Interactive Case Study: How News Lifts - or Sinks - World Stock

Introduction1

Discussion1

Quick Glance at 2008 Crash2

Selected Tech Stock Companies3

Overview of Apple4

Overview of Sony4

Way to Make a Profit after the Crash5

Strong Emphasis on Marketing Campaigns5

Appropriate Pricing Mechanism for Snow Leopard and iPhone5

Upgraded Macbook and Software App6

Launch of New Retail Stores6

Aggressive Market Movements8

Workforce Downsizing8

Reduction in the Manufacturing Plants8

Divesting Electronics Division9

Unethical Practices at Tech Stock Companies9

Keeping Mac Prices Higher9

Maneuvering Steve Job's Health Status10

Changes in the Consumer Demand Trend10

Strategies for Multinational Corporations (MNCs)11

Conclusion12

References14

Appendix17

Interactive Case Study: How News Lifts - or Sinks - World Stock

Introduction

The paper aims to assess market events of 2007-2008 that lifted or sank the hi-tech stock companies. The paper provides quick facts about the market crash of 2007-2008 in order to set the base for analysis and critical evaluation of the scenario. The paper selects two tech stock companies, who took advantage of the situation in order to make business profits. The paper conducts comprehensive analysis of the increasing consumer demands and unethical means, if any deployed by these companies to earn profit.

With the help of market research studies, the paper sheds light on the changes observed in the consumer demand patterns. In the light of comprehensive analysis of the situation, the paper provides strategies, which may assist an MNC to make a profit via growing consumer demands. Finally, the paper draws a conclusion on the overall understanding of the subject matter.

Discussion

With the advent of the dot com era, global markets have become more efficient with easy and fluent access to rigorous information. At times, these efficiencies may keep the investor and market players informed about the market forces, trends, and future expectations of each other. However, it may allow few players to earn an undue advantage of the unseen or less observed situations. History of the human world and mechanics has witnessed several events such as the Great Depression, Economic boom, the Subprime crisis that brought major restructuring and transitions in the corporate practices and economic progress of the world economies. The market crash of 2007-2008 was similar to the Great Depression that reported a stagnant period in the stock markets (Mann & Luo, 2010).

Quick Glance at 2008 Crash

In the year 2008, failure of major US banks resulted in the financial crisis on a global scale, which had severe effects on the Europe and other regions. This failure of banking institutions resulted in gruesome effects on the stock market, specifically tech stock companies. According to statistics, 21% decline was observed in the value of US stock markets (Shares Explained, 2012). These losses continued to reflect poor impact on the market indices and the Dow Jones, which reported 18% loss in the value (figure 1).

Figure 1: Reflection of The Crash on DJIA (Money-Zine, 2012, p. n.d.)

From August 2008 to February 2009, stock markets remained down (figure 2). According to market analysts and research studies, crisis of subprime mortgage were the major cause of the big stock market crash. The US banks were exposed to highly risky investments with relatively weak credit ...