demand for human workers. In India's case, industrialization has resulted in competition with natural resources. As industrialization rises at a rapid rate, natural resources, including water, continue to diminish.

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Barriers to Entry

Barriers to entry include constraints that make it difficult for new players to join the industry. The barriers to entry include government regulations or high capital requirements for startups. The ridesharing industry barriers to entry remain limited because it relies on technology. However, the new rules that involve permits and environmental concerns can make it challenging for new entrants. In the healthy food segment, restaurants must meet regulatory bodies' organization laws. Unlike fast foods, restaurants that are cheap to set up, healthy food hotels are costly because they incur colossal sourcing and preservation costs. In India, the demand for industrialization remains characterized by little barriers to entry. The low barriers to entry have increased manufacturing but have had adverse effects on the environment.

Factors of Production

Factors of production include resources that an organization uses to produce goods, which include labor, materials, capital, entrepreneurship, and land. The ridesharing industry requires little capital for a startup because it relies on technology. However, regulations in form permits and competition by dominant industry players’ results make it challenging to enter and penetrate the industry. On the other hand, capital and supplies requirements required for the supply industry remain very high, discouraging entry. Moreover, the rise of fast-food chains makes it difficult to set up hotels offering healthy menus. In India, factors for production, such as capital, labor, and entrepreneurship, are making it easy for industries to thrive in the country.

Technological Trends

Technological trends involve a shift from menial methods of performing tasks and delivery of services. The ridesharing industry relies heavily on technology through its mobile and internet applications. Moreover, the rise in demand for technology has increased the demand for electric cars and bikes in the industry. Robots in the garment industry have disrupted the labor force and have the potential of reducing production costs.

Conclusion

An increase in demand for a substitute or alternative goods results in a decrease in the need for the subsequent product. Microeconomics factors such as competition, barriers to entry, factors of production, and technological trends have a substantial influence on the performance of all industries. The best performing industry players must leverage their market and business strategies around microeconomics factors to ensure success.

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Microeconomics Factors And Its Influence on Industries Performance. (2020, September 28). WritingBros. Retrieved June 25, 2024, from https://writingbros.com/essay-examples/microeconomics-factors-and-its-influence-on-industries-performance/
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Microeconomics Factors And Its Influence on Industries Performance. [online]. Available at: <https://writingbros.com/essay-examples/microeconomics-factors-and-its-influence-on-industries-performance/> [Accessed 25 Jun. 2024].
Microeconomics Factors And Its Influence on Industries Performance [Internet]. WritingBros. 2020 Sept 28 [cited 2024 Jun 25]. Available from: https://writingbros.com/essay-examples/microeconomics-factors-and-its-influence-on-industries-performance/
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