Business Environment Essay

3822 Words Jul 18th, 2012 16 Pages
I. Introduction
Trung Nguyen was established in 1996. At first, it as a fledgling brand in Vietnam and after that, they have created their reputation and familiar brand name to both customers at home and abroad. Over the past 10 years, from a small coffee company in Bon Me Thuot, Trung Nguyen has developed as a powerful corporation with 6 member companies with the major industries include manufacturing and trading tea and coffee, franchise and distribution services, modern retail stores. With their slogan “Bring a new creative inspiration”, they still create a phenomenon coffee not only in Vietnam but also all over the world. Trung Nguyen coffee products and G7 instant coffee has been exported to 43 countries around the world with main
…show more content…
* Perfect competition’s conditions: * There are many sellers and buyers but they do not have any influence on each other. In some cases, the price is fixed so sellers set prices and buyers must accept the price is offered in stores or shops. * Homogeneous products. It means that customers do not care about where the products come from even it is from competitor’s company. * There is no barrier to joining or withdrawing from the market because barriers to entry (social, political, technology…) can effect on new firm to enter into the market. * Buyers and suppliers have perfect information. They should have known all about the markets, prices, products… but in a real life you cannot know above information of competitors. There are many types of markets such as: * A monopoly is a market in a particular product in which a single producer can fix an artificial price. This state occurs when there is only one seller of a product. * Only one seller that may be effect on the price. * Heterogeneous products. * High barriers to entry. * A duopoly is a market with two sellers competing with each other with a homogeneous good. * Not too much sellers and have a little impact on the price. * Heterogeneous products, sometimes they can be replaced. * Low or no barriers to entry. * Monopolistic competition exists

Related Documents