The Low Calorie Frozen Microwavable Industry Essay

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Javan Gill Assignment 2: Operations Decision ECO 550 Dr. Bernadette West November 14, 2016 Market Structure The low-calorie frozen microwavable industry appears to function under a monopolistic competition market structure. Having, “a few dominant firms and a large number of competitive fringe firms” is one of the main factors that make a market monopolistic competition (Mcguigan, Moyer, & Harris, 2014, p352). In this category of market structure the initial thing that should be done to evaluate the efficiency is to determine the alternatives to the diverse products. In this instance the products should be close, but not perfect replacements for each other. In the low-calorie foods industry there will always be related substitutions because it is centered on what an individual person craves and what they choose to consume. Next, company’s needs to explore what challenges lay ahead for the business to enter the market. If there are obvious obstacles that have no quick alternatives then there may be a different market structure. Finally, the company should inspect the prices and the size of its competitors. Prices fluctuate in this market, but still seems to have an unlimited capacity for low-calorie frozen microwaveable meals. The ultimate desire for each company is to have reasonable prices that will make consumers want to continuously buy its merchandises over others, but there is not one definite company that is setting the price. This is an indication
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