...Differentiating between market structures. Tiara Bingham ECO/365 11/26/2014 Al Gourrier Differentiating between market structures. There are certain factors that apply to all organizations. These factors are type of market structure, competitive strategies, customer base, and strengths and weaknesses. The success of a company depends upon these factors and if they format their business strategy to work within the different types of markets, if they can build upon their strengths and minimize their weaknesses, and provide the consumers with what they want. Market structures change depending on the condition of the market and the competition, in order for an organization to be successful, it has to be able to transform it business strategy to conform to market demands. Business strategies are decided after analyzing the market the company will compete in, competitors within that market and the consumer base. The organization that I chose to discuss is NV Energy. I will discuss the type of market that NV Energy operates in, why this market was chosen, How this company might work with other competitors in this market, and competitive strategies that could be used. NV Energy Nv Energy is the local power company established in Las Vegas Nevada. The type of market structure that Nv Energy operates in is called a Monopoly,in the case of NV Energy it is a public utility which is overseen by the government and allowed to operate as a monopoly. In a monopoly market structure a single company...
Words: 1445 - Pages: 6
...What is Market structure and its sorts with case in Australia? Business sector is a spot where purchasers and dealers set the expense of administrations and merchandise. The idea of business sector structure is in this manner alludes to the opposition for products and administrations in the business sector furthermore qualities of the business sector that impact the conduct and aftereffects of the organizations working in that business sector (www.businessdictionary.com). The standard angles that center business sector structures are: amount of purchasers and suppliers in the business sectors, their relative course of action quality, with respect to capacity to set costs, the level of detachment and uniqueness of items, the states of entering and leaving the business sector and economies of scale. The connection and contrasts between these perspectives take into account the presence of a few business sector structures one is immaculate rivalry and flawed rivalry. Impeccable rivalry business sector is characterize as a business sector in which number of purchasers and suppliers are little and free and trade indistinguishable items with no sort of boundations. Flawed rivalry: in this all conditions are not quite the same as immaculate rivalry. It incorporates market structures, for example, • Monopoly • Duopoly • Oligopoly • Monopolistic rivalry (www.youarticlelibrary.com) Monopoly It is a business sector structure when there is one and only vender of...
Words: 1117 - Pages: 5
...Market Structures Kudler Fine Foods is a local food store that specializes in epicurean food in the San Diego metropolitan area. They specialize in bakery and pastry items, fresh meats, seafood, produce, packaged foods, specialty dairy products, wine and spirits, and much more. In their mission, Kudler Fine Foods vouch that they shop all around the world for their products and they choose only the finest. In addition to their gourmet food, the founder Kathy Kudler who was once a Vice-President of Marketing of a different, liked to cook gourmet meals. She got the idea that the San Diego metropolitan area needed a gourmet food store. She put together a business plan and opened the first Kudler Fine Foods in La Jolla, CA in 1998. Additionally, that store was profitable and she opened her second store by 2000 in Del Mar, then a third one by 2003 in Encinitas. In the following paragraphs, I will apply microeconomic concepts toward the competitive strategies of Kudler Fine Foods that affect its long term profitability. Additionally, I will evaluate Kudler’s competitiveness in the marketplace, including its customers’ views. In this same process, I will identify the market structure that I believe best applies to Kudler Fine Foods, and assess how the market structure positively and negatively affects Kudler’s long-term profitability. How Kudler competes in the marketplace Kudler Finer Foods is one of the only few competitors who offers gourmet foods in Orange County. They compete...
Words: 932 - Pages: 4
...the following assignments: Option 1: Differentiating Between Market Structures in Kudler Option 2: Differentiating Between Market Structures in an Organization of Your Choice Option 1: Differentiating Between Market Structures in Kudler You will apply important microeconomics concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization that affect its long-term profitability. You will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. In the process, you will identify the market structure that you believe best applies to this organization, and assess how the market structure positively and negatively affects the firm’s long-term profitability. Complete the University of Phoenix Material: Differentiating Between Market Structures Table located on the student website. Compare the various characteristics of the market structures by completing the table. Kathy Kudler has hired you as a consultant to perform a market analysis, review her competitive strategies, and make recommendations on how she can maximize profits. Read the materials in the Kudler Fine Foods Virtual Organization, including the firm’s strategic plan and marketing overview. Write a 1,050 – 1,400-word market analysis in which you address the following: • Based on the...
Words: 354 - Pages: 2
...Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure has great influence on the behavior of individuals firms in the market. The market structure will affect how firm price their product in the industry .For example in a competitive market the firms are price takers while the industry has the sole duty of price setting. The market structure will affect the supply of different commodity in the market. When the competition is high there is a high supply of commodity as different companies tries to dominate the markets. A market structure will affect the barrier to entry for the companies that intend to join that market. A monopoly markets structure has the biggest level of barriers to entry while the perfectly competitive market has zero percent level of barriers to entry. The other factors that influence the firm behavior under a market structure are the efficiency. Firm will be more efficient in a competitive market while firms will be least efficient in a monopoly structure. The level of competition in firms...
Words: 265 - Pages: 2
...Market Structures and Maximizing Profits /XECO/212 Principals of Economic In this paper I will discuss competitive markets, monopolies, and oligopolies and what role each of these plays in an economy? I will also point out: o What the characteristics of each market structure is? o How the price is determined in each market structure in terms of maximizing profits? o How output is determined in each market structure in terms of maximizing profits? o What are the barriers to entry, if any? o What role does each market structure play in the economy? First I would like to discuss what a competitive market is. This market has a large number of buyers and sellers, such that no single buyer or seller is able to influence the price or control any other aspect of the market. That is, none of the participants have significant market control. A competitive market achieves efficiency in the allocation of scarce resources if no other market failures are present (AmosWeb). Usually the competitive market does very well because demand price and supply are price equal. The demand and supply prices cannot generate any greater satisfaction by producing more of one good and less of another (AmosWeb). People want good products and they want what they pay for. I would be willing to spend hundreds on hair supplies as long as the products are good. If a product does not really provide the satisfaction you are looking for then you want to pay little or nothing for it right...
Words: 1053 - Pages: 5
...Perfect Competition Perfect competition industry/market has very large number of small firms because there are no barriers to entry and exit. As all the firms produce identical goods, the goods are perfect substitutes of each other. This causes the demand for the goods to be perfectly price elastic and the demand curve or average revenue curve to be almost horizontal. Consequently, the firms have are called price takers because they have no market power. Market power is defined as the ability of a firm to change the price of a particular good in the market by changing the quantity output of that particular good. There is also perfect information and perfect mobility of resources in the perfect competition market. Monopolistic Competition Monopolistic competition market/industry has large number of firms because there are no barriers to entry and exit. As the firms produce goods that are differentiated such as books, the goods are close substitutes to each other. This causes the demand for the goods to be price elastic. Consequently, the firms are called price setters because they have some market power. Oligopoly Oligopoly market/industry has small number of large firms because there are high barriers to entry and exit. As the firms produce goods that may be differentiated such as breakfast cereals or homogenous such as oil, the goods have few close substitutes. This causes the demand for the goods produced by the oligopoly firms to be price inelastic. Consequently, oligopoly...
Words: 329 - Pages: 2
...Differentiating Between Market Structures ECO/365 March 12, 2014 Differentiating Between Market Structures Kudler Fine Foods is a high end gourmet market for shoppers with discriminating tastes and who are searching for only the highest quality meats, cheeses and dairy, bakery products as well as a fine selection of domestic and imported wines. Kudler Fine Foods has experienced substantial growth and has set its sights on the expansion of the services it provides in an effort to improve efficiency of its daily operations with the ultimate goal of boosting consumer purchasing. With the company’s current growth, Kudler Fine Foods is committed to implement changes to increase revenue and to cut costs. This paper will highlight the importance of research to the marketing strategy and the direction in which Kudler Fine Foods heads; additionally this paper will cover competitive intelligence and analysis in order to explain the role it plays in the development of marketing strategies and tactics. Finally, should Kudler Fine Foods require additional areas of research; this paper will point out those areas as well. First a brief description of market research; Marketing research is a study of a particular type of business that compiles information and analyzes data about consumers, competitors and the market being researched. Marketing research can be used to create a business plan, launch a new product, expand or enter into new markets, or make adjustments to existing services...
Words: 1345 - Pages: 6
...Market Structures Adam Timothy Rider ECO204: Principles of Microeconomics Evelyn Carlson 10/13/2014 When trying to gain insight into the local economy it is very important to understand the big picture of how the various market structures relate to each other. This can be accomplished by putting together some of the smaller pieces or characteristic of the market structure. These characteristics can be organizational, competitive or a variety of other features that categorize a firm as a specific market structure. Individual market structures can be described as the amount of firms producing identical goods and services. If you can identify the market structure you can often identify how they firms within the structure are going to price their products in the industry. The market structure will have an effect on the supply and demand of the different commodities in the market. The market structure will also influence barriers for entry and exit in the industry. In order to understand these structures in an economic community you must obtain an understanding of how they all work together to form the economic community. By the end of this report you will possess the necessary knowledge to understand the market structures in the micro economy. Before we begin to the inevitable breakdown of the individual market structures it is important to identify some of the key features of market structure in general. First it would be important to look at the...
Words: 2943 - Pages: 12
...cultural, and demographical factors. This essay will explain various markets structures which are monopoly, oligopoly, perfect competition and monopolistic competition. The purpose of this paper is to discuss the impacts of different environmental factors on the business operations of Barclays. The discussion has been made in the light of international accepted microeconomics concepts and practices. Market structures Monopoly is a market structure, where only a single seller producing a product having no close substitutes. This single seller may be in the form of an individual owner or a single partnership or a Joint Stock Company. Such a single firm in market is called monopolist. Monopolist is price maker and has a control over the market supply of goods. On the other hand, Perfect competition a market structure characterized by a large number of firms so small relative to the overall size of the market, such that no single firm can affect the market price or quantity exchanged. Perfectly competitive firms are price takers. Moving on, in an oligopoly, there are only a few firms that make up an industry. This select group of firms has control over the price and, like a monopoly, an oligopoly has high barriers to entry. The products that the oligopolistic firms produce are often nearly identical and, therefore, the companies, which are competing for market share, are interdependent as a result of market forces. In addition, Monopolistic...
Words: 1600 - Pages: 7
...Various Market Structures Julia R. Wiggins ECO 204 Kristian Morales October 14, 2013 Various Market Structures In this paper we will look at different types of Market Structures. There are many different types of firms in the market structures, some similar and some very different. This means that some firms, according to how the supply and demand will affect their pricing, will try to maximize their profits. Some firms very little substitutions or have no substitutions, which means that there is very little or no competition, so they can control their pricing. The purpose of the paper is to analyze the market structures to help make you aware of the different categories of market structures within the businesses. “Perfect competition is the market structure in which there are many sellers and buyers, firms produce a homogeneous product, and there is free entry into and exit out of the industry. There are six basic assumptions for the model of perfect competition.” (Amacher & Pate, 2012) Firms in the perfect competition are known as price takers. The products that each firm produces are usually the same, homogeneous. A good example of this is wheat; all products are exactly the same whether you buy it from a farmer next door or from the farmers market. With many sellers in this market, no decisions that a seller makes will affect the price of the product. A firm in this market as many buyers as it does sellers, no one buyer has any market power. It is easy to...
Words: 1970 - Pages: 8
...Market Structure Eva Gebhards Professor Dr. Paul Prentice Applied Managerial Economics ECON616 Colorado Technical University December 4, 2014 In my first paper I wrote about gasoline. The oil market/industry has a major effect on gas prices; therefore I chose to write about this industry in my second paper. The oil industry is large and one of the fastest-growing manufacturing industries. 1. Which of the 4 classes of "Market Structure" comes closest to describing the current state of the market? The structure of the world oil market is set to be an Oligopoly industry as the oil market is dominated by few large suppliers. For an industry to be classified as an oligopolistic industry it has to have a small number of relatively large firms that are mutually independent, and which hold a very large amount of output. Also, an oligopolistic industry has differentiated or standardized products, and non-price competition is very important among firms selling differentiated products. In addition the barriers to entry are very difficult, because not every country can produce oil, and therefore cannot enter the oil market, and take advantage of the abnormal profit. The profit of firms is determined exactly in the same manner as in other forms of markets: from optimum quantity where marginal revenue equals marginal cost, price is determined on the demand curve and unit cost on the average total cost curve. However, this determination may be affected by the kinked demand curve...
Words: 932 - Pages: 4
...Shantel Mackey Market Structure Simulation University Of Phoenix ECO/ 365 July 18, 2011 | |Perfect competition |Monopoly |Monopolistic Competition |Oligopoly | |An example of an organization| Investment Bank | Electric Company| Clothing Co. | Wireless Co. | |Goods or services produced by| Homogeneous |No close |Differentiate | Homogeneous/ | |the organization | |Substitutes | |Differentiate | |Barriers to entry | None | Extremely High | Somewhat Low | Somewhat High | |Numbers of organizations | Large Sums | One | Several | Few | |Price elasticity of demand | None |Absolute |Somewhat |Limited Owing to | | | | | |Competition | |Economic profits (Is there a | No | Yes | No | Yes | |presence of economic profits?| | | | | Abstract ...
Words: 1007 - Pages: 5
...MARKET STRUCTURES Brandi Milostan ECO204: Principles of Microeconomics Professor Mellon July 6, 2015 Welcome Mayor Knowsnothing Congratulations on the start of your new journey Mayor Knowsnothing. I appreciate the opportunity to work with you and get you up to speed on all of the market structures and answer any questions that you may have. I will explain to you the characteristics of each structure and provide you with examples of each from our neighborhood. I’ll help you to understand what pressures they are faced with and how government limitations and international trade might affect them. So, let’s get started on another adventure for you in learning market structures! Let’s Learn the Market Structures There are four different types of market structures. The table below lists the four market structures and each of their characteristics. MARKET STRUCTURE | NUMBER OF FIRMS | TYPE OF PRODUCT | ENTRY INTO INDUSTRY | FIRM'S INFLUENCE OVER PRICE | EXAMPLES | PERFECT COMPETITION | MANY | IDENTICAL | EASY | NONE | AGRICULTURAL CROPS | MONOPOLISTIC COMPETITION | MANY | DIFFERENTIATED | EASY | MODERATE | MANY LOCAL RETAIL OUTLETS | OLIGOPOLY | FEW | EITHER IDENTICAL OR DIFFERENTIATED | DIFFICULT | MODERATE TO SUBSTANTIAL | AUTOMAKERS | MONOPOLY | ONE | UNIQUE | IMPOSSIBLE | SUBSTANTIAL | LOCAL UTILITY | (“Market Structures”, Economics Online Tutor, July 24, 2012) Perfect competition is used as a model for the other market structures...
Words: 2234 - Pages: 9
...Market structures like Monopoly, Duopoly, and Oligopoly and Monopolistic competition in any industry in Australia. Market structure reflects all the most important aspects of the market - the number of firms in the industry, the type of product produced, the possibility to enter and exit of firms, number of customers, the ability of a single firm to influence the market price. The lower the firm's ability to influence the market, the more competitive the industry is considered. In the limiting case where the degree of influence of one firm is zero, talk about a perfectly competitive market. Companies and business through time they live attached to the four market structures. This essay will give some examples of the four market structures in Australia like Monopoly, duopoly, oligopoly and monopolistic competition. Companies and businesses can move from one market structure to another structure of the market during the period of operation. These changes between the structures may be the result of product changes, the introduction of competition and the interests of the client. This essay will give clear examples on each market structure: 1. Monopoly occurs when a company produces products for which there is no substitute. Due to the fact that the company has no competitors, it has full control over the delivery of these products and, as a single vendor can create barriers for potential competitors. In the real world monopolies that exist to date - this is some of the...
Words: 280 - Pages: 2
