...Differentiating Between Market Structures Differentiating Between Market Structures The “Differentiating between Market Structures Simulation” applied all four of the market structures to four major divisions of a fictitious transportation company called as East-West Transportation. The four divisions for the various products they transport are Consumer Goods Division, Coal Division, Chemical Division, and Forest Products Division. This paper will summarize the advantages and limitations of supply and demand, the effectiveness of structure, and will analyze how each market structure maximized their profits. The market structures represented in this paper are Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition. Perfect Competition According to the simulation the Consumer Goods Division operated in a market that perfectly competitive. There were several buyers and sellers, each of the sellers being a price taker and there were no barriers to entry. The limitations or advantages of the Consumer Goods Division are as follows. The competition is high so the demand for their service will be low. Continuing to supply this service would mean the company would have to spend more on improving the quality of its service so as to maintain and increase the demand. In the simulation, the first decision made was whether to cease operations in the Consumer Goods Division or to continue operations and minimize any losses. Monopoly The second scenario in the simulation...
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...Differentiating Between Market Structures in Kudler Vennessa Knight October 7, 2013 ECO/365 Eugene Kaufman Differentiating Between Market Structures in Kudler Kudler Fine Foods is a company that has an unparallel dedication when making the best of products and services available to their consumers. The main goal of Kudler Fine Foods owner Kathy Kudler was to have a high consumer satisfaction rate when her business was first opened. Currently, Kudler Fine Foods has three store locations in California and has a goal to expand the company further. Recently Kudler Fine Foods has taken on successful marketing strategies that have placed the company in a higher profit bracket. Kudler Fine Foods does not allow its consumers to purchase their products without first giving their customers great information about the quality and availability of the products they are buying from the company. In this paper I will talk about the market that surrounds Kudler Fine Foods, the company’s competitive strategies, its strengths and weaknesses. I also will be researching the marketing structure in which Kudler Fine Foods operates. Kudler Fine Foods can be looked at as a booming business that specializes in specialty foods and food services that always meet and exceeds the expectations of its customers. In conjunction with providing excellent specialty foods, Kudler Fine Foods also employs the help of world renowned chefs to train Kudlers’ employees and customers on how to prepare...
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...1 Differentiating Between Market Structures Kimberly Adcock ECO/365 December 7, 2015 J. Carl Bowman Differentiating Between Market Structures 2 The Kroger Company has started in 1883, by the founder Barney Kroger, he had taken all of his life savings to open the first Kroger grocery store in Cincinnati, Ohio. “Over the next 130 years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of the shoppers” (thekrogercompany.com). There are more than 2,600 stores within 34 states and more than a dozen banners and their annual sales is in the billions. Kroger is one of the biggest grocery stores in the world. There are two departments that Kroger supermarkets, the bakeries and meat and seafood. History of Kroger “In the 1900s grocery stores bought their bread from an independent individual, but Barney Kroger has, come up with the idea to put the all of the main ingredients together to be able to make a profit” (thekrogerco.com). He decided that if he was to bake his own bread he would be able to decrease the price...
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...Differentiating Between Market Structures ECO 365 Vilma Vallillee There are different classifications of markets and the structure of a business determines which classification it will fall into. Markets are divided according to the composition of the business and what it provides to the specific market. Business composition is determined by the structure of market characteristics, and this helps determine level and area of competition. The characteristics in a market with the most concentration focus on number of purchasers and retailers, level in which a product has a substitute, price, entry and exit ease, and the level of mutual dependence. These structured variables are classified in the following market structures: perfectly competitive markets, monopolistically competitive markets, monopolies, and oligopolies (Colander, 2010). A perfectly competitive market exists when every contributor is considered a “price taker”, and none of the contributors influences the price of the product it sells or purchases. Two examples of a perfectly competitive market would be milk and gas. There could be many suppliers of both products, and if one supplier wants to raise their price higher than the price the market determines, consumers will go elsewhere to purchase the item in need. Other characteristics could include: zero entry and exit barriers, zero transaction costs, profit maximization, homogeneous products, and perfect factor mobility (Colander, 2010). In a competitive...
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...Running head: DIFFERENTIATING BETWEEN MARKET STRUCTURES Differentiating Between Market Structures Meleanie J. Cabrera University of Phoenix ECO/365 November 13, 2012 Anthony Interlandi Differentiating Between Market Structures The diamond industry is a lucrative industry that consists of segments that processes, mines, and markets industrial and gem diamonds. The start of the diamond industry was in India and Brazil. Before the mid-1800s diamonds were rare and only seen on monarchs. Before diamonds were discovered in South Africa the diamond trade industry was more profitable. However, the discovery of diamonds in South Africa initiated the simultaneous trading of diamonds that flooded the market with diamonds. Among the industry giants is De Beers. For over a century De Beers has controlled a significant portion of the diamond industry. De Beers Consolidated Mining, Ltd was formed in 1888. The forming of De Beers Consolidated Mining, Ltd created a monopoly for all diamonds produced and distributed from the diamond mines of South Africa. The market structure in which De Beers competes in is considered to be a monopoly. The fact that De Beers has the control over the distribution of rough diamonds clearly establishes a monopoly in the diamond industry. This market structure differentiates from other market structures uniquely because De Beers has dominated the market by having sole rights to sale rough gem quality diamonds. Even though other organizations within the...
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...Differentiating Between Market Structures Mindy Gomes ECO/365 January 19, 2015 John Bayer Differentiating Between Market Structures In the electronic learning toy industry, there are a few companies that stand out as leaders. VTech is one organization in the electronic learning toy industry that stands out above the rest. “VTech is the global leader in electronic learning products from infancy to preschool and the world's largest manufacturer of cordless phones” (VTech Corporate Information, 2015). Market Structures There are four different market structures in microeconomics. These structures are perfect competition, monopoly, monopolistic market, and oligopoly. These market structures vary based on the number of firms in the industry, and barriers to entry. Perfect Competition Perfect competition is often used as a reference point in economics, as it is a theoretical structure due to its highly restrictive assumptions. “A perfectly competitive market is a market in which economic forces operate unimpeded” (Colander, 2013, p. 267). To have a perfect competition these conditions must be met: both buyers and sellers are price takers, a large number of firms, no barriers to entry, and the firms’ products are identical. Monopoly In a monopoly, there is only one firm, with huge barriers to entry. “Monopoly is a market structure in which one firm makes up the entire market” (Colander, 2013, p. 287). There is no competition. A monopoly is at the opposite...
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...Differentiating Between Market Structures In order to understand the difference between market structures, it is vital to comprehend how supply and demand are affected by public and private goods, common resources, and monopolies. These structures directly affect how labor market equilibrium is established. There are a variety of organizations that show this market structure, which directly and indirectly affect labor supply and demand. For example, Wal-Mart is one specific company that displays characteristics from several different market structures. All goods available for consumption have two major characteristics and are put into two categories: excludable goods, which consumers can prevent consumers who do not pay for it from using it, or rivalrous goods, which are goods whose consumption by one consumer prevents simultaneous consumption of another consumer. Four separate classifications divide the goods. The classifications are private goods, public goods, common resources, and natural monopolies. Private goods are excludable, those which at low cost prevent those who have not paid for it from consuming it, and rival in consumption, those consumed for enjoyment by only one consumer. Most goods in the economy fall into this category. An example of a private good is designer clothing. A consumer can have designer clothing if the consumer is willing and able to pay for it, and once the consumer owns the clothing, no other consumer can have it. Public goods are the opposite...
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...Differentiating Between Market Structures Daniel St.Germain Eco 365 November 18, 2013 Ed Hartmann Differentiating Between Market Structures ------------------------------------------------- University of Phoenix Material Differentiating Between Market Structures Table * * Compare the four market structures by filling in the table. * | Perfect competition | Monopoly | Monopolistic competition | Oligopoly | * Example organization | Vendor at a swap meet | Google | Fast Food Industry | Automotive Industry | * Goods or services produced by the organization | Many different goods that are indistinguishable from other vendors | Internet search engine | Burgers, fries, onion rings, shakes, sodas, etc. | Vehicles; personal and commercial | * Barriers to entry | Close to none; if you can afford the entry fee you can sell | Impossible to surmount; currently there are three top search engines of which Google has close to a 90% market share | They are low barriers to entry. Any startup capable of getting financed can set up a burger joint on the corner. | The barriers to entry are high due to economies of scale, complex distribution channels, product differentiation, etc. | * Number of organizations | Nearly unlimited, as many as can fit on the grounds | 3 in this case, but one holds the majority of the market hostage, in this case, Google is the one. | There are many competitors in this market. As stated previously if one can get a loan...
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...Differentiating Between Market Structures ECO/365 September 29, 2015 Differentiating Between Market Structures Verizon Wireless is owned by Verizon Communications Inc. and provides telecommunications services to households and businesses in the United States and voice/data services to more than 200 destinations globally. Verizon Wireless is a leader in the industry, Americas first nationwide 3G wireless broadband network, and the nations largest most reliable 4G LTE network (Verizonwireless.com, 2015). Market Structure of Verizon Wireless Verizon Wireless competes in an oligopoly market structure. The oligopoly market consists of few firms, significant barriers to entry, strategic pricing between monopoly and perfect competition, restricted output and the possibility of long-run economic profit (Colander, 2013). The telecommunication service industry consists of a small number of sellers and has high barriers for new entrants. The four leaders of the industry are Verizon, AT&T, Sprint and T-Mobile, combined these firms dominate the market. One of the most important factors that make up the market structure are the barriers that exist. The barriers in the wireless cellular service market exist primarily due to the high costs associated with the infrastructure required to provide reliable wireless service. Another barrier is the limited amount of spectrum (an essential input required to produce cell phone and...
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...Differentiating Between Market Structures in Trader Joe’s ECO/365 Differentiating between Market Structures in Trader Joe’s Trader Joe’s is a grocery store that offers upscale grocery fare such as; organic produce, nutritional supplements, and health foods. Trader Joe’s was founded by Joe Coulombe and started in 1958 as a small chain of convenient stores in Greater Los Angeles Area called Pronto Markets. Since then, Trader Joe’s has expanded and now has around 375 stores in 30 or more states ("Trader Joe's Company Competition", 2012). Trader Joe’s focuses on providing customers with great quality foods that are hard to find, but at a great value that will save customers money. Trader Joe’s has its own specialty line of private label products, their stores are about 12,000 to 15,000 square foot, and have no service departments. This makes it possible for Trader Joe’s to keep costs down. Some of the products sold include, organic foods, unusual frozen foods, gourmet foods, imported foods, vegetarian food, imported and domestic beer and wine. In addition, Trader Joe’s sales non-food items such as; household cleaners, personal hygiene products, pet food, vitamins, and plants. In addition, many of Trader Joe’s products are environmentally friendly ("About Trader Joe's", 2013). Below is an evaluation of Trader Joe’s market structures, competitive strategies, and recommendations. Market Structure Trader Joe’s market may be viewed as a monopolistic...
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...Differentiating Between Market Structures Each market is unique and differentiating between market structures is critical in understanding a company’s economic future. Market structures have distinct dealings, which define the type of structure a particular organization belongs. Determining the difference between market structures includes the number of firms, barriers a new company would have when entering this market, along with pricing and output decisions and potential for profits. Monopoly, oligopoly, monopolistic competition, and perfect competition are the four market structures. In the market space of construction and mining equipment, for more than eight decades, Caterpillar Inc. has established key growth predictions among emerging markets to provide presence across the world in more than 180 countries. “Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives” (Caterpillar, 2013). When considering the construction and mining equipment market on a global level Caterpillar along with a few other big competitors dominate this market space. Caterpillar currently holds almost 30% of the global machinery market, which put them in a competitive position with Deere and Co., Komatsu, Terex, and Cummins (Trefis, 2011). Because the number of firms controlling this market is only a few, this defines Caterpillar in the oligopoly market structure. Colander...
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...Differentiating Between Market Structures ECO/365 April 15, 2013 Sangeeta Bishop Differentiating Between Market Structures Microsoft is the software giant responsible for bringing Windows to the PC. Microsoft is also a known and respected company in a global market. The tech giant has dominated the computer industry since its start in 1981. Due to the nature of such a huge company, Microsoft has its hands in multiple markets. Microsoft currently competes in file hosting, software, operating systems, and gaming consoles. Unfortunately, each one of the aforementioned markets differ from one another. For the purpose of this discussion, the market that is of concern is Microsoft’s evolvement in operating systems. Determining the market structure Microsoft competes in with regards to operating systems makes it much more manageable to implement competitive strategies to maximize profits. At a quick glance at the competitors, Microsoft has in operating systems one might think Microsoft operates in a monopoly. However, this is untrue. In a true monopoly, there is one seller, no close substitutes, blocked entry, and one firm that controls price. Microsoft currently competes with multiple companies like Apple, Google, Linux, Unix, and Sun Microsystems. Even though the market share of these companies is rather small if even noticeable, Microsoft would not fit into a monopoly category. In a recent study on market share of operating systems, Microsoft currently holds 91.62% of the...
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...Differentiating Between Market Structures - Kudler Fine Foods ECO/365 November 25, 2013 Differentiating Between Market Structures - Kudler Fine Foods Kudler Fine Foods is dedicated to providing quality products and services to its customers. The company operates three local upscale specialty food stores in the San Diego area. The company’s “vision is to be the premiere gourmet grocery store for those selective shoppers searching for the best meats, produce, cheeses, and wine” (Apollo, 2013, Strategic Plan, p. 3). Kudler has three stores in Southern California, and the owner Kathy Kudler considers the company as operating in an industry without direct competition (Apollo, 2013, Strategic Plan). This paper will attempt to address Kudler Fine Foods market structures, its competitive strategies, strengths, and weaknesses as well as provide some strategic competitive recommendations. Market Structure The monopolistic competitive market structure according to (Colander, 2010) includes several firms selling slightly different products. Kudler Fine Foods falls within this market structure. There is an easy entry into the market for new firms in the long-run, and these firms are large enough to influence total supply. The benefits of a monopolistic competitive market structure is the ability to act independently, and adapt to economic changes while meeting customer preferences, which differentiates the firm from its competitors. In other...
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...University of Phoenix Material Differentiating Between Market Structures Table Compare the four market structures by filling in the table. | |Perfect competition |Monopoly |Monopolistic competition |Oligopoly | |Example organization |Meat Packaging Company |Satellite & Cable Company |Clothing Company |Cell Phone Maker Company | |Goods or services produced by the |Packaging meats for sale at market |Providing tv service for purchasers of |Provide clothing for small to large |Cell phones for multiple cell | |organization |retailers |the service. |clothing retailers. |phone coverage providers. | |Barriers to entry |Must have the necessary room to house |There are many barriers to enter. First,|There are many small to large companies|There are only a few companies | | |mass amounts of cattle to keep up with |one must be able to have a patent |that produce clothing, products are |that make the cell phones that the| | |the demand. |product so that it does not interfere |similar but not one...
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...Differentiating Between Market Structures Anne Giorno ECO/365 Principles of Microeconomics February 16, 2015 Jong Yi Differentiating Between Market Structures The competitive balance between firms is unique in every industry. Some industries are dominated by a single company, while others have thousands of small businesses competing for market share. The composition of competitive firms is known as the market structure. The grocery industry is an example of monopolistic competition. This type of market structure can have a positive and a negative impact on the structures competitive strategies. Monopolistic Competition Monopolistic competition occurs when there are many different firms competing for market share over similar products. There are generally low barriers to entry, which means it is easy for a small company to become a competitor in the market. All of the companies in this system sell similar products and must make a string effort towards product differentiation. Products and services are considered to have a high elasticity of demand; meaning a consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic competition market should find it easy to find a similar alternative in their local area (Corcelli 2006). This differs from monopolies and oligopolies. A monopoly market is only one single seller. An oligopoly market is dominated by a small number of larger companies selling slightly different...
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