Coupon – Is a voucher that entitles somebody to a discount, refund, or gift, typically issued as a sales promotion. Customer – Is a person or company that buys goods or services. Product – Is something that is made or created by a person, machine, or natural process, especially something that is offered for sale. Promotion – Is advancement to a more senior job or a higher rank, grade, or position. Service – Is work done by somebody for somebody else as a job, duty, punishment, or favor.
MGMT 4020 June 24, 2013 Homework Assignment #2 Competition is very high in the North American wholesale club industry. Every wholesale club wants to sell top-quality products at prices less than others in order to attract draw customers. And they all want to display low prices on pallets or inexpensive shelving, therefore, they have very low costs for store decor and fixtures, have comparatively low labor costs, and spent minimally on advertising and customer service. Five Forces Analysis 1. Bargaining Power of Buyers is moderate.
All companies cannot dictate the price of the products. Imperfect Competition also known as Monopolistic/Competitive market is the complete opposite of Perfect Competition. Imperfect Competition means that all companies have the power to dictate prices of product and all companies are able to join the same business if the revenue is up. Oligopoly is when a small group of companies control a specific market. Monopoly is where only one company is providing a good and or service.
The products or services sold are exactly the same, which is known as 'homogeneous' which are all the same price. Firms earn only normal profit (the bare minimum profit necessary to keep them in business). If firms started to earn more than that the absence of barriers to entry means that other firms will enter the market and drive the price level down until there are only normal profits to be made. Even the technology used is the same throughout all the companies. www.economist.com www.oligopolywatch.com Monopoly A definition of Monopoly is 'it exists when there is only one supplier of a product or service.'
• Broad differentiators have developed business-level strategies to better differentiate their products and lower their cost structures simultaneously. ▫ Example? 18 The Broad Differentiation Business Model 19 Strategies in Fragmented Industries • Fragmented industry consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price. ▫ Low entry barriers that permit constant entry so serves to keep an industry fragmented Anyone can open a
Section one was about Highly Competitive Markets. There are two types of highly competitive markets: those with perfect competition and those with monopolistic competition. I learned that perfect competition equals more competition and pure monopoly equals less competition. The only difference with the two is that sellers offer different, rather than identical, products. Section two was about Imperfectly Competitive Markets.
| 2(3)Some product knowledge will exist from current sales members, but some training will be needed for new sales people. | | Financing/ROI knowledge of sales team(2) | 3(2)Unfamiliar with pricing and financing low-cost products, and would require motivation to get commission off lower-priced sales made. | 1(2)Has the most experience with financing all sorts of price-leveled products. | 2(2)There will be a lack of knowledge from the existing team, but can piggy-back off of the knowledge from the ISR’s.
Differentiating Between Market Structures ECO/365 There are four main market structures that the majority of companies and firms are labeled under. They are; perfect competition, monopoly, monopolistic competition, and oligopoly. A perfect competition is where the price of a product or service is made by the demand of which that is being supplied. A monopoly is where a firm gains all sales due to its supply power and it prevents other firms from entering the same market. A monopolistic competition is where several firms compete in the same market offering similar products or services but the products differ which makes it not a perfect competition.
Monopoly is a firm which is the only seller of a unique product which has no close substitutes. In a market of perfect competition, the level of competition is very high, and each firm is a small entity, a price taker. There are four assumptions for a monopoly to exist: there is only one seller but many buyers, high barriers to entry (both natural and artificial), a highly differentiated product such that it is difficult or impractical to copy the product, and imperfect information. There are four main assumptions for a perfectly competitive market, which are: there are many sellers and buyers, low barriers to entry, homogenous product and perfect information. This essay attempts to explain the reasons for the high market power of a monopoly, low market power for a perfectly competitive firm, and the limitations of monopoly and the choice between a monopoly and a perfectly competitive market.
These structures are: perfect competition, monopolistic competition, oligopoly and monopoly. Within these four market structures, government intervention is needed for various reasons. Perfect competition is a market structure that has a large number of buyers and sellers who have little to no influence over prices or output. Other features of a perfectly competitive market are; that there is freedom of entry and exit from the market, meaning that firms are able to establish themselves in the industry easily and quickly and that there are no barriers to entry. Also, all firms produce a homogenous product, with little to no branding, where products are perfect substitutes for each other in the market such as milk.