One Card Solution: Economic Analysis of a New Product

Introduction

The introduction of a new product in the market is one of the most challenging parts in business since it only emerges successful when the organization applies the right strategies. For instance, a detailed economic analysis is essential in achieving the possible performance and success of a new product in the industry. The paper focuses on the report of a one card solution which has the features of all the standard cards that people have for business transactions.

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First, it is essential to note that Americans make use of different types of cards for transaction purposes, and the best examples are debit cards, visa cards, master cards, and many more. Therefore, that implies that they have to carry all these cards separately so that they face efficient transaction when they need any of the cards (Chow, 2014). Although they still manage to achieve their intended purposes, the new idea is the introduction of one card which will bear all the card's features, and it is upon the user to select their preferred service. The main intention of introducing the one card is to ensure that the users can manage to find all their services by only carrying one card. Nonetheless, it is only possible to achieve success in the industry through a detailed analysis which will ensure the creation of the right prices.

Second, one of the notable elements is that there are about 183 million Americans who are using the different types of credit cards for various transactions. Although all these users are distributed across the different types of cards, the introduction of one card implies that it is possible to win all the 183 million users (Mills, 2014). Notably, some persons only use the master card, but they do not apply the use of the visa card. However, the situation will be different from the one card since it will catch the attention of both parties, hence creating an increased opportunity of achieving success in the industry with the one card. The current possible market for one card in the United States is about 183 million users.

Third, the standard rates of the other cards are about $300 annually, and that is the source of determining the prices for the one card which has better features. The new card has at least five different card's features compared to the normal ones which only serve one purpose, and that means that their process will be five times higher. Therefore, the average rate for one card is approximately $1500, thus confirming high profits when compared to the other cards. The selling price of one card must remain high when compared to the production prices to achieve benefits. For instance, there are chances that a single one card will go for about $500. The calculations concerning the number of possible customers and the average cost of the card prove that the product might realize a significant success within its early days in the market.

Conclusion

In brief, an economic analysis aims at highlighting the possible strategies that will result in the success of a new product in the market. The introduction of one card that bears the features of all the main credit cards will realize profits in the industry since there is a vast population that is already using the other services. Notably, there are about 183 million Americans who are already using the other visa cards, thus confirming a ready market that will purchase the one card for $1500.

References

Chow, G. C. (2014). Economic Analysis of Environmental Problems. Chicago: World Scientific Publishing Company.

Mills, G. (2014). Optimisation in Economic Analysis. New York: Routledge.