Workshop2

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Indiana Wesleyan University, Marion *

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510

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Communications

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Jan 9, 2024

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docx

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Uploaded by DukeLobster1255

Firm # 1 Firm # 2 Firm # 3 Firm # 4 Firm name John Deere Chick-Fil-A Duke Energy Facebook Number of firms competing with each other? Few Many Few Few Nature of the product? Differentiated Undifferentiated Undifferentiated Differentiated Entry into the market? Moderate Low Many Low Availability of information to market participants? Public Public Public Limited Firm’s control over pricing Moderate Low High Moderate Type of market structure Oligopoly Monopolistic Monopoly Oligopoly An oligopoly market structure has few competitors but they do compete with one another. This competition keeps the pricing competitive and the marketing strategies are very important to ensure a company can survive. A competitive monopolistic marketing structure has a lot of competitors in the industry but the products are not identical. This allows the businesses to differentiate their products from the competition and gain market share. Contrary to a monopolistic competition, a monopoly is when one business offers a product or service with no competition from other sellers within a market. This allows one business total control. A perfect competition marketing structure is an idealistic version of a utopian market where no competitor has more control than the other and all products and services are equal.

John Deere is a good example of an oligopoly market structure. There are a few competitors in the industry of heavy equipment. The barriers that new businesses face can be daunting in this industry so it keeps the number of businesses low. Although the businesses that choose to operate in this industry provide fierce competition but through good branding and marketing John Deere can have some control over the pricing of their products. John Deere has a differentiated product because they have set themselves apart from the competition by customizing their products and offering many models to the consumer. Chick-Fil-A has an undifferentiated product because they appeal to a large market and do not customize their products to the individual. There are many different competitors in the fast food market and this is why Chick-Fil-A has very little pricing control. There are simply too many substitutes in the market for them to remain competitive with a higher price. They operate in a monopolistic market structure because there are many competitors but the products are not identical. Chick- Fil-A has their own seasonings and sauces to set themselves apart from the competition. Duke Energy is a great example of a monopoly type structure. They have total control over the market and there is no substitute. There are many barriers to entering the market which makes new competition difficult. They have total control over the pricing but there is some government intervention when pricing is concerned. Lastly, Facebook is another example of an oligopoly market structure. There are few competitors but they do compete in order to provide the best service to the consumer. There are few barriers to entry but there is limited ways to make a profit from these types of businesses so the number of offerings is low. The service Facebook offers is differentiated. The company uses personalized ads that are specifically designed for the individual user. References

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