Business Porposal

Business Proposal

Ebonie Franks

ECO/561

October 29, 2013

Christopher Dabbs

Business Proposal

People are doing away with physical books, magazines, and newspapers on a daily basis. Although there are so many people that love to read, there are just as many who do not have the time to sit down and take pleasure in a good book. Will Bury, an enterprising inventor, has come up with a new invention that he really believes in. His task is to offer those who like reading the chance to experience digital reading or to listen to books with a realistic synthetic voice.

A working location and employees to take on the execution of the product are very important the success of the product. Will Bury is presently using his garage as his workspace and he is doing the work by himself. Finding a new location to work and hiring employees to help him will give the company the opportunity to produce more digitized books as well as helping the company’s sales and revenue increase. How successful the company becomes depends on production and providing as many different books as possible.

Identification of Market Structure

The market structure of the business that Will Bury is interested in developing is monopolistic competition because there are other relatively comparable products. The market for books on CDs is already in existence and Bury already know this. However, he has developed a technology for text materials and has the technology patented. In addition, a file has been created that gives the option for digital reading or listening to the book in a realistic synthetic voice.

Assumptions regarding market structure and elasticity

The product that Will Bury has invented is new and is not as necessity. Therefore, the elasticity of the product depends on the amount of reading that a person does. At the same time, the elasticity would not be very high because there are no exact substitutes for the product in the market. The only substitutes are those that are...