In this report I will be outlining three articles that have experienced a
technical change, underwent a merger and have experienced changes due to
brexit. The articles will be of 2018 published from online newspapers.
Synaptics – Technical
The term technical change means the level of output produced
from the same amount of inputs. A technical change isn’t always meant as
technological change but as an organisation. A technical change is the act of
reducing input prices and maximising your output and the best market that has
been storming the current generations is smartphones. They are ever increasing
in price but all manufacture at lower inputs to increase their outputs. These
changes are only possible via research and development. The mobile industries
always have to captivate the consumer to buy the next flagship with
intervention, innovation and diffusion.
There are a number of changes to the Smartphone industry 2018,
most of which are subtle. With the exception of a touch ID sensor embedded in
the screen of a little known Chinese company Vivo along with Synaptics who have
successfully showcased a prototype at 2018 CES (Consumer Electronics Show) this
January. Synaptics are the one who have perfected the technology to be
implemented in a Smartphone. You would believe this type of innovation to be
achieved by Samsung, Google or Apple by now.
This advancement in the touch id technology will also
enable a great leap into a truly bezel-less display. Although Synaptics are not
the first bring out this technology infact, it was Toshiba back in 2007 who
revealed something similar but took just over 10 years for Synaptics and vivo
to demonstrate the capabilities and possibilities in this year’s CES 2018. Synaptics
are ready to step into the big leagues with the Synaptics Clear ID being twice
as fast as 3D facial recognition.
Synaptic are aware of the growing market for fingerprint
preferences in front of a phone but with the Smartphone industry quickly
shifting to the infinity displays they need to make their unit of production
low. We know that Samsung are the kings of display when it comes to the OLED
UHD+ screens. Synaptics have been trying to match Samsung for some years now.
At CES 2018 apart from the breakthrough of touch id the company have also been
developing their OLED display driver ICs displays as their touch ID only works
on an OLED display as it complements the OLED pixels to work.
The CES 2018 revealed Synaptics wanting to provide to the
OLED mobile companies incorporating Samsung’s famous OLED display. Synaptics
are trying to sell the most expensive component in a mobile phone which is the
touch ID and display advancements. There is a likely chance that the leaders in
smartphones Apple will seek out this technology to propel their competitors out
of the market share for sure. If Apple does turn to Synaptics for fingerprint
scanning solutions for the OLED iPhone, this would represent a very nice
revenue and profit boost for the latter at least through the next iPhone cycle.
The risk, of course, is that it would likely only be a matter of time before
Apple out innovates Synaptics in favour of a homebrew solution, meaning that
any financial boost for Synaptics would be short lived.
Shell – A Merging
A merger is an agreement or voluntary fusion that unites
two companies into one legal entity. There are number of reasons for a merger
or even a takeover is the attempt of a company reaching out to diversify into
another market or to gain market shares to create value and satisfy their
Shell will soon be selling electricity and gas direct to
householders in the UK for the first time after buying one of the county’s
biggest energy suppliers, First Utility. Shell bought first Utility outright
for an undisclosed sum which suspecting industry assumes a sum of between £20m-£300m.
This takeover will supply 825,000 homes if the deal concludes end of this
The move is the latest in a buying spree by Shell, which
has acquired two electric car infrastructure firms in recent months as it
diversifies beyond oil and gas. Experts said the entrance of Shell into UK
energy supply would cause a significant shake-up. Shell being a very reputable
brand will be an easy transition for the majority of UK households due to their
regular interactions with Shell as the every presence of oil supplier to the UK
Mark Gainsborough, its executive vice president of new
energies, said: “The supply and demand of residential energy is rapidly
changing, driven by new technologies that enable householders to better manage
their energy use, and the need for a low-carbon energy system.” The company
said the takeover by Shell would enable it to develop new products for customers,
including ones relating to electric car charging.
Darren Braham, First’s co-founder, said: “First Utility
has brought significant disruption and competition to the energy market and
this move will help us to capitalise on all the opportunities provided by
digitalisation, decarbonisation and the move to battery technology and electric
Shell is entering a market which is under intense
political scrutiny and faces the biggest change since privatisation with the
introduction of a price cap on default tariffs in early 2019.
Of the biggest energy suppliers, First Utility will be
less affected by the measure because it has the lowest proportion of customers on
tariffs that will be capped 23% compared to market leader British Gas on 67%.
EasyJet – A Business
Affected by Brexit
What is ‘Brexit?’
Brexit is an abbreviation for “British exit,”
referring to the UK’s decision in a June 23, 2016 referendum to leave the
European Union (EU). The vote’s result defied expectations and roiled global
markets, causing the British pound to fall to its lowest level against the
dollar in 30 years. Prime Minister David Cameron, who called the referendum and
campaigned for Britain to remain in the EU, resigned the following month. Home
Secretary Theresa May replaced him as leader of the Conservative party and as
Prime Minister. Following a snap election on June 8, 2017, she remains Prime
EasyJet and countless other airlines have been affected
by Brexit and the EU referendum. The biggest impact was the drop of sterling
the past year and profits have declined by over £100m of and pre-tax profits fell
by one sixth to £408m which points to the devaluation of pound after Brexit.
For both historical and most importantly technical
reasons, aviation markets are highly regulated. Airlines rights to offer
services between any two locations in two different countries are governed by
specific agreements between the governments concerned. EasyJet along with
British airways are both UK owned airlines meaning they have full freedom of
part of the European Common Aviation Area (ECAA).
When the UK leaves the EU, without special arrangements
the UK’s membership of the ECAA would lapse and these airlines would lose all
their automatic rights to operate to, from and within the ECAA. Furthermore,
their rights would also lapse on routes that are now governed by agreements
between the third-party country and the EU (such as the EU-US “Open Skies”
However, it is important to note that these rights are
reciprocal. USA and other ECAA carriers would lose their automatic rights to
fly to the UK.
The airline industry undergoes extensive regulations
related to their security, safety, environment and air traffic. Most of these
rules are implemented globally and determined by the international Civil
Aviation Organisation (ICAO). Where they
aren’t met, these standards need to be agreed by the two parties establishing
traffic rights. This is to make sure that the aircraft entering their airspace
is to the Aviation standard set by the ICAO; well maintained, safely operated
and not needlessly noisy. They will also uphold that these rules aren’t