Case Study : Hospitality And Tourism Management

An oligopoly is a market structure in which a few firms or producers dominate, with each recognizing their interdependence. Under perfect competition or monopolistic competition, there are many firms in the industry. Each firm can ignore the effects of its own actions on rival firms. However, the key to an oligopolistic industry is the need for each firm to consider how its own actions affect the decisions of its relatively few competitors. In an oligopolistic market structure, the consideration of pricing behaviour and actions of one firm to its rival firms is of

1) An Oligopolistic market structure is a structure where very few large businesses sell a particular standard Good or differentiated Good, and to whose market entry proves difficult. This in turn, gives little control over product pricing because of mutual interdependence (with the exception of collusion among businesses) creating a non-price competition meaning they are the ‘price setters’. A good rule to help classify an

There are four types of market structures: Monopolistic Competition, Monopoly, Oligopoly, and Perfect Competition. Monopolistic Competition is also known as competitive market. In this market structure, there are a large number of firms that produce similar but somewhat differentiated products for the same target customers. The market share is also divided among large number of firms making it difficult for one firm to become the market leader. On the other hand, Monopoly is a type of market structure in which only one firm controls the whole industry. There are strict barriers to entry for new firms due to governmental restrictions or the monopolistic power of the firm itself. In Oligopoly, the whole industry is dominated by a few large scale firms that set prices, introduce innovative products, and use heavy campaigns to attract buyers. All other small scale firms follow the changing market patterns set by these oligopolistic firms. Lastly, perfect competition is a market structure in which there are a larger number of firms that produce similar as well as differentiated products for

E., & Gould, J. P., 1966). Furthermore, the members are price takers and do not have the power to influence price changes. We now understand that perfectly competitive markets are very rare and that in reality our product exists in a different type of market. The four types of markets are: Monopoly, Oligopoly, Monopolistic competition, and perfect competition. Our company has gained enough power in the market to influence price and allow it to choose its own optimal price. This means that establishing an equilibrium where QD = QS does not necessarily apply. Perhaps our company has developed an innovation that makes the quality of our microwave meal much better than our competitors or we have developed a process than drastically lowers the cost of processing the ingredients for our product. Regardless of the reason, our company now has a competitive advantage and we must take advantage of it in order to become dominant in our industry.

Desert Hotel accepted the contract proposed for invoice of 1000 units of kits for $700 per kit plus freight for payment at 60 days of maturity with LC and international sales contract. The shipment from your manufacturing facility in Indiana will transport kits to NY in a week and from NY, the ship will embark on its journey to Cancun and deliver in 4 weeks.

A market is defined as an institution that brings together buyers (demanders) and sellers (suppliers) of a particular good or service. A Market structure is the relationship among the buyers and sellers of a market and how prices are determined through outside influences. There are four different types of market structures. Two on opposite extremes, and two comfortably in the middle. On one end is perfect competition, which acts as a starting point in price and output determination. Pure competition is when a large number of firms sell a standardized product, entry and exit is very easy, and an individual firm cannot control the price. On the other extreme end is Pure monopoly. A monopoly is characterized by an absence of competition, which will often allow one seller to control the market. A Pure monopoly is essentially the same thing, but also includes near impossible entry and no substitute goods. Two more common market structures are monopolistic competition and oligopoly. Monopolistic competition has a large number of sellers producing different products, while an oligopoly has only a few number of sellers producing similar products. All in all pure competition, pure monopoly, monopolistic competition, and oligopoly are all unique market structures with differing characteristics, but have one main goal, profit maximization.

A monopoly exists when an organization produces and sells a good or services for which there are no close substitutes and other organizations are prevented by some type of entry barrier from entering the market (Thomas & Maurice, 2010). The entry or potential entry of a new organization into a market can gradually destroy the market power of existing organizations by increasing the number of substitutes (Thomas & Maurice, 2010). Therefore, an organization can have a high degree of market power only when strong barriers to the entry of new organizations exist (Thomas & Maurice, 2010). A strong barrier of entry exists when a new organization has difficulty entering a market were existing organizations are making a profit (Thomas & Maurice, 2010).

What is a monopoly? According to Webster's dictionary, a monopoly is "the exclusive control of a commodity or service in a given market.” Such power in the hands of a few is harmful to the public and individuals because it minimizes, if not eliminates normal competition in a given market and creates undesirable price controls. This, in turn, undermines individual enterprise and causes markets to crumble. In this paper, we will present several aspects of monopolies, including unfair competition, price control, and horizontal, vertical, and conglomerate mergers.

When a product is produced, the company that produces that particular product falls into one of four categories: pure competition, monopolistic competition, oligopoly, and monopoly. Depending on how many companies are producing a product determines what market structure the company is labeled. Each category determines how a company will use pricing and non-pricing to advance in the economy. The United States economic market is competitive with various buyers and sellers, and each company is constantly looking for ways to be better than its neighbor. The following examples of each category will show different companies and how they use pricing and non-pricing to advance to

The monopoly market structure, as well as any other market structure, will most often set prices that yield the highest profit. As the sole providers of a product and/or service, monopolies have no competition and no price restrictions but what must be understood, is the difference between “market power” and “monopoly power” which are related but not the same. “The Supreme Court has defined market power as “the ability to raise prices above those that would be charged in a competitive market,” and monopoly power as “the power to control prices or exclude competition.”

The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)

Competition within the industry as well as market supply and demand conditions set the price of products sold.

As a student, technology is an excellent source of information. This research gives us knowledge about the advantages and disadvantages of technology in hospitality management, this helps me in my other subjects especially I’m a student of Hospitality Management course. I learned from my research that technology doesn’t always have positive effect but it also have it’s negative effects, technology is suitable for hospitality management because it is the easiest way to socialize through internet. I think this will further enhance the hospitality management few years from now.

The determination of prices of commodities depends upon the type of market structure in which they are produced. There are various markets prevailing in an economy like (a) perfect competition, (b)Monopoly,(c) Monopolistic Competition, and (d) Oligopoly. Monopoly, monopolistic competition and oligopoly are generally grouped under imperfect competition, since these three markets differ in respect to the degree of imperfections in the market.

b) In a monopolistic competition structure, although there are numerous firms, they carry different products. Due to product differentiation, each company is able to somewhat control their own pricing.