Market structure and pricing

Introduction Competition in business can vary from one organization to another, depending upon individual preference and the nature of the industry. In economics, market structure denotes those firms who produce homogenous goods. On the market structure spectrum, an organization starts with perfect competition on one end and makes its way towards monopoly on the other extreme end. In the middle of these two contrasting market structure types, we have duopoly, oligopoly and monopolistic competition based on the level of competition and market concentration. Since perfect competition is a hypothetical phenomenon organizations shall not indulge in this. Companies and organizations tend to move from monopolistic competition and make their way towards…

The market in the form of monopolistic competition model, those that fall between the markets alone, free competition and full of pure monopoly, are many. One of the important forms prevailing in monopolistic competition market is oligopoly, oligopoly which is narrower types of monopolistic competition. The oligopoly market contain a small number of producers may not exceed two in some cases, and called duopoly market. The oligopoly market problems are clearly distinct from the problems of free…

Schwinn’s pricing strategy encourages great opportunity to target specific niche markets and align pricing with competition to increase industry market share. Although the brand’s biggest challenge is its traditional image, Schwinn’s pricing can be considered affordable for college students. In regards to pricing perception, market research can be conducted to determine if this particular market will associate low prices with product quality and if they are willing to pay higher prices. Along…

Research Project 1 Introduction In todays’ market there are a variety of consumers that offer similar products. Organizations must think of ways to be more innovative in order to make their product stand out from other organizations that cell similar products. One of the best ways organizations of been able achieve the ability of standing out from its competitors is through pricing. Pricing strategies allow organizations to look at variety of factors, including the type of consumers that may be…

Pricing is influenced by desired net income, competitive position, and market structure (Cleverley, Cleverley, & Song, 2012). Desired net income, is the starting block for most short- and long-term pricing decisions. Net income is the difference between revenues and expenses (Cleverley, Cleverley, & Song, 2012). In the business world, there must be enough revenue in sales of products and services in order to maintain the business. If prices are not controlled, the business could suffer greatly.…

What is causing the problem? Virgin is a U.K based company which was one of the top three most recognized brands in Britain. It’s cellular operations in U.K had been among the top stories, but in Singapore the company had run into difficulties with hardly 30,000 subscribers and having a very low penetration with consumers aged 15-29. As far as the U.S industry, the mobile market was very overcrowded and saturated. Virgin Mobile did not have a large advertising budget as the other carriers in…

price and the customers’ perception of the value of the product. The majority of managers believe that they do not have the superior power to set prices in dynamic markets. There are different options that can bring certainty to firms when, by implementing these alternatives firms can improve profitability. One important practice for companies is to focus in the process adapting prices. This helps firms to increase the price effectiveness. Although, this practice is an important step ahead, it…

company depends on various factors. Strategic capital structure would cater long term financial solution for the company. Capital structure of a company will be consisting of both debts and equity. The ratio between debt and equity will be decided based on number of strategic factors such as industry, PEST factors, legal and corporate governance of the company. When deciding the capital structure, organizations should understand both positives and negatives of the capital structure selected. For…

Industry and the organization As part of this project, we have selected the consumer apparel and footwear industry, which is represented by Nike Inc. About the company Nike Inc. is an American multinational corporation that designs, develops and markets sports footwear, apparel and accessories under its brand name. The company was founded in the year 1964 as Blue Ribbon Inc. , but was then named as Nike Inc. in 1970. The company is listed on New York Stock Exchange, under the ticker symbol of…

technology and technological products, it not only manufactures, but also markets media devices like laptops, phones, music players among others. Apple has managed to acquire numerous consumers worldwide most of whom are very loyal due to the quality of apple products. The nature of products that apple produces places it in the competitive Market types are classified according to the presence or absence of competition. In Microeconomics, Competitive markets have many buyers and sellers. So…