Market Structures - 4108 Words

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†¦show more content†¦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,Show MoreRelatedMarket Structure Of The Company Essay1088 Words   |  5 PagesMarket Structure Introduction There are four types of market structures and they are monopoly, perfect competition, monopolistic competition, and oligopoly. What is a market structure? A market structure is â€Å"the makeup of the companies operating in a particular market.† Why is the market structure important to the producer as well as the consumer? It distinguishes the difference in seller numbers, buyer numbers, seller entry barriers, and buyer entry barriers. 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