Market Structure Essay

1475 Words6 Pages
The purpose of this essay is to compare the market structure model of four different industries, which are the soap industry in Australia; the petrol retail market; the international diamond market; and the market for tomatoes. First of all, their market structure will be described in detailed. Then, a graph will make comparisons of these four industries structures in a clear way with a view to demonstrating the differences of these market models. The first industry, for soap, is a typical example of utilizing monopolistic competition model as market structure. Under this form of market, although there are a lot of producers, the products they sell are somewhat differentiated. Moreover, there is free entry into and exit of the firms from this industry. To be specifically, in the soap market, various producers exist in this segment, such as Lux, Pears, Safeguard, etc., who are controlling a small proportion of market independently. Each of these sellers has no sufficient power to influence others’ price-output. What is more, products of each soap brand are different from others according to the distinctive packaging, trade mark or their functions. For instance, some brands of soap emphasize the adorable fragrance of their products, while some sell soaps with good disinfection function. In order to attract more consumers and promote products, each firm invest different amount of money to do advertisement or selling activities from others. It means they never undertake selling costs together and conduct promotion individually. Lux is one of the biggest soap companies in Australia. They usually invite celebrities in their advertisements with a large number of investments so that the interests of audience might be strengthened when seeing their favorite stars. Meanwhile, some other brands, like Safeguard, provide value pack to the customers and appeal to a considerable

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