What is a Market structure?
In economics Market structure is the way the market is organized , based largely on the number of firms in the industry, number of buyers and levels of competition , for example Monopoly, oligopoly , Perfect Competition. Monopolistic competition is the market structure is the market structure I am going to base this assignment on.
Monopolistic Competition is a type of imperfect competition such that producers sell products that are differentiated from one another as goods but not as perfect substitutes, they differ in terms of brand, quality, and location. In monopolistic competition a firm takes the prices charged by its rivals as given and ignores the impact of its own prices of other firms.
Monopolistic competition has the following Characteristics:-
• There are many producers and consumers in the market and no company has total control over the market price.
• There are very barriers in the entry & exit of firms.
• Producers have a degree of control over prices.
• There is product differentiation.
• Independent decision making.
Examples of Monopolistic competition:-
Firms involving the selling toothpastes, soaps, electronics, and automobiles are examples of monopolistic competition.
ANALYSIS OF A COMPANY IN MONOPOLISTIC COMPETITION
Company name: MICROMAX
Micromax is a consumer Electronics Company found in 1991 and based in Gurgaon, Haryana, India. It focuses primarily on the sale of Mobile phones, LED televisions as well as tablets. It has 23 domestic offices as well as offices in Honk Kong, Dubai, USA and also employs over 1400 employees.Micromax is the 3rd largest handset manufacturer and the 12th largest manufacturer in the world. As of 2012 , Micromax leads the Indian tablet market with a share of 18.4% which is higher than even the likes of Apple and Samsung, it is also the 3rd largest mobile phone vendor in terms of volume. The company’s rapid market share growth since 2008 is primarily attributed to its aggressive low pricing and entry level segments of its products and its wide distribution setup.
ANALYSIS OF A PRODUCT FROM MICROMAX
Product name: MIcromax A116 Canvas HD
The Micromas A116 Canvas HD was launched at the start of January 2013 and is the latest Smartphone to be launched by MIcromax and is also their best phone yet and aims to rival even the best Smartphones of international companies like Samsung, and Micromax has sought to do this with aggressive low pricing.
Below are the specifications of the Micromax A116 HD
|Screen and Resolution |5” HD(1280X720 pixels) | |Camera |8MP with LED flash & front facing camera | |RAM |1 GB | |Operating system |Android 4.1 Jelly bean | |Memory storage |4 GB, expandable to 32 GB | |Processor |1.2 GHz quad core ARM cortex | |Battery |2,100 mAh Battery(approx 21 hours) |
The Micromax A116 Canvas HD has a plastic built and has a very powerful chipset and processor, and has no physical keys as it is a full touch screen. The Smartphone also comes with the latest operating system from Android which is Jellybean, the battery is a 2,100 mAh...