PRESTIGE INSTITUTE OF MANAGEMENT

AND RESEARCH, INDORE

Group ASSIGNMENT ON
MICRO ECONOMICS
Session: 2022-23
MBA I-Sem. SECTION-I
IMPACT OF DEMAND AND SUPPLY FORCES
ON SMART TV

SUBMITTED BY: SUBMITTED TO :

SIDAPARA TARUN DR. ABHISHEK PRATAP SINGH
SIYA PATIDAR
SURAJ MANDLE
SWATI TIWARI
TANISHQ WADHWANI
 DECLARATION BY THE STUDENTS

We hereby declare that the group assignment report on “IMPACT OF DEMAND

AND SUPPLY FORCES ON SMART TV” is a record of original work carried
out by us under the supervision of Dr. ABHISHEK PRATAP SINGH, towards partial
fulfilment of the requirements for MBA course of Prestige Institute of Management
and Research, Indore. We further declare that to the best of our knowledge this work
is not submitted anywhere else for the award of any degree or diploma.

Sidapara Tarun 1121614606

Siya Patidar 1121214996
Suraj Mandle 1121715054
Swati Tiwari 1121515074
Tanishq Wadhwani 1121814768
[MBA Semester-I, Section- ‘I’]
 CERTIFICATE BY THE FACULTY GUIDE

This is to certify that the group assignment report entitled “IMPACT OF

DEMAND AND SUPPLY FORCES ON SMART TV” is being submitted by
SIDAPARA TARUN, SIYA PATIDAR, SURAJ MANDLE, SWATI TIWARI
and TANISHQ WADHWANI under my supervision. During this project work, I
found the group members responsible, sincere and hard working. I recommend this
piece of work for its acceptance as group assignment of Trending Technology Course
of MBA Program of Prestige Institute of Management and Research, Indore.

DR. ABHISHEK PRATAP SINGH

PROFESSOR, PIMR, INDORE
 ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to our teacher, DR.
ABHISHEK PRATAP SINGH as well as our senior director sir who gave as the
golden opportunity to do this wonderful group assignment on the topic IMPACT OF
DEMAND AND SUPPLY FORCES ON SMART TV , which also helped us
in doing a lot of Research and we came to know about so many new things. We are
really thankful to them.

Secondly, we would also like to thank parents and friends who helped us a lot in
finalizing this project within the limited time frame.

Sidapara Tarun 1121614606

Siya Patidar 1121214996
Suraj Mandle 1121715054
Swati Tiwari 1121515074
Tanishq Wadhwani 1121814768
[MBA Semester-I, Section- ‘I’]
Introduction to product

A smart TV is a television that is equipped with internet connectivity and

the ability to run apps and access streaming services. This allows users to
access a wide range of online content, such as movies, TV shows, music,
and games, directly from their TV. Smart TVs can also be controlled using
voice commands, smartphone apps, or remote controls. Many modern
smart TVs also come with advanced features such as built-in digital
assistants, high-resolution displays, and HDR support for enhanced color
and contrast. Overall, a smart TV offers a more flexible and connected
viewing experience compared to traditional TVs.

Describe in detail the characteristics of the consumers in the market.

What does demand look like? What are different determinants of
Demand? Is it elastic or inelastic? Are there obvious substitute goods
available? Are there important complements? Is there decreasing
marginal utility of consumption? Doe the change in the Different
factors bring change in Demand and supply and to what extent?

The demand for smart TVs can be influenced by various factors,

including:

 Price: As the price decreases, more people are likely to purchase the
TV, leading to an increase in demand.
 Availability of content: If consumers can access a wide range of
content through their smart TV, they are more likely to purchase it.
  Technological advancements: Features such as 4K or 8K
resolution, HDR, and voice control are all examples of technological
advancements that can drive demand for smart TVs.

The demand for smart TVs can be both elastic and inelastic, depending on
various factors.
In general, demand for smart TVs tends to be relatively elastic in the short
term because smart TVs are a discretionary item for many consumers,
meaning that they are not strictly necessary for basic living and can be
postponed or substituted if the price is too high.

there is likely to be decreasing marginal utility of consumption in smart

TVs. This is because, as with most goods and services, each additional unit
of consumption (in this case, an additional smart TV) will likely provide
less and less additional satisfaction or utility to the consumer.
changes in various factors can impact the demand and supply of smart
TVs. Here are some examples:

 Consumer preferences: If consumers start preferring larger screen

sizes, for example, the demand for larger smart TVs will increase,
leading to a shift in the demand curve. This could result in an
increase in the price of larger smart TVs as suppliers respond to the
change in demand.

 Technological advancements: Technological advancements in smart

TV technology can also impact demand and supply. For example, if
new technology allows for better picture quality or connectivity
 features, demand for the new and improved smart TVs could
increase, leading to a shift in the demand curve. This could lead to
an increase in the price of the new smart TVs, as suppliers respond
to the change in demand.

 Availability of raw materials: Changes in the availability and cost of

raw materials used to manufacture smart TVs can also impact
supply. If the cost of raw materials increases, suppliers may be
forced to increase the price of smart TVs to maintain profitability.

Analyze the association of various components with Law of demand

and supply.
The law of demand and supply is a fundamental principle in economics
that describes the relationship between the price of a good or service and
the quantity of that good or service that consumers are willing and able to
purchase at a given point in time. Let's analyze the association of various
components with the law of demand and supply of smart TVs:

 Price: The price of smart TVs is one of the primary factors that
affect the demand and supply of these devices. According to the law
of demand, as the price of a good or service increases, the quantity
demanded decreases, all other things being equal. Conversely,
according to the law of supply, as the price of a good or service
increases, the quantity supplied increases, all other things being
equal. Therefore, an increase in the price of smart TVs is likely to
lead to a decrease in the quantity demanded, and an increase in the
quantity supplied.
  Technology: Advances in technology can also influence the demand
and supply of smart TVs. As technology improves, the cost of
producing smart TVs may decrease, which can lead to an increase in
the quantity supplied. Additionally, new features and capabilities
may make smart TVs more attractive to consumers, which can lead
to an increase in demand.

 Consumer preferences: Consumer preferences and tastes can also

affect the demand for smart TVs. For example, if consumers become
more interested in larger screen sizes, this can lead to an increase in
demand for larger smart TVs, all other things being equal.
Conversely, if consumers begin to prefer other forms of
entertainment or decide that smart TVs are not necessary, demand
may decrease.

Describe the distribution of firms and consumers in the market. Are

there only a few on one side or both sides? Is there a mix of very
different kinds of firms? Or consumers?
The market of smart TVs consists of a mix of firms and consumers. On the
side of firms, there are a few dominant players such as Samsung, LG,
Sony, and Vizio, but there are also a significant number of smaller firms
that produce and sell smart TVs. The market is highly competitive, with
each firm trying to differentiate their product offerings through various
features and pricing strategies.

On the side of consumers, there is a wide range of individuals and

households with varying needs and preferences. Some consumers
prioritize price over features, while others are willing to pay a premium for
the latest technology and advanced features. There are also consumers who
have brand loyalty to specific firms, while others are more open to
exploring different brands.

In summary, the distribution of firms and consumers in the smart TV

market is relatively mixed, with both dominant players and smaller
competitors on the firm side and a diverse range of consumer preferences
and behaviors on the consumer side.

Aggregate the consumer demand functions to construct a market

demand.
To construct a market demand function for smart TVs, we need to
aggregate the individual demand functions of all consumers in the market.
The market demand function shows the total quantity of a product that all
consumers in the market are willing and able to purchase at different
prices.

Assuming there are n consumers in the market, the market demand

function for smart TVs can be written as:

Qd = Qd1 + Qd2 + Qd3 + ... + Qdn

Where:

Qd: Quantity demanded in the market

Qdi: Quantity demanded by consumer i
i: Consumer index
The price of smart TVs will affect the quantity demanded by each
consumer, so we can express each individual demand function as:
Qdi = Di(P)

Where:

Di: Demand function of consumer i

P: Price of smart TVs
We can substitute this expression into the market demand function to get:

Qd = D1(P) + D2(P) + D3(P) + ... + Dn(P)

This equation shows that the total quantity demanded in the market is the
sum of the quantities demanded by each consumer at the given price.

If possible, solve for the equilibrium outcome.

To solve for the equilibrium outcome of demand and supply forces of
smart TVs, we need to consider the following:

 Demand for Smart TVs: This is the quantity of smart TVs that
consumers are willing and able to buy at various prices.
 Supply of Smart TVs: This is the quantity of smart TVs that
manufacturers are willing and able to produce and sell at various
prices.
 Equilibrium Price: This is the price at which the quantity demanded
equals the quantity supplied.
 Equilibrium Quantity: This is the quantity of smart TVs that will be
sold at the equilibrium price.

The equilibrium price and quantity of smart TVs will occur at the
intersection of the demand and supply curves. At this point, the quantity
demanded by consumers will be equal to the quantity supplied by
manufacturers.
Growth in Demand for SmartTV

The demand for smart TVs has been steadily growing over the past few years, driven
by several factors:

Increasing availability: Smart TVs are now widely available and can be purchased
from a variety of retailers. As the technology becomes more mainstream, more
consumers are opting for smart TVs over traditional televisions.

Connectivity: Smart TVs allow users to connect to the internet and access a wide
range of online content, such as streaming services, social media, and video games.
This connectivity is highly appealing to consumers who want to enjoy a more
immersive and interactive viewing experience.

Technological advancements: Smart TV technology has continued to improve, with

new features and capabilities being introduced regularly. For example, newer models
may include voice control, high-definition displays, and advanced image processing
algorithms.

Price: As the technology has matured, the cost of producing smart TVs has decreased,
making them more affordable for consumers. This has further increased demand as
more people are able to afford smart TVs.

COVID-19 pandemic: The COVID-19 pandemic has led to an increase in demand for
home entertainment products, including smart TVs. With more people spending time
at home, many have turned to streaming services and other online content for
entertainment, which has boosted the demand for smart TVs.
High Initial Cost of Smartwatch

The initial cost of smart TVs can be higher due to several reasons:

Advanced technology: Smart TVs typically come with advanced features such
as internet connectivity, built-in apps, voice recognition, and other smart
functionalities. These advanced features require more advanced hardware and
software components, which can add to the overall cost of the TV.

Development and production costs: Developing and producing smart TVs is a

complex process that requires a significant investment in research and
development. The cost of developing the software, user interface, and
hardware required for smart TVs can be substantial, and these costs are often
passed on to the consumer.

Brand value: The brand value of the manufacturer can also affect the initial
cost of smart TVs. Popular and well-established brands may charge a premium
for their products due to their reputation and market position.

The consumer's optimization problem when purchasing a smart TV

can be defined as follows:

Maximize utility (U) subject to the budget constraint:

U = f(Q, A, C, S)

where Q represents the quality of the picture and sound, A represents the availability of online
content and applications, C represents the cost of the TV, and S represents the size of the TV. The
consumer seeks to maximize the utility derived from these characteristics while staying within their
budget.

The budget constraint can be expressed as:

C <= I

where I represents the consumer's income or available budget.

Therefore, the consumer seeks to find the optimal combination of Q, A, C, and S that maximizes their
overall utility subject to their budget constraint. The consumer will choose a smart TV that provides
the highest possible utility within their budget, considering factors such as picture and sound quality,
availability of online content and applications, cost, and size. The consumer may also consider other
factors such as brand reputation and warranty when making their purchase decision.
 Report Attribute Details
Market size value in 2023 USD 211.42 billion

Revenue forecast in 2030 USD 451.26 billion

Growth rate CAGR of 11.4% from 2023 to 2030

Base year for estimation 2022

Historical data 2018 - 2021

Forecast period 2023 - 2030

Volume in million units, revenue in USD billion, and CAGR from 2023 to
Quantitative units
2030

Revenue forecast, volume forecast, company ranking, competitive

Report coverage
landscape, growth factors, and trends

Segments covered Resolution, screen size, screen shape, operating system, region

North America; Europe; Asia Pacific; Latin America; Middle East &
Regional scope
Africa

Country scope U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Haier Inc.; Intex Technologies; Koninklijke Philips N.V.; LG Electronics;

Panasonic Corp.; Samsung Electronics Co. Ltd.; Sansui Electric Co. Ltd;
Key companies profiled
Sony Corp.; TCL Electronics Holdings Ltd.; Toshiba Solutions; Hisense
International

Free report customization (equivalent to up to 8 analysts working days)

Customization scope with purchase. Addition or alteration to country, regional & segment
scope