We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Market Model Patterns of Change - Essay Example

Comments (0) Cite this document
Market Model Patterns of Change Name: Institution: Market model patterns of change The Coca-Cola Company was started in 1886 as a soda fountain beverage that was sold in glasses, in America. Its growth was impressive especially after a strong bottling system was developed that resulted to the world famous Coca-Cola company that we have today (Barlow, 2005)…
Download full paperFile format: .doc, available for editing
Polish This Essay96.2% of users find it useful
Market Model Patterns of Change
Read TextPreview

Extract of sample
"Market Model Patterns of Change"

Download file to see previous pages According to International Business (2009), the Coca-Cola Company used to be a monopoly initially when there were no competitors. This is because it was the only seller that had a well-defined commodity since there were no substantial substitutes of a similar commodity from other firms into the market. However, the Coca-Cola Company can no longer be defined as a monopoly. Its market model (monopoly) has undergone change into oligopoly. International Business (2009) argues that this is due to the presence of the Pepsi and Schweppes Companies among others that have brought plenty of competition in the market for the Coca-Cola Company, with all their products. For the oligopoly market, model, each supplier has a possibility of influencing the market price; thus, leading to competition among the suppliers. In an oligopoly market model, there are only a few industries that dominate the market. For instance, the Coca-Cola Company and Pepsi dominate the bottled and canned soft drinks industry, in most countries. They have control over the market prices and supplies and have high barriers to entry. Their products are nearly identical; hence, the companies involved compete for the market share, and are independent due to the market forces. According to Barlow (2005) there are short-run and long-run behaviors of oligopoly. Long run can be described as a period in which all factors of production, as well as cost, are variable. In this case, industries are able to adjust to cost. The short run refers to a period where the quality of some inputs cannot be raised beyond the priced amount that is available; hence, short run industries can only be able to influence the prices through adjustments made to production. However, in economics, long run models can shift from short run equilibrium where the supply and demand, reacts to price levels with more flexibility. Thus, oligopolistic companies share a variety of short run and long run behaviors such as interdependence, rigid prices, competition, mergers and collusion (Barlow, 2005). The Bertrand model and the contestable markets theory leads to a long run oligopoly market-equilibrium price and output solution, which is similar to that achieved in a competitive market (International Business, 2009). Bertrand argues that products and production costs are identical or similar the customers are likely to purchase from the company selling at the lowest possible price. In addition, the kinked demand curve model of oligopoly that was developed by Paul Sweezy assumes that a business in an oligopoly may face a dual demand curve for its product based on the reactions of other companies in the market to a change in its variables (Cameron and Green, 2009). Thus, short-lived price war between rival companies happens under this model, in which firms are seeking to seize a short term advantage and gain some extra market share. Areas in the company that could lead to transaction costs include the global environment, the competitive environment and the socio-cultural differences. The global environment has become quite sensitive forcing many companies that operate locally to join the global market; thus, resulting in globalization. The Coca-Cola Company is also sensitive to the strategies of globalization, which has led to high competition, as well as to transactions costs. The competitive environment also plays a similar role. Coca-Cola Company, which is a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Market Model Patterns of Change Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Market Model Patterns of Change Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1441417-market-model-patterns-of-change
(Market Model Patterns of Change Essay Example | Topics and Well Written Essays - 1000 Words)
Market Model Patterns of Change Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1441417-market-model-patterns-of-change.
“Market Model Patterns of Change Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1441417-market-model-patterns-of-change.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Apache Metals, Inc. Case Study
The company’s production lines are tailor made to suit customer’s requirements, application and the industry, but because of inefficient team managers, the company has been failing to receive funding. The project managers for each of the production lines have been failing on their job and the senior management has contributed to the failure of the project managers.
6 Pages(1500 words)Essay
Market Model Patterns of Change Instructions
In industry, crude petroleum is needed to be refined in the refineries to obtain various energy products such as, petrol, paraffin and natural gas. The production of petroleum by the industry especially, in USA has introduced a large distributor to the total petroleum in the global economy.
4 Pages(1000 words)Essay
Market Model Patterns of Change
The paper examines automobile industry and analyzes the patterns of change that characterize the industry. Industry Description Automobile industry is one of the global most oligopolistic industries. The market products of this industry are spread world wide and dominance is common among the companies dealing with automobiles.
4 Pages(1000 words)Research Paper
Market Model Patterns of Change
Due to the improvement of telecommunications technology, Nokia Corporation industry has recently advanced tremendously. Nokia corporation has a rich history, it started its mobile production process by the year 1979; the company created a radio telephone.
4 Pages(1000 words)Essay
Market Model Patterns of Change
It operates under different market models like monopoly and oligopoly. A publicly traded company can be described as a company that has securities and is traded on the stock exchange market. An oligopoly market structure refers to market structure with limited competitors dominating the markets with similar products/services whereas;monopolies are companies with no major competitors dealing in their same line of product/service (Gitman& McDaniel, 2009).
3 Pages(750 words)Essay
Market Model Patterns of Change
In the very beginning, coca cola was a monopoly. This was eventually disrupted by the introduction of Pepsi into the market. The market became an oligopoly type of market. Coca Cola and Pepsi are the major soft drinks manufacturers in the world. Other companies have come into existence such as RC Cola which is the third largest soft drink manufacturer in the world (Bodden, 2009).
4 Pages(1000 words)Research Paper
Market Model Patterns of Change
to market structure with limited competitors dominating the markets with similar products/services whereas; monopolies are companies with no major competitors dealing in their same line of product/service (Gitman & McDaniel, 2009). This paper aptly examines the patterns of
3 Pages(750 words)Essay
Climate Change Patterns Around the World
The effects of climate change on public health in developed and developing world differ because of the economic and social deference. Developing nations are more
2 Pages(500 words)Essay
Lewin's Model of Change
The theory is situation-specific because it focuses on change alone, and the dynamics surrounding it. It is one of the most specific
4 Pages(1000 words)Essay
Change Model
As the saying goes, "Change is inevitable." In the current competitive business world, companies need to constantly change their processes so that they can survive in the market (Cummings, 2009). Change is no longer optional for companies, and they now have to learn how to love change so that they can have a competitive advantage.
4 Pages(1000 words)Essay
Let us find you another Essay on topic Market Model Patterns of Change for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us