Microeconomics Essay: Analyzing the Video Editing Market Dynamics

This essay provides a microeconomic analysis of the video editing market, focusing on the increasing demand for video editing services and the strategies employed by companies like DaVinci Resolve 15. The analysis covers various aspects such as market competition, virtual integration, economies of scale, and the impact of low-cost video makers on market dynamics. The essay also highlights the role of product differentiation and customer satisfaction in achieving long-run profits within the video editing industry. Desklib offers a wide range of similar solved assignments and past papers for students.

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Microeconomics
Essay
6/18/2018
Student Name

Video editing can be defined as the manipulation of the video. The arrangements of the shots
are done by the video editor. Use of video editing is nowadays skyrocketing in the market.
One of the companies DaVinci resolve 15 is giving the professional editing in their work by
charging very nominal amount for the same. In the market, this company found to have the
monopoly over the market. It is used to structure and present all the information including all
the films and television shows, video essays and advertisement (Bonneel, Sunkavalli,
Tompkin, Sun Paris & Pfister, 2014).
In this competitive market, there is a variety of editing coming up in the market which
includes the linear video editing, non-linear video editing, vision mixing, online and offline
video editing. These editings are taking the high speed in the market due to demand in the
market. The increasing demand for the video editor increased the supplier of video editor in
the market.
In the market, there are various video editing app is available but by using that application in
editing does not give satisfaction to the consumer which they are getting from the person
making the editing in the video. The fusion used by the company is differentiating from all
these apps editing as the experts are appointed for same. These differentiations in the editing
make the company earn long-run profits in the market (Dancyger, 2014).
The company is using the virtual integration in its business which replaced the need for
physical delivery, produce by the company. With the use of internet company can transfer its
video to the client. This will be done on the basis of the brand loyalty and reliability by the
company.
Another reason to have the demand for these video in the market is the high availability of
the video maker in the market at very low cost. Low cost implies that there will be high
demand as the law of demand states that there is an inverse relationship between the price and

quantity demanded. The income of the consumer also supports this making of video editing
as it is available in the low cost in the market and in a large variety. The company is
providing the editing of video at very low cost and cover the large market (Guo, Kim &
Rubin, 2014).
The market provides the platform to various suppliers to operate and earn the profits in the
long run. But DaVinci resolves able to grab the large market due to the use of the
econo0mies of scale in its business. They are taking the orders in bulk and it will be
economic for the company as well as to its consumers (Black Magic Design, 2018).
The increase in the supply of video in the market is because of the small investment. The
supplier can able to make huge profits in the long run. Due to the low cost, the video maker
uses the various ideas and creativity in making the video which makes them different from
others in the market. The entire market uses almost same applications and software for
editing the videos but it is the company differential product which satisfied the needs of the
customer and give them the highest utility (Black Magic Design, 2018).

References
Black Magic Design. (2018). DaVinci Resolve 15. Retrieved from:
https://www.blackmagicdesign.com/products/davinciresolve/
Bonneel, N., Sunkavalli, K., Tompkin, J., Sun, D., Paris, S., & Pfister, H. (2014). Interactive
intrinsic video editing. ACM Transactions on Graphics (TOG), 33(6), 197.
Dancyger, K. (2014). The technique of film and video editing: history, theory, and practice.
Florida: CRC Press.
Guo, P. J., Kim, J., & Rubin, R. (2014). How video production affects student engagement:
An empirical study of mooc videos. In Proceedings of the first ACM conference on
Learning@ scale conference (pp. 41-50). ACM.