Answer To: HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HC1072 Economics and International Trade T2 2020...
Nishtha answered on Sep 10 2021
HC1072— ECONOMICS AND INTERNATIONAL TRADE
ECONOMIC ANALYSIS OF THE AUSTRALIAN MARKET
Table of Contents
Event Description 3
Microeconomic Analysis 3
Industry Description and Market Analysis 4
Externalities 5
Macroeconomic Analysis 5
Findings, Conclusion and Recommendations 6
Findings 6
Conclusion 6
Recommendations 6
References 8
Appendix: Copy of the Article 9
Event Description
The chosen event for this report is Fairbridge Festival, which cancelled in 2020 due to the corona virus breakout. The festival of folk, heritage, blues and classical music has been going 100 kilometres south of Perth at its bushland site for 27 years, and was supposed to go forward in April 2020. I chose this event as it is one of the famous events of the Australia. This Festival is now an important part of many people lives. It helps us avoid reality for a weekend and give us a fun place to party with friends and some of our favourite musicians. This event is favourite for many Australian families. FolkWorld is a non-profit organisation run on the enthusiasm of a small number of devoted employees and a large pool of more than 500 loyal volunteers. The event sponsored by many sponsors and brands.
This event is all kind of people, whether person is fond of music, food, adventure and for families. Major product and services offered in this event is array of regional food trucks, including international street food, wood fire pizza, organic food, smoothies and gelato. There is also a Children's Festival, with activities meant to entertain kids of all ages, including a popular workshop in The Kitchen called Kids. Kids get safe cooking hands-on while in the kitchen of nature and accommodation facilities also available. As growing numbers of festivals being rescheduled, postponed or cancelled, the consequences for organisers, performers, staff and collaborators continue to increase. If these continue, so sadly those from the other side will not appear (Warriner, 2020).
Microeconomic Analysis
The major determinant of the demand side is the attendees. An increased availability of music festivals alone will of course not justify the booming ticket prices and attendance figures at music festivals. Attendees, the vast proportion of whom are predictably Millennial and families in fair bridge festival is obviously enthralled enough by the event that they gladly hand over hundreds of dollars without too much reluctance. The explanation for this phenomenon is very simple; it has been known to make them happier by experience rather than by products. A study conducted found that over 3 in 4 Millennial would opt to spend more money on a positive experience over a positive purchase.
Moreover, many millennials claim they wished to raise their share of experiential expenditure in the following year relative to physical items. Fairbridge Music festivals are also an inherently group activity, with just 4.1 percent of event participants attending live music events on their own. It would seem that the possibility of creating and distributing unforgettable experiences with everyone, corny as it sounds, is the trigger, which continues to draw the crowds through the gates of music festivals.
The major determinant of the supply side is the organisers. As for creating a positive experience for people participants, it is crucial that management takes into account the value of things like helpful workers, good contact with people. The persons attending the case, clean and adequate ablution facilities and the fact that the different aspects of such facilities. They are readily accessible as food and beverages. This could be described as an appreciation of the 'wow' factor at an event worth remembering once the event is over. An elaboration of this concept may specify that a significant moment is an awareness created where, even the needs of the individuals attending an event are met and an output exceeding the expectations of the participants is provided.
The folks are allowed to talk about the case and it is worth noting. This understanding could either be generated by an unforeseen factor, an engagement with the creator or by an element of surprise added to the performance, or incident. All comes down to the money. Sponsorships run deep, tickets even sell as much as is sufficient to break through the cost of production. A festival needs a wide area, much like setting up and tearing down a mini-city in days. This requires strong funding, mass engagement and, above all, tolerance.
Although the sometimes creators may have enough patience to wait for results, artists' fees, cost of location, advertisement fees – are some of those items that dry out the patience of their sponsors. Fairbridge Festival really is like an old tree – most people see just the top part when lying down there are deep and solid roots that make the whole thing possible. The biggest on-going problem facing FolkWorld Inc. is that despite the accolades, festival ticket sales remain below expectations and sources of funding remain small. The Board of FolkWorld Inc. tracked these developments and adapted our strategic strategies to help ensure that the festival is economically, culturally and musically sustainable (Fairbridge Festival, 2020).
Elasticity is a measure of the responsiveness of a variable to a change in another variable; most generally, this sensitivity is the price shift due to changes in other...