Perfect Competition vs Monopoly

1378 WordsNov 13, 20106 Pages
M&S (perfect competition) Vs Thames Water (monopoly) At one end is perfect competition where there are very many firms competing against each other. Every firm is so tiny in relation to the entire trade that has no power to manipulate price. It is a ‘price taker’. At the other end is monopoly, where there is just a single firm in the industry, and for this reason no competition from inside the industry. Perfect competition e.g. Marks & Spencer, they have many competitors such as, Asda, Next and Tesco. They productively have over 600 UK stores, in addition expanding international business. They employ over 75,000 people in the UK and abroad. On the whole, their clothing and homeware sales account for 49% of their business. The other…show more content…
Both M&S and Thames Water face different types of market surroundings. Thames Water will generate a quite diverse output and at a fairly diverse price from M&S type of industry. M&S complete continued existence in the long run makes use of the most well-organized and efficient known technique, and develops new techniques anywhere possible. For example, Plan A. Plan A is Marks & Spencer’s five-year, 100-point 'eco ' plan to tackle some of the biggest challenges facing their business and the world. It will see them working with their customers and suppliers to combat climate change, reduce waste, safeguard natural resources, trade ethically and build a healthier nation. Altogether, they have cut down on food carrier bags by 80% - helping to reduce plastic waste. This helped raise half a million pounds for charity. Even though, Thames Water, protected by barriers to entry, be able to still create big profits even if it is not using the most efficient system. It has less motivation, therefore, to be efficient. For this motive, costs may be privileged under Thames Water. On the other hand, Thames Water may be bright to achieve considerable economies of scale due to larger plant, centralised management and the prevention of pointless repetition. Thames Water eradicates the want for numerous sets of rival water mains under each street. If this
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