Differentiating Between Market Structures

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Differeantiating Between Market Structures Identify the market structure in which this organization competes. Clearly indicate why the market structure was decided upon and how this market structure differentiates from the other alternatives. MARKET STRUCTURE The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market (“Market Structure”, 2016). There are four basic types of market structure: Perfect competition, oligopoly, monopoly, and monopsony. McDonald’s is one of the leading companies in the fast food industry…show more content…
The reduced cost of purchasing inputs increases their profit margins (Riley, 2011). Another additional advatage would be the improved value of money. McDonald’s would use their bargaining power to drive down the prices for beef, which would then open the price up for more consumers to buy from the company. COMPETITIVE STRATEGIES Dominating the industry is the key at McDonald’s. We do not want to simply have a sizeable sum in the industry, we want it all. There are several competitive strategies that could be used to maximize the profits over the long run. One effective straegy that is used is the speed of service at all location worldwide. In order to make this possible, the process has to simplified and mastered from the cooking of the product to the order taking from the employee. Simple to learn and easy to execute has been a moto used quite frequently in ther restaurants. This has led to an extremely low failure rate. Another competitive strategy would be the low price of our food. Being the cost leaders in the industry is what sets us apart from our competitors. In order to make this happen, the store must be efficent in its day to day operations while keeping food costs down. Our third strategy that will be talked about is the scale of McDonald’s. The best way of advertisement is word of mouth. How do you get people to talk about McDonald’s? How about putting over 30,000 units around the
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