Market Structures

4108 Words Oct 23rd, 2007 17 Pages
RUNNING HEAD: MARKET STRUCTURES

Market Structures
University of Phoenix

Market Structures
In this paper, we will discuss the four market structures of Monopoly, Oligopoly, Monopolistic Competition and Pure Competition. We have identified four companies that operate in each of these market structures: Salt River Project, The Coca Cola Company, Russ 's Market, and Columbia House. In each market structure we will describe the pricing and non-pricing strategies of the companies operating in that market. We will also examine Quasar, a notebook computer company. They entered the market with a new product and we will explain the progress from one market segment to the next as the lifecycle of the product changes and the number of
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Therefore, the oligopolistic firm has little to gain from utilizing pricing strategies that results in rigid or inflexible prices. Oligopolistic firms rely on non-pricing strategies of competition such as advertising, product differentiation, and barriers to entry. The goal for oligopolies is to increase market share while keeping price constant. The Coca-Cola Company is the global leader for carbonated soft drinks (Carbonated Soft Drinks Industry Profile: United States, 2005). In 2004, Coca-Cola had a 44% volume of the U.S. market, PepsiCo, Inc. had a 31.1% share, Cadbury Schweppes p/c had 15.2% (Carbonated Soft Drinks Industry Profile: United States, 2005). The Coca-Cola Company, PepsiCo, Inc. and Cadbury Schweppes p/c hold 90.3% market share of carbonated soft drink (CSD) sales in the U.S. while private label brands have only 0.4% share of the market (Carbonated Soft Drinks Industry Profile: United States, 2005). The Coca-Cola Company, Inc. exhibits oligopolistic characteristics whereby it is the largest of three oligopolistic CSD companies in the U.S. market, offers differentiated carbonated soft drink products, controls price with mutual interdependence, limits barriers to entry by significant brand recognition and trademarks and has a high concentration ratio of 44%. Pricing strategies for Coca-Cola and the other CSD oligopoly firms, as stated above,
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