Differentiating Between Market Structures And The Market Structure
Arthur Levitt once wrote “Our markets have not achieved their great successes as a result of government fiat, but rather through efforts of competing interests working to meet the demands of investors and to fulfill the promises posed by advancing technology"(Arthur, Levitt. (2015)). The competitive nature of an industry is what drives our markets throughout the world. An industry consists of all firms making similar or identical products. McDonald’s corp. which falls underneath the food and beverage industry has implemented multiple competitive strategies in accordance with the microeconomics concepts. The market structure McDonalds corp. competes in, the level of competition, three or more competitive strategies, and recommendations related to the strategies will all be explored.
The Market Structure
McDonald’s originated in America around 1955 and became a global fast food chain. Many organizations in the fast food industry sell the same product as McDonalds. After reviewing the market structures I have chosen to classify McDonald’s as a monopolistic competition. Monopolistic competition is a market structure which numerous of firms sell products that are similar but not identical. (Colander, D. C. (2013)) This market structure was simply chosen due to Burger King and Wendy’s selling burgers and fries just like McDonalds but, with their own unique style and taste. The monopolistic market structure differentiates from the…