Market Structure
- Monopolistic Competitive structure
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- Notably, Google company has the characters of a perfect and a monopoly market structure. In relation to a perfect competition market structure, Google is different in the allocation and product efficiency. Here, a perfect market has many sellers with the same products that all produced under a standard method. In addition, the firms in a perfect competitive structure have information about the market as well as the price. On the other hand, monopolistic competition sells products that are different in quality and quantity. Because of fewer barriers in the market entry and exit is easy. Brand and quality are the primary basis of a monopolistic structure based on product differentiation. Google can increase prices of advertisements, a factor that is difficult in a perfectly competitive market structure.
- Oligopoly Market Structure
- Soft Drinks Companies (Coca-Cola and Pepsi)
- Firstly, oligopoly consists of more than one company as compared to monopoly, which is one company controlling product, prices and availability in the market. Coco-Cola being part of an oligopoly market structure, produces differentiated products. The competition between the companies that provide the drink primarily depend on the marketing strategy. The monopoly company derive its power from the fact that it is virtually the sole product or seller in an industry, while oligopoly’s power is from the ability of the few firms to control prices and production. On that note, the monopoly may quote a high price because of lack of competition while the oligopoly market ensures a fair price which retains a competitive environment. Therefore Coca-Cola may be affected if the Pepsi changes either the prices or quality of the products.