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Assistant Manager Essay

767 words - 4 pages

University of Phoenix Material

Differentiating Between Market Structures Table

Compare the four market structures by filling in the table.

| |Perfect competition |Monopoly |Monopolistic competition |Oligopoly |
|Example organization |Kudler Fine Foods Virtual Organization |Apple Incorporated |Coca Cola / Pepsi |Verizon Wireless |
|Goods or services produced by the |Homogenous |Limited |Limited ...view middle of the document...

There are many obvious differences when considering the four market structures: Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly. Perfect competition occurs when there are multiple, small businesses competing with one another, which is why the cost per unit is at a minimal level. Kudler Fine Foods Virtual Organization falls underneath this category. As for a monopoly, this occurs when there are no competitors in the industry, causing the cost per unit to be at a maximum level. Apple Incorporated is classified as a monopoly since their products are non-replicable and unique to the organization. Similarly, monopolistic competition is the result of many firms within the industry that compete with very similar, but not quite the exact same product. Although the cost per unit is on a higher level, consumers tend to benefit from the different products and services available. Coca Cola and Pepsi are a perfect example of this since they are not only competitors but substitutes, as well. Lastly, an oligopoly is very similar to a monopoly in the sense that a firm’s direct competitors can decrease supply and increase prices, which inevitably affects other firms in the industry. In effect, the organizations who fall under the Oligopoly structure tend to compete only against one another. Verizon Wireless is an organization classified as an oligopoly since there are not too many successful competitors in the marketplace, but just enough for product differentiation and consistent competition.
I have put together a simple SWOT analysis to further analyze Kudler Fine Food Virtual Organization’s strengths, weaknesses, opportunities, and threats.

A. Strengths

1. Kudler Fine Food is a well-known organization attracting a variety of demographic groups including healthier eaters, culinary students, and those who continually partake in gourmet cooking.

2. Kudler has made it simple to order the freshest ingredients, in addition to the tools used to create gourmet meals.

3. With three successful California locations, this company distributes to both Canada and the United States of America.

B. Weaknesses...

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