Introduction
There are countless advantages of the supply and demand pressures on the market and the different ways that it operates. The most crucial, is the market regulating utility, for example, they help organizations set a market-clearing price, at which pay-off for both the buyer and seller can be maximized. They also help inspire a competitive atmosphere as firms with more valuable products can charge more, thus increasing profits. Although, this trend differs in varying market structures but normally consumers are willing to pay an increased price for finer products. The most extensive limitations of supply and demand pressures may be socially inconvenient outcomes as seen in the case of a market structure characterized by monopoly, where one organization controls all production, resources and thus possesses exploitative capabilities in terms of pricing and promotion. One example can be of utility companies (water, gas, electricity etc) that have an essential monopoly over production resources of a certain geographical area and charge prices as increased as they wish.
Target operates in a highly concentrated oligopolistic retail industry. It directly competes with another giant company, Wal Mart and both of these organizations hold over 75% of the entire retail market of the United States. Both these firms are major competitors globally too and are seen as collectively second to none. The remaining chunk of about 25% of the US market is held by multiple retail sources that only provide one source of product, which stays afloat, but ends up struggling to grab more attention and expanding share. An oligopolistic business structure is characterized by a handful of organizations operating in a difficult competitive environment having an elevated influence over each other’s pricing. It involves a considerate demand curve, high barriers to entry, high