Case Star Hub Answers DOCX

Title	Case Star Hub Answers
Author	Mohamed Sobhy
Pages	2
File Size	13.6 KB
File Type	DOCX
Total Downloads	98
Total Views	451

Summary

Case Study: StarHub “Answers” Group: 49B 1st Semester: Spring 15 Class: Spring15022 Instructor: Dr. Ahmad Mabrouk Course Code: BUS 566 Presented by: Abdel-Aziz Mohamed Abdel-Moniem Fahmy >> Student # 1 Mohamed Abdel-Aziz Hassan Ibrahim >> Student # 20 A: The Fixed Cost has been increased...

Description

Case Study: StarHub "Answers" Group: 49B 1st Semester: Spring 15 Class: Spring15022 Instructor: Dr. Ahmad Mabrouk Course Code: BUS 566 Presented by: Abdel-Aziz Mohamed Abdel-Moniem Fahmy >> Student # 1 Mohamed Abdel-Aziz Hassan Ibrahim >> Student # 20 A: The Fixed Cost has been increased for paying $160M to obtain the English Premium League Broadcastng right. As the StarHub will be the sole provider of the EPL Broadcast; 2 Price increases will be in July by 600% for the Basic Package and in October by 250% for the Sports Package. As a result: The Marginal Cost Increased and that shifed the MC Curve Upward "because of the FC" and Rightward "because of the ATC". The Demand Curve will be the same for a short period "just tll the new subscribers joining StarHub" then it'll shif Rightward, StarHub is Creatng the Demand for their Services. A New Equilibrium Point has been identied and it's to the Right of the Old Equilibrium Point. The Price will be the same tll July and October Price Increase. B: The Marginal Cost will be the key for the New Prices. StarHub will set the Price at the MR=MC to Maximize the Proit....