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Differentiating Between Market Structures Essay Sample

Differentiating Between Market Structures Pages
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Market Structures
Perfect Competition
Oligopoly
Monopoly
Monopsony

Perfect Competition
Identical Products sold
Cant control market price of their products
All have a small market share
Buyers have all information on the items being sold and what is being charged
Characterized by freedom of entry and exit

Oligopoly
Like a Monopoly

Controlled by a small group of firms

My group falls in this category

Monopoly
Absence of competition
High Prices, inferior Products
Single company owns market
Usually company is forced to split up or get shut down

Monopsony
Buyers Monopoly

Buyer owned not owned by the seller

Buyer drives prices down

Verizon Wireless
Oligopoly

Provides multiple services

Could use multiple Competitive Strategies

4 Competitive Strategies
Cost Leadership
Differentiation
Low cost Focus
Differentiation Focus

Cost Leadership
Employed by Large Companies
Cheap
Difficult to compete with
Not useable by the small companies

Differentiation
Unique product or services
Usually something that isn’t easy to replicate
Requires a lot of research and development
Have to make sure that it isnt able be imitated easily

Low Cost Focus
Similar to Cost Leadership
Focuses on a niche market
Only marketed to a specific Segment
Then to be the cheapest in that segment

Differentiation Focus
Similar to the Low Cost Focus
Focuses on a specific segment
Not trying to be the cheapest but marketed in a unique way
Could Require a fewer amount of resources.

References

Arbuckle, D. (n.d.). What Are the Four Major Types of

Competitive Strategies? Retrieved July 27, 2015,
from http://yourbusiness.azcentral.com/four-majortypes-competitive-strategies-6166.html Monopoly Definition | Investopedia. (2003,
November 24). Retrieved July 27, 2015.
Monopsony Definition | Investopedia. (2003,
November 24). Retrieved July 27, 2015.
Oligopoly Definition | Investopedia. (2003, November
24). Retrieved July 27, 2015.
Perfect Competition Definition | Investopedia. (2003,
November 24). Retrieved July 27, 2015.

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