Business human resource

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As the digital technology developing, a number of digital products have been put into market during these few years. Among all digital product market, digital cameras were rapid identified by consumers. According to numerous market investigation and report, it was indicated digital cameras had promising market prospect (MarkerResearch.com 00). This essay aims to discuss how the market for digital cameras is evolving from economic analysis point of view. Firstly, it expounds the technological characteristics of digital camera. Secondly, it briefs the changes of demand curve for digital camera. Thirdly, it indicates digital cameras will have possibility to substitute conventional cameras gradually. Finally, it explores the changes in elasticity complements.

To compare digital camera with conventional camera, it has distinct technological advances. Digital photography avoids the film and film developing; makes it possible to view recorded images immediately. Moreover, the pictures can be able to use PC-based manipulation and enhancement. Meanwhile, digital cameras cannot only allow pictures to be shared worldwide via the internet, but also can take advantages of computer or wireless technology to transmission, storage, display, and printing of images (Market Report, September 001). In addition, the functions of digital cameras are also much better and more than conventional cameras. For example, some digital cameras can record short video, or make pictures to be exchanged from colorful to black and white. These characteristics and functions of digital camera do not only bring more delight to people¡¯s life, but also improve work efficiency for special occupations, such as medium, photographer, etc. If we focus on the quantity of pictures taken, it is not difficult to see the pictures which are taken by digital cameras are a few times of conventional cameras, because internal storages of digital cameras are able to be changed.

Digital cameras have been put into market since 14, and the salerooms were persistent increasing. From economic angle to analyze the reason of an increase in demand, it could be two possibilities one is a rise in income; another one is a fall in the price of digital cameras. For the first point, it can be explained by diagram 1. As P diagram 1

can be seen from the diagram, the demand D¡¯

curve shifts from D to D¡¯. It means it has D

an increase in quantity at the same price. Q¡¯Q' Q According to the explanation from Principles of Economic, an increase in demand means that the whole demand curve has shifted to the right. Therefore, it proofs consumers increased the demand of products, due to they had a rise in income. For the second reason, diagram will show that the change of demand when price has movement. It is clear from the diagram that when P was high, Q decreased; when a decrease in P¡¯, Q' has a rise. On the basis of a basic economic hypothesis is that the lower the price of a product, the larger the quantity that will be demanded, other things being equal (Principles of Economics, 1), demand could increase when price of digital cameras was lower.

Due to digital cameras and conventional cameras have been being competition and the demand of digital cameras are much higher than conventional cameras, digital cameras have the most possibility to substitute conventional cameras. The factors of demand increasing of digital cameras and the reasons of why conventional cameras will be substituent have direct and absolute correlativity as while. They are also basis on a rise in income and the advanced technology that digital cameras utilized to replace traditional photography. Regarding market price, digital cameras still have obvious difference, but they are having progress to drive price down. A market report called Digital Camera markets, technologies & opportunities shows that CMOS (Complementary Metal-Oxide-Semiconductor transistor) sensors will replace conventional CCD (Charge-Coupled Device) arrays. The integration of CMOS sensors and advanced ASIC image processors will drive prices down rapidly. Expect digital still cameras with 1. mega pixels for just $140 to appear on the market soon., Moreover, another point which is worth to mention is digital cameras also can be called investment of once for all. Because its internal storage can reuse, that means it is not necessary to pay other charges; but if use conventional cameras, it needs to always pay for roll films and film processing. Thus, if consumers have a long term consideration, they will incline to choose digital cameras.

Obviously, digital camera and computer are complements, so their changes in demand should be connected closely. However, due to computers are multifunctional product and variety complements, digital camera cannot be the main factor to influence its demand, but it could be one of the factors. From opposite angle to see, computers are appointed complement for digital cameras. At the moment computers are in popularity, it brings more convenience and possibility to use digital cameras, so its changes in demand can influence digital cameras directly. Therefore, discussing elasticity complements of digital cameras needs to consider the characters of each other.

To sum up, the market for digital cameras are keeping evolving tendency. This essay has discussed the underlying factors from four parts which are technological advanced, the changes of demand, substitutability and elasticity complement. Among them, technological characteristics occupied specific gravity of increase in demand and substitute. To compete with conventional cameras, advantages of digital cameras are strong preponderance to gain a larger share of the market. So we have reason to believe digital cameras will be approved by consumers more and more.

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