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Forms of Industrial Organization

In: Business and Management

Submitted By cmears
Words 1351
Pages 6
Forms of Industrial Organization
Forces Influencing Business in the 21st Century
MMPBL/501
May 16, 2011

Introduction The goal of any company is to compete and be profitable because in the free market economy all the company needs is demand for their product. The market structures allowed companies to compete and market their products in four different markets pure competition, pure monopoly, monopolistic, and Oligopoly. Some companies like McDonalds have a strong brand and powerful easy to recognize nationally and internationally. McDonalds have found ways to be more efficient keeping their prices low which ensures their profit in the long run. The Electric companies compete, and more than one electric company helps to keep the cost of energy. Other companies compete with exclusive, geographical products like wine, organic foods, shoes, or furniture. The profit in this type of companies is short run, unless they find new ways to cut cost, and become more efficient (Hartman, 2011).
Oligopoly Competition

Because the number of sellers in an oligopolistic industry is small, the decision of one firm will influence the demand, price, and profit of rivals. The distinguishing uniqueness of an oligopolistic market of rivals is small in number (Southwestern, 2003, p. 259). McDonald’s has no boundaries concerning good food, prices, and fun with more than 32,000 locations in 100 countries around the world (2010-2011, McDonald’s).
McDonald introduced the one dollar value meal menu and other food chains also followed suite, by launching a value meal of their own so that they can stay competitive with McDonald’s who is at the top of the food chains (2010-2011, McDonald’s). For example, McDonald's dollar menu, value meal deals, and desert items have based their prices on their rivals Burger King and Wendy’s who also have value meals and dollar menu of

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