Essay Phone Industry Analysis falls to Oligopoly Structure

Oligopolistic markets, such as supermarkets or car manufacturing, can be defined in terms of market structure or in terms of market conduct.

For this assignment on the four industries, I have picked Verizon. Verizon, is based in New York City and incorporated in Delaware, it was formed on June 30, 2000. It was born with the merger of Bell Atlantic Corp. and GTE Corp. Verizon is part of the Oligopoly industry. They share the market with business like Sprint, AT&T and T-Mobile. This means that Verizon is part of a dominated business group that controls 70-80% of the cellular market. It also means that being in an oligopoly industry it’s hard for “new” firms to enter this industry and be successful.

Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry.

Market structure is the physical characteristics of the market within which companies react. This means that there are different kinds of market structure based on how companies work together within a particular industry. Location and product have the most to do with determining the market structure. There are four defined market types. The first market structure is called the perfectly competitive market. The second market is called a monopoly market structure. The third market is called monopolistic competition market structure. The final market is called oligopoly market structure. Each market structure is different and both benefits and disadvantages

(Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry

Market Structure: Meaning, Characteristics and Forms | Economics. (2014). YourArticleLibrary.com: The Next Generation Library. Retrieved 25 April 2016, from http://www.yourarticlelibrary.com/economics/market/market-structure-meaning-characteristics-and-forms-economics/28736/

A market is defined as an institution that brings together buyers (demanders) and sellers (suppliers) of a particular good or service. A Market structure is the relationship among the buyers and sellers of a market and how prices are determined through outside influences. There are four different types of market structures. Two on opposite extremes, and two comfortably in the middle. On one end is perfect competition, which acts as a starting point in price and output determination. Pure competition is when a large number of firms sell a standardized product, entry and exit is very easy, and an individual firm cannot control the price. On the other extreme end is Pure monopoly. A monopoly is characterized by an absence of competition, which will often allow one seller to control the market. A Pure monopoly is essentially the same thing, but also includes near impossible entry and no substitute goods. Two more common market structures are monopolistic competition and oligopoly. Monopolistic competition has a large number of sellers producing different products, while an oligopoly has only a few number of sellers producing similar products. All in all pure competition, pure monopoly, monopolistic competition, and oligopoly are all unique market structures with differing characteristics, but have one main goal, profit maximization.

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

The major market structures that impact our current economy are perfect competition, monopolistic competition, oligopoly, and monopoly.

An oligopoly describes a market situation in which there are limited or few sellers. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. This can cause a type of chain reaction in a market situation. In the world market there are oligopolies in steel production, automobiles, semi-conductor manufacturing, cigarettes, cereals, and also in telecommunications.

The device commonly regarded as the first to realise widespread success in the smartphone market was the Blackberry. However the handset, referred to as the ‘crackberry’ (Middleton, 2007) after the feeling of addiction many users felt towards it, was quickly joined in the market by companies such as Apple and Samsung. The intriguing market seems to be constantly evolving and is still an emerging market subject to multiple market forces. Many economic theories can be applied to this market including Monopolistic Competition, Platform Competition along with Network Effects and Tipping Points. The market has seen the evolution of smartphones from a keyboard based device with closed operating systems into thin, touch

Monopolistically competitive markets are those that involve industries such as clothing, eateries, footwear, as well as in the service area. A monopolistically competitive market can be characterized as having an abundant amount of both manufacturers and consumers, consumer’s preferences for purchasing is known; survival in this area consists of the seller trying to distinguish specific products from competitors. A monopolistically competitive market could

Market structures are classified with regards to the competition – either their presence or absence. There are different types of market structures: perfect competition, monopolistic competition, oligopoly and monopoly. The characteristics of the product or service and the number of suppliers determine the market structure. This report will mainly focus on oligopoly market structure.

monopoly, monopolistic competition, and oligopoly. In a perfect competition, there are several businesses that are present which all produce the same products and services and they are all sold at market price. To enter this market, the obstacles are relatively low and the only element that determines sales is price of the product or service.

The Porter’s Five Forces tool is a simple but powerful tool for understanding where the power lies in a business situation. It is helpful because it helps in the business assessment trying to understand the strengths of the current competitive position and the strengths of a position that the business is considering moving into (MindTools, 2017). With a clear understanding of the business power towards its suppliers, customers and other competitors, make it easier and outstanding to make the appropriate business decisions.