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Managerial Economics:As a manager ,you produce a software and supply to Apple and Samsung, if Apple...

Managerial Economics:As a manager ,you produce a software and supply to Apple and Samsung, if Apple discontinue the use of that software and goes for a new wireless product, what will be the effect on the input and unsold softwares , how will it affect sampsung price?

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Currently the software is sold to Apple and Samsung. So, accordingly the product is developed in adequate numbers to cater to the needs of the client. However, if Apple discontinue procuring the software, it can put future planning in disarray and affect the stock. The next immediate task will be to find a potential buyer so that the stock doesn’t get affected.

However, Samsung can certainly be that buyer. It can increase its order and cover the stock, However, with the exit of Apple, Samsung will now have a greater bargaining power and can successfully lower its procurement cost.

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