Nobody downloaded yet

Project Part 3: Market Structure, Strategic Behavior, and Market Power - Research Paper Example

Comments (0) Cite this document
Summary
McDonald Company is a business enterprise that deals with a chain of restaurants, which are either operated by the company itself or by individuals outside the company’s management and who pay rent and other fees to the company in order to be allowed to use the company’s…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Project Part 3: Market Structure, Strategic Behavior, and Market Power
Read TextPreview

Extract of sample "Project Part 3: Market Structure, Strategic Behavior, and Market Power"

Download file to see previous pages Market conditions refer to the factors that influence the sale of a commodity in a certain area (Krier, 2005). These factors determine the ability of a business to compete especially when introducing new commodities in the market. Such factors include and not limited to number of competitors already in the market, the level of competition as well as market growth rate. It would be difficult for a business to be able to capture huge market share at the first entry based on the fact that it takes time to form a strong foundation for coping with other competitors especially those which may have already acquired market power. Market power is the ability of a business to capitalize on its uniqueness and low competition on its products by taking control of the market prices as well as supply without compromising customer loyalty (Krier, 2005). The customer loyalty may be due to lack of a better option as a result of monotony in the supply of their requirements.
McDonald Company has been able to acquire a significant market for their products, which has given it an upper hand in the sale and distribution of quality food with the help of their franchisees, who owns at least 60% of MacDonald’s restaurants (Love, 2005). The company has maintained its market strength by developing products which fit the needs of its customers especially due to the fact that some of the customers are keen on maintaining their health as well as weight by avoiding some types of food (Love, 2005). To check on this, the company has embarked on a strategy aimed at increasing sales through the extension of available menus as well as its working hours in all its subsidiaries, which has helped in attracting more customers as well as maintaining the already existing ones.
Though the company has been able to acquire global recognition due to the long experience in the market, there are also other players for example the Burger king company, which offers the same ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Project Part 3: Market Structure, Strategic Behavior, and Market Power Research Paper”, n.d.)
Project Part 3: Market Structure, Strategic Behavior, and Market Power Research Paper. Retrieved from https://studentshare.org/miscellaneous/1562211-project-part-3-market-structure-strategic-behavior-and-market-power
(Project Part 3: Market Structure, Strategic Behavior, and Market Power Research Paper)
Project Part 3: Market Structure, Strategic Behavior, and Market Power Research Paper. https://studentshare.org/miscellaneous/1562211-project-part-3-market-structure-strategic-behavior-and-market-power.
“Project Part 3: Market Structure, Strategic Behavior, and Market Power Research Paper”, n.d. https://studentshare.org/miscellaneous/1562211-project-part-3-market-structure-strategic-behavior-and-market-power.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Project Part 3: Market Structure, Strategic Behavior, and Market Power

Market Structure

... and finally how the production takes place and the relative costs associated with it. Market Structure This article discusses an industry which is an oligopoly in nature. Oligopoly is that form of market structure where the industry or the market is dominated by smaller number of sellers. (McEachern 2008). Since in oligopoly, there are smaller number of sellers therefore each participant in the market is aware of what other is doing and thus the decisions of one firm is either influenced by the decisions of other firms or its decision influence the players in the market. The overall strategic planning process of each of the player in the market therefore takes into account the actions and strategies of other players. (Bowles 2006... ...
5 Pages(1250 words)Essay

Market structure

...in the labor market equilibrium from E1 to E2. Diagram 2 on the other hand illustrates that a rightward shift in the demand curve from D1 to D2 has resulted in an increase labor demanded from q1 to q2 and an increase in wages from W1 to W2. This change has resulted in a shift in the labor market equilibrium from E1 to E2. The diagrams below illustrate how labor market equilibrium is affected by a shift in supply. Diagram 3 Diagram 4 Diagram 3 above illustrates that a leftward shift in the supply curve for labor from S1 to S2 has resulted in a reduction in supply from q1 to q2 and an increase in wages from W1 to W2. When Supply is at S1 the labor...
2 Pages(500 words)Essay

Market Structure

...the creation of monopolies to ensure that consumers are not exploited by the firm’s actions. Therefore, monopolies that are not owned by the government are now a rarity. An example, however, could be that of Deutsche Telekom which was previously owned entirely by the government in Germany but still holds considerable monopoly power in the telecommunications arena in the country. CONCLUSION: According to an understanding of the characteristics, assumptions and aspects related to the market structures that have been discussed in the paper, it can be concluded that the most preferable market structure for a seller to operate in would be a monopoly, so that...
9 Pages(2250 words)Research Paper

Market Structure

...? RUNNING HEAD: Market Structures Market Structures Submitted By: Submitted Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure. Perfect Competition: A market is said to be in perfect competition when there are a large number of buyers and sellers perfectly aware of the market prices, and no firm is large enough to have any economic power over the industry (“Dewett, 1983”). The two main...
8 Pages(2000 words)Research Paper

Market Structure

...market structure This market structure presents varied characteristics since the present firms often compete against each other despite the fact that they show a higher degree of interdependence. There exists the characteristic of non-price competition and an often possibility of collusion among the firms. There are barriers imposed to the new market entrants (Oner, 2013). The Californian market structure The markets pose different ownership structures with some depicting horizontal while others depict vertical structures. Research ascertains that power...
8 Pages(2000 words)Essay

Market structure

.... However, these usually occur on a relatively minimal scale compared to industries with few barriers to entry like perfect competition and monopolistic competition. Frequently, these entrants will compete on the basis of product quality. Alternatively, they may try to develop substitutes as a part of the competition. The degree of competition will be manifested through high prices and profitability levels. Many players in market structures with high barriers to entry will refrain from competing on the basis of price because of the kinked demand curve. Firms in these industries tend to exhibit asymmetric behavior. If a player increases their prices, then non cooperative...
8 Pages(2000 words)Research Paper

Microeconomics Project Part 3: McDonald's corp. Market Structure, Strategic Behavior, and Market Power

...a market that can be defined as ‘pure competition’ where the competition within the industry makes it difficult for the company to increase the prices of its products. Hence, company gains leverage through creative inputs. McDonalds has created a niche market position across the globe because has adopted global values in its operation and values. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals (Grant, 2007). McDonald’s strategy to customize its products as per the changing requirements of the people has been its major strategic win. Apart from this, the various franchisees and outlets of...
2 Pages(500 words)Assignment

Market Structure

... to entry. Such high profits and prices encourage the industrialist to improve on its product quality continuously as well as develop viable substitutes to maintain its power in the market. This is known as the dynamic competition. Therefore, there is a need for continuous innovation in this technological advanced age even in markets structure with high barriers to entry. (Lipsey, 2008) Question 5: Explain the price elasticity of demand in each market structure and its effect on pricing of its products in each market. Perfect Competition The price of elasticity, in a perfect competition market structure, is perfectly elastic. This means that the firm can sell all of its output at the market price. The firm is only a small part... ) ...
8 Pages(2000 words)Assignment

Market structure

...a large no. of buyers & sellers has the market power to set the price of homogeneous goods & services. In a perfectly competitive market, the no. of buyers & sellers are so numerous & well structured that the market price of commodities are beyond control of the individual buyers & sellers and all the monopolistic powers are eliminated from the market (Wong, 2010, pp.1174–1177). A market to be perfectly competitive must possess the following characteristics: All firms are price taker, having a relatively small market share, operating on a profit maximization objective. The firms sell...
9 Pages(2250 words)Essay

Market Structure

...Market Structure Contents Introduction 3 Discussion 3 Perfectly Competitive Market Structure 3 Characteristics of Perfectly Competitive Market 3 Price output Decision in Perfect Competition 4 Monopolistically Competitive Market Structure 6 Characteristics of Monopolistically Competitive Market 6 Price output Decision in Monopolistic Competition 7 Oligopolistic Market Structure 8 Characteristics of Oligopoly Market 8 Price output Decision in Oligopoly 9 Monopoly Market Structure 10 Characteristics of Monopoly Market 10 Price output Decision in Monopoly 11 Economic Efficiency in Market Structure 14 Efficiency in Perfect Competition 14 Efficiency in Monopolistically Competitive Market and Oligopoly Market 14 Efficiency... in...
14 Pages(3500 words)Essay
sponsored ads
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.

Let us find you another Research Paper on topic Project Part 3: Market Structure, Strategic Behavior, and Market Power for FREE!

Contact Us