Over, the years, the world has been trying to promote wireless connection in some of the areas but not all. This gap will soon be bridged with the help of a company by the name Energous Corp. based in California. Its share price has been seen to double up on estimated prospects of charging smartphones wirelessly. Their future projections estimates by the end of the year 2017, all homes will have access to wireless charging. Research projects a market growth to an appraised value to around $22 billion from $1.87 billion by the end of 2022. (Kharif, 2016).
A product like this is estimated attract consumers who apparently see inconvenience in use of cables. Such advanced technology also comes at an enormous cost. Thus different customers have different price values. Individual users may reach the required value while others may not. This provides a difference in consumer and product surplus.
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Another factor which may also contribute to the growth of such a product is its demand and supply. If the company has an estimated five-billion-dollar worth of goods but the consumers only need an estimated two billion worth of goods, this means that the company will encounter a loss of about three billion dollars. From this, we see that the demand of the product does not match the supply. When this happens, it means the business is experiencing a boom or depression, which is not required. For a business to grow, demand must exceed supply or be equal to it so as to match the expectations.
The product must also be able to adjust to the market changes. If for example, another company comes with the same but more advanced idea or by that time, be already launched and fully functional. This means that market will be entirely swept away from your company. Due to this, the product must have the full elasticity to match or at least be one step ahead if competition emerges.
Since this is not a developed idea yet, there is no such thing as a monopoly as no company has claimed patent rights to it. The market thus is not controlled by any organization. Due to this, the product might as well be fully exploited by each and every organization able to match the heights of its technology. But if a company had at this point built such a piece of technology and claimed fifty and above percentage of the market, then if another company had to step in, it takes many months not to mention years of development and market redemption.
From the technology that is being mentioned, it can be said that the company requires a lot of computer geeks who are well advanced to understand the product that is being manufactured at that moment (Laabas, 2004). For a company to acquire such people, it must have ready wages for the staff personnel to continue the good work. The salary and wages serve as an expense together with other expenses but should not exceed the profit gained to be a profitable company.
All these factors contribute to the development of a product from its production stage to its sales and marketing stage. When a product reaches its final form and is accepted by consumers, then that is a good business venture that will stun the market.
Reference
Kharif, O. (2016). Phone dead? These companies want to charge it from a distance.
Retrieved from www.ch icagotribune.com/bluesky/technology/ct-wireless-chargi ng-remote-blm-bsi-20160925-story.html
Laabas, L. (2004). The impact of Public Sources on Poverty, Income Distribution and Growth.
Retrieved from www.arab-api.org/images/publication/pdfs/264/264_wps0401.pdf
