Contemporary Marketing Issues and Game Theory Paper Example

3.1 Introduction

Understanding the basic marketing theories enables a business to make more strategic and effective business decisions. This essay will focus on three primary theories; the game theory, planned behavior theory, and the network theory. The companies which apply them are Apple Inc., Dell Computer Company, and Australian Opal Company respectively. Although they are essentially different, the three marketing theories serve the same underlying purpose; to meet customers' needs effectively and sustain competitive advantage.

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Below is a diagram showing the detailed link of each of the three companies and explaining how organizations predict customer behavior to provide satisfactory services.

3.2 Game Theory

Quality Experience among Consumers in Apple Inc.According to the game theory, any successful firm can derive business insights from viewing the business opportunity in the perspective of its stakeholders, other than itself. Many organizations choose to put themselves in the shoes of their competitors and rivals so they can stay ahead. However, Apple Inc. adopted a more customer focused approach by collaborating with other entities in the industry to enhance the customer's experience. The most significant example of a strategic alliance existed between MasterCard and Apple Pay firms. From an ordinary viewpoint, it would be proper for one to understand and think that the two firms are competing for the available resources and market opportunities in the IT sector. Apple had to collaborate with the second largest provider of credit cards across the globe (Demir et al., 2018 pg. 12). This venture was carried out to help make Apple gain credibility in the merchant servicing and processing sectors.

The collaboration comes with great mutual benefits in that Apple firm would enjoy the interests of the reputation developed by MasterCard. On the same note, MasterCard would be in a position to get the cache of becoming the first option to be used by the Apple firm in its expansion program into the credit card business industry. Apple firm would then become more prevalent based on the procedures used in preventing the bugs and other issues across their network. However, there is the possibility of bringing firms that do not operate under the same product line. For example, the collaboration between a real estate agent and a mortgage lender could be seen as a compelling partnership (Yusoff & Husnina, 2018 pg. 76). The link, in this case, may not be termed exclusive and then after testing, then the real estate may decide to bring in the brokerage services of the mortgage firm to help make good use of the available resources in the market.

Regarding ownership, a socialist economy is owned and controlled by the government where the principal production means are organized and rendered by the government. The capitalist economy has all the businesses and the properties controlled and owned by individuals. In some specific socialist economies, the cooperatives are given the responsibility of holding primacy over the process of production (Cao 2018 pg. 65). However, some other socialist economies allow the private ownership of businesses and properties though under stringent taxation policies. The capitalist economy is unconcerned with the equity ratios based on the equality factors in the resource allocations.

3.2.1 Experience with Product

The iPhone products used by the firm had to deal with the primary strategies used in the entire environment. The aspect of strategic alliance is crucial in businesses that would want to make good use of the secondary opportunities in the market. The same strategy can be used in the examination and the testing of the extent of a collaborative partnership with another firm. The best mechanism and approach, in this case, requires the location of a firm that shares the shared mission and vision or one that can purchase into the core values of the firm. Some large corporations have developed strategic alliances to help boost their business ventures.

3.2.2 Confidence and Truth among Customer

The firm has developed sound confidence among the clients by engaging in some serious issues linked to the differences between the divide in the community. The differences between socialism and capitalism are primarily based on the manner and scope of government interventions in the economy. Within the capitalist economy, there is room for the establishment of free market conditions used in the driving of the innovations to create wealth. The economy set up by the capitalism principles brings in the spirit of free choice that could either come with positive or negative implications to the immediate community. The socialist economy brings in the aspects of a centralized system of planning. Such planning mechanisms are utilized to help bring in the conformity that would be significant in the encouragement of equal opportunities and the overall economic results.

3.2.3 Results Projection

The outcomes prevalent with Apple Inc. includes the machines, tools, and the building needed by the employees to make better their operations in the firm. The human population must create wealth and designed to be used by the same humans. Therefore, capital is the foundation used by other factors of production in the line of manufacture. Finally, the entrepreneurship factor deals with the primary driving force behind the process of creating the commodities in the business. The entrepreneur takes the responsibility of combining all the other three factors to help produce quality services to the consumers.

3.2.4 Analysis of Results

From the results obtained from the operation of the firm, it is quite important to note that the most significant example of the New Deal existed between MasterCard and Apple Pay firms. From an ordinary viewpoint, it would be proper for one to understand and think that the two firms are competing for the available resources and market opportunities in the IT sector. Apple had to collaborate with the second largest provider of credit cards across the globe. This venture was carried out to help make Apple gain credibility in the merchant servicing and processing sectors. The collaboration comes with great mutual benefits in that Apple firm would enjoy the interests of the reputation developed by MasterCard. On the same note, MasterCard would be in a position to get the cache of becoming the first option to be used by the Apple firm in its expansion program into the credit card business industry.

Apple firm would then become more prevalent based on the procedures used in preventing the bugs and other issues across their network. However, there is the possibility of bringing firms that do not operate under the same product line. For example, the collaboration between a real estate agent and a mortgage lender could be seen as a compelling partnership. The link, in this case, may not be termed exclusive and then after testing, then the real estate may decide to bring in the brokerage services of the mortgage firm to help make good use of the available resources in the market. This gesture implies that the firm is totally made out of characters in the steady quest for the ways that they could avoid the parts of truth in the general public. This motion is frequently extremely huge in a predicament to keep away from the genuine circumstances in their ways of life and issues a definitive utilization of the soma sedate is the most widely recognized case of this sort of hallucination of the general population living over the world.

3.3 Experiences of consumers in IKEA

The differences between socialism and capitalism are primarily based on the manner and scope of government interventions in the economy especially dealing with the issues linked to the IKEA situation. Within the capitalist economy, there is room for the establishment of free market conditions used in the driving of the innovations to create wealth. The economy set up by the capitalism principles brings in the spirit of free choice that could either come with positive or negative implications to the immediate community (Reitz 2018 pg. 7). The socialist economy brings in the aspects of a centralized system of planning. Such planning mechanisms are utilized to help bring in the conformity that would be significant in the encouragement of equal opportunities and the overall economic results.

3.3.1 Wants and Needs of the Customers

Based on the difference between the wants and the needs in IKEA, it is a mere fact that the IKEA firm had no standard reasons to get engaged in the business sector in the Russian market especially through the non- financial section of the monetary sector of the firm. This notion is based on the fact that the country did not make an adequate risk assessment, especially in the politics in the country to allow for a better understanding of the market in place. Although the markets in Russia possess vast potential in the realization of the chances in dealing with the challenging instances for the MNCs, the non-financial institutions that are geared toward the attraction of the foreign companies to help in the institutionalization of the process. Such changes include the political, economic, and cultural environments and are organized in a manner that would definitely help in the bringing of the right changes required to help illustrate that the costs involved in the navigating of these markets exceed the estimates used by IKEA in expanding its services to the Russian market. Based on these reasons, the firms from the developed countries such as IKEA are often in the upper hand in the struggle with the attainment of the desired returns when they enter such emerging markets like the one in Russia.

Russia is the most challenging countries for a firm to do business. This reason is based on the issues of corruption, lack of faith, irrelevant government policies, security concerns, and the aspects of taping. All these factors then come up with a very unfavorable political environment to deal with in the country. IKEA had to face all these problems in one way or the other in a bid to try and come up with an amicable market policy in the country. In the initial stages, the whole process seemed viable as the firm thought the risks were manageable. However, with time the firm realized that the environment was just too much for them to operate within depending on the issues therein. This host...