Competition, Monopoly, and Oligopoly & Monopolistic Competitive Market Term Paper

Competition, Monopoly, and Oligopoly & Monopolistic Competitive Market Structure - Term Paper Example The research explained briefly on the perfect competitive market structure and revealed some features of this market structure. It described the way firms maximize profits with the help of diagrams, the researcher revealed the way they maximize profit at the equilibrium point in both short and long run. Lastly, the conclusion summed up the discussion, and the researcher provided some significant areas for further research study. The market is structured depending on varied factors and variation that determine the market structure of a particular firm in an economy. Competition is one of the factors or conditions that determines the structure of a firm. The economists assume that there are many buyers and sellers in the marketplace; hence, they compete favorably for the available products in the market. Therefore, competition in the market contributes to changes of prices for commodities; thus creating a shift in demand and supply curve. Furthermore, there are substitute products in t he marketplace; thus, when one product increases the prices, consumers chose the alternative of consuming substitute products. The buyers and sellers have the ability to influence prices for commodities, and this contributes to increased competition in the market. ... The buyers and sellers may exchange property rights and everyone in the market interacts voluntarily in order to achieve self-interest. The buyers and sellers interact; thus, they signal much information about the product through product prices. Successful sellers reduce prices in order to influence buyers and out-compete their competitor (Mankiw 2011, 36). The sellers can maximize profits in case the price exceeds the products costs. Monopoly A monopoly refers to a market structure whereby only a single producer or buyer for a commodity exists. The monopoly firms are the price makers because they are single sellers in the market. Monopoly is a single business firm and it is characterized by varied features including market restrictions because of high costs and production of homogenous products. The government has powers to control or restrict entries into the market by creating barriers. The barrier to market entry may result because the firm may have exclusive rights of accessing the natural resources. For instance, the Kenya Power and Lighting Company is a monopolistic firm because the government takes control over the resources. The same case applies to Saudi Arabia oil industry because the Saudi government is the sole control of the natural oil reserves. The market also have a patent right that impede other competitors from entering into the market. The monopoly firm is classified into numerous features including perfect monopoly whereby the single seller does not have substitute products. Therefore, there is no perfect competition, but such firms are extremely rare. Another one is imperfect monopoly whereby the single seller does not have close substitute products meaning that the

MARKET RESEARCH Essay Example | Topics and Well Written Essays - 1500 words

MARKET RESEARCH - Essay Example â€Å"Different kinds of market research need to be conducted during different periods in the life cycle of a company and those of a product† (Hewitt, 2011). For a market oriented company like Kellogg’s, market research adds business value and improves the company’s competitive advantage. Before launching a new product, Kellogg’s usually conducts a market research to understand the preference of consumers concerning new products and this helps them to reduce the chances of failure. The major difference between qualitative and quantitative research are that the qualitative one is subjective and the quantitative one is mainly objective. Inductive method is used in qualitative while the deductive method is used in quantitative research. The qualitative research is text-based whereas the quantitative one is number-based. The method used under qualitative research involves focus groups and in-depth interviews while surveys and structured interviews are the meth ods adopted in quantitative research. Qualitative research focuses on smaller groups, on the other hand, the quantitative one deals with larger groups. The former one spends more time for selecting subjects, while the latter takes more time on data processing. The data collected using qualitative research is unstructured whereas quantitative research collects structured data. â€Å"Kellogg’s has flourished through skilful marketing of good products, and by creating and sustaining a highly valuable brand name† (Kellogg’s: Revitalizing a valued character, n.d). Kellogg’s company faces the problem of innovation when compared to other competitors. Further qualitative and quantitative research is necessary to know the consumer preference and to increase the demand for commodities. Competition from other companies can only be reduced by introducing new innovative products, which is possible through market research. The problem of substitute goods is faced by th e company, which can be tackled only through perfect knowledge about the market and this further increases the need for market research. To expand market internationally, the knowledge of foreign market is a must and so further qualitative and quantitative research is required. Section 2- Findings from marketing research: Critically analyze the 4 stages that Kellogg’s underwent in order to launch the new Crunchy Nut bites. Provide a critical analysis for each stage. Also provide 2 suggestions to improve Kellogg’s marketing research in this instance. Kellogg’s is concentrating on importance of market research during the launch and development of Crunchy Nut bites. Kellogg’s undertook four different stages of research in order to develop this new product. Stage 1: Discovery: Kellogg’s is a market oriented organization, wherein, market oriented means that the entire organization focuses on the needs of its customers. So, in order to find the needs of the customers, Kellogg’s has done a research to identify a set of new food ideas that would be appropriate for developing the new Crunchy Nut product. The company has also conducted secondary research to find out modern trends in the cereal market and to acknowledge new products, flavors and food from around the world. â€Å"Kellogg’s have a world-class food research and development facility, Kellogg’s food scientists, nutritionist and engineers turn wholesome grains and other