Deloitte Market Structure Analysis

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Hirschey(2009) explains the law of diminishing returns “As the quantity of a variable input increases, with the quantities of all other factors being held constant, the resulting increase in output eventually diminishes (Hirschey, 2009, pg.253). This is illustrated within the table, as it is seen that at a certain point, paying an additional employees, reduces output.
Milestone IV
Market Structure
Deloitte operates in an oligopolistic market structure. In Fundamentals of Managerial Economics, Hirschey (2009) explains that “In oligopoly markets, a large percentage of the overall market is taken up by a few leading firms” (Hirschey, 2009, pg.509). The accounting services industry is mainly dominated by four companies: Deloitte Touche Tohmatsu,
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In the book, Crafting and Executing Strategy, Thompson, Strickland, and Gamble, explain that “There are countless are variations on the competitive strategies that companies employ, mainly because each company’s approach entails custom-designed actions to fit its own circumstances and industry environment.” (Thompson, Strickland and Gamble, 2010, pg.140). One of the strategies that Deloitte employs is the broad differentiation strategy. A broad differentiation strategy is “A business strategy in which a company tries to gain a competitive advantage by providing a unique product or service, or providing a unique brand of customer service” (Broad Differentiation Strategy, …show more content…
Deloitte utilizes pricing strategies in attempt to runs their operations as efficiently and profitable as possible. “A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins, input costs and other factors.”(The Economic Times, n.d.). In order to increase profits, Deloitte uses analytics in their pricing strategy. Pricing analytics helps Deloitte to make more effective and informed business decisions and gives them a competitive advantage when responding to changes in

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