1. The black economy is all economic activity in a given economy that occurs outside or in violation of the prevailing laws and regulations of society.Activity in the black economy is often illegal, usually untaxed, and rarely recorded by official economic statistics. What problems will arise if black economy occured in a country?
The Black Economy or Black market certainly has an impact on state finances:
The first, is that the government loses revenue. The purpose of transactions made on the black market is to avoid any kind of tax paid to the government. Because of this, the government can lose revenue due to the black market.
Second, the black market causes losses for legal industries. The number of types of goods that can be found at lower prices than official goods can certainly make the legal industry suffer losses due to the declining number of consumers. The most frequently encountered are smartphones. Smartphones on the black market are usually sold at a much cheaper price than in official stores.
Third, the black market makes it difficult for the country's economic development. Everything on the black market is illegal and all transactions are not recorded. In the absence of such records, the government will find it difficult to estimate the economic status of the country. As a result, it is also difficult for the government to plan and implement policies for the country's economic development.
2. There are some examples of companies which are categorized as first mover in Indonesia like, Aqua, Indomie, Telkomsel and Gojek. Up to now, those companies still exist while there are some new competitors emerge to compete and grab their market. If you have a company, and you are categorized as first mover in that industry,how to keep the advantage of first mover in your company so that your company can beat the new competitor?
To maintain excellence as a First Mover and be able to beat new competitors in the business and also become a reliable businessman, the main requirement is to be able and always to do good and precise market analysis. Many people say that market analysis is an important part of marketing management. By doing a good and appropriate market analysis, you will be able to better understand the actual market situation so that the strategy you take to become the first mover in marketing your business products will work well, so that your business profits will be obtained.
Market analysis is the activity of analyzing or organizing to study various problems regarding market conditions. This market analysis is an important thing that everyone should know and also becomes the basis and foundation for the next marketing strategy. Determining the target market for First Movers is very important because the company cannot serve all consumers or buyers in the market. There are too many buyers with varying or varied needs and wants, so the company must identify which part of the market to target. Thus, the success of the business will affect how well and appropriately market analysis is carried out.
First Movers Business Success and Advantage is any advantage a company earns by being the first to offer a product or service to the market. First Movers have the opportunity to get the greatest long term profit from the product introduction that is the result of their previous market analysis.
3. Indonesian Railways Company (PT. KAI) is the sole operator of public railways in Indonesia. It is completely state-owned and pays track access charges to the government. It can be said that PT. KAI monopolizes the railway industry in Indonesia since there is no competitor in that industry. Based on that condition, What kind of monopoly that is done by PT.KAI? is it pure monopoly or natural monopoly? Please explain the reason
Monopoly by PT. KAI is a Natural Monopoly. In the world of economics and business, natural monopoly is a type of monopoly that exists because of the high initial costs or the strong economies of scale in doing business in a particular industry. A firm with a natural monopoly is the sole provider of a product or service to an industry in a given geographic area.
PT. Indonesian Railways (PT. KAI). PT. KAI is a State-Owned Enterprise (BUMN) that provides land transportation services. PT. KAI does not face direct competition from other railway companies because until now there is no private rail ground transportation service provider, even though PT. KAI does not experience direct competition but PT. KAI will face indirect competition from other land transportation services, such as buses. The Yogyakarta-Surabaya route will not have direct competition from other trains. However, it will face indirect competition from buses traveling from Yogyakarat-Surabaya, as well as travel.
Natural monopolies arise in industries that require unique raw materials, technologies, or similar factors to operate. This monopoly can run all the time following market conditions, but unfair business practices can hinder competition.
4. President Joko Widodo alluded to improper practices in digital trade that have killed domestic Micro, Small and Medium Enterprises (UMKM). This practice is predatory pricing, selling goods at very cheap price in e-commerce by offering discounts to customers.What will happen to the market if this situation continues?
Predatory pricing practices have occurred in the digital and e-commerce realms. The price cut will indeed attract the attention of buyers, but when this is done by 'selling at a loss', aka price subsidies rather than cutting margins, the industry becomes unhealthy.
As a result, other players who want to participate in gaining market share inevitably have to do the same price discount. This will continue to be reciprocated going forward. The most benefiting from this practice, according to Untung, is a platform that has a large capital power.
Predatory pricing is usually carried out by companies whose business scale is large and efficient. Thus they can sell their goods so low as to kill their competitors, Companies that are not prepared for this practice will fall one by one. Inevitably there will be monopolistic practices later by big companies.
Predatory pricing and various forms of discount promos will make the market more price sensitive. Consumers will look for lower prices and less value more quality.
On the other hand, manufacturers such as Small and Medium Enterprises (MSMEs) with minimal margins will lack costs for product development. Finally, the products to be created are more oriented towards cheap than quality.