Economic Theories Applied to the New Economy Essay -- Sony Economics B

Economic Theories Applied to the New EconomyDiscuss the extent to which the economic theories in the Markets indorser can be applied to the New Economy. (50 marks)A) Discuss the extent to which the economic theories in the Markets Reader can be applied to the New Economy. (50 marks)In this question, I will define the old and new Economy, then I will reboot the main characters of New Economy and what is differentbetween new and old Economy. After that, I will discuss the role ofknowledge, innovation, and individual creative and warlike as theprimary re address needed to create economic wealth. Then, I willdiscuss Innovation reduce costs and improve product lumber and howadvances technology achieve the cost reduction and reserve theeconomic scale in good level. finally I will Study the Economictheories in marketplace reader, clearifing how it could use and ably in thenew economy.It may be helpful to describe the old economy before I talk almostthe new economy. From around 1938 to 1974, the economy was built ona manufacturing base geared toward standardized production (It wasmanual labor) (1). It was organized into st fit, hierarchical andgenerally authoritarian organizations. These organizations achieved acompetitive edge in the market by making standardized products fasterand more economically. They focused on incremental cost reductions anda national marketplace. This is how success and prosperity wereachieved in most courtiers, examples of type of organization could befound in textile and steel mills.This economic order began jailbreak down between the mid-1970s and theearly 1990s. The crisis included both textiles and steel in a periodof transition from the old economic order to the new one. a lot ofcountries loss their competitive edge because other countries weremaking things faster and cheaper. The cheap labor which had broughtindustries to the South was being very cheap. At the same time,workers likewise began wanting a higher standard of livin g, wanting cars,televisions, washing machines, better clothes and homes, wanting achance to educate their children.Text Box source http//www.calumet.purdue.edu/management/hrm_sum.htmlThenew economy is emerging as a knowledge- and idea-based economy. Inthis new economy, the key to success and prosperity is the extent towhich t... ...er design and high prices.The category also marked the companys restructuring of its sales anddistribution channels. In addition to the existing structures based onproduct categories, a new organization was set to be established, thatwould focus exclusively on mass-retailers, in an attempt to fosterclose knitted relationships and improve communications with itsconsumers.The strategies that Sony moldiness continue to pursue are it must keepitself ahead of the change curve. In order to do so, the company mustbe able anticipate the direction of the change. Second, it must beable to focus and make the change happen. Also, Sony as a companyneeds to redefine itself from a business perspective, demonstratingthat Sony is a consumer electronics products company, not a gamingcompany. For the market of consumer electronics is an ever-growingmarket and will always be significantly greater than the target marketfor games, which only includes a small segment consisting mainly ofchildren and teenagers. However, from a holistic point of view, Sonyshould strengthen and maximize the brand value of its core sectors-electronics, games and content (music and picture).