The decision of what the price for any given product or commodity should be made often has little to do with what it actually costs to produce and distribute a particular product. Fixed costs such as these are invariably influenced by the surrounding market structure in which the enterprise must operate. An evaluation must be made concerning what effect competitors will exert upon the market in which the firm operates. This becomes at least as important as any material production costs. Different strategies must be depending upon how other sellers are likely to react and what effect these sellers are able to exert upon the particular firm in question. The ability to shape the marketplace is an essential characteristic underscoring any market strategy, even as the rival firms try to do the same. It is necessary to cultivate an understanding of what effect the target firm's choices will have on the market place and how this interplay controls the behavior of other sellers, if any influence is meaningful (Samuelson & Marks, 2012) Depending on the political and economic environments in which the target firm finds itself, there is the possibility that other firms are effectively invisible, or remain so powerful that no plausible action can change the market. Relative to the status and assets of the target firm, other competitors may prove to be so small that their behavior has no discernible impact on the larger marketplace in which the target firm operates. In this case, it is possible to adjust prices in order to capitalize on opportunities to deliver the product or service in question – with concern only for what the law and buyer can pay. The other possibility is a setting, in which competing firms exist, that are so large and powerful relative to the target company that virtually no pricing decision will change the fundamental forces of supply and demand within the economic theater. This constitutes the reverse of the previous situation, and short-term opportunities should be considered in this case, resulting in a different strategic environment with respect to pricing decisions. The interplay can become especially complicated in the third environment, in which the other sellers delivering the commodity in question are of approximately equal size to the target firm and are, therefore, influential and influenced by one another. Each company must be concerned only partially with real costs in terms of the physical delivery of goods and services, but must instead constrain oneself based on the behavior of competitors of equal size. In this case, physical production costs may have renewed importance because the firm capable of reducing them can command an obvious advantage over its rivals. Yet such gains may be temporary as this will prompt competing operations into a drive of innovative cost-cutting, which in a competitive marketplace is likely to be ongoing. The interaction of supply and demand colors each of these scenarios. A rival firm exponentially larger than a given target firm has the potential to be much more competitive. If the disparity is too great, even if the target firm is able to deliver a commodity at a lower price, it would not be able to meet the demand already supplied by the much larger firm. Here is a problem of "getting a foot in the door," and regardless of
Analysis of Market Structures and Relating Pricing Strategies 2. Abstract The four principal categories of market structure of relevance in the financial world, both presently and historically, are investigated. Theoretical explorations of perfect market conditions are contrasted with monopolies and monopolistic competition…
In essence hotels ought to set their rates according to demand factors. Pricing remains an elemental factor that influences revenue streams in the hotel industry. Studies carried out in the recent past was concerned with competitive pricing as concerned with changes in prices between hotels and their direct competition.
Forensic science is a way that experts examine facts related to a case to provide evidence that can be used to solve the crime and identify the real person/persons responsible for committing the crime at hand. Forensic science includes the use of fingerprints, DNA and trace evidence to compile relevant evidence for the prosecution of crimes, mainly crimes relating to murder (Houck & Siegel ix).
Whittaker Memorial Hospital. Case Analysis. The problems relating to accounting and administrative functions ultimately led towards deteriorated financial position of Whittaker Memorial Hospital. Consequently, the hospital was renamed to Newport News General Hospital in order to develop its various medical facilities and services.
Like numerous other farmers and small business owners, the individuals depicted in the story try to sell their produce. They enter into economic transactions at several instances. The examples of the market structures from the story would be pointed out and explained comprehensively.
Start up businesses as well as established ones are able to leverage on the different opportunities because of their ability to have proper analysis of their financial and pricing status. This paper presents the financial and pricing structure for Off 2 Gran Grans, a company that offers services to the elderly people.
Tiger Airways was incorporated in 2003 and started its full operations in 2005. It operates flights in more than eight countries and its flights ply more than nineteen destinations (Chitty, 2011). Tiger Airways is actually made up of a group of airlines that are largely specialize in passenger transportation.
According to the report pricing strategy is the task of the top management with the help of middle level and low level management. This is done by analyzing the local and the international market, clear method of analyzing the conditions where a successful marketing can be carried out. Pricing is the process of influential decision.
c began; the third is breast cancer where the black/white disparity in breast cancer mortality was identified as higher the country’s average; the fourth is teen pregnancy also seen to be very high surpassing the other cities and even the entire country. Other problems that
The paper aims to give salient and very sound examples of pure competition and monopolistic competition from this novel.
This is also known as perfect competition. It is a situation where there are many consumers and producers in the market for a
4 pages (1000 words)Research Paper
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