Market Structures in Manufactruing Business

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1.0 INTRODUCTION………………………………………………………………….2
1.1OBJECTIVES OF THE REPORT……………………………………...…2

2.0 APPAREL INDUSTRY IN SRI LANKA…………………………………………2

3.0 INTRODUCTION TO ECONOMIC MARKET STRUCTURES………………3 3.1 MONOPOLY……………………………………………………………….3 3.2 MONOPOLISTIC COMPETITION…………………………………...…3 3.3 PERFECT COMPETITION………………………………………………4 3.4 OLIGOPOLY………………………………………………………………4

4.0 MAS HOLDINGS (PVT) LTD…………………………………………………….4
4.1 CHALLENGES……………………………………………………………..5
4.3 MARKETING CHANNELS……………………………………………….5

5.0 KEY FEATURES OF THE INDUSTRY…………………………………………..6
5.1 FIRMS IN THE INDUSTRY……………………………………………….6
5.2 ENTRY” AND “EXIT” BARRIERS IN PLACE………………………….6
5.3 PRODUCTS AND TECHNOLOGY OFFERED………………………….7
5.4 COST AND PROFIT STRUCTURES……………………………………...8
5.5 BUSINESS STRATEGIES ………………………………………………….9 6.0 CONCLUSION……………………………………………………………………..10

7.0 REFERENCES AND BIBLIOGRAPHY ………………………………………...11

1.0 INTRODUCTION:

This report identifies the nature of the Economic market structure in which an organization operating in the Sri Lankan Apparel industry and its significant features.

MAS Intimates (Pvt) Ltd. has been selected as the subject for observations carried out for the purpose of this report.

1.1OBJECTIVES OF THE REPORT:

▪ Identifying the relevant market structure for MAS Intimates in the context of being a manufacturing firm operating in the Apparel Industry (Intimates) of Sri Lanka.

▪ Determining the market structure in terms of
• Firms in the industry

• “Entry” and “Exit” barriers in place

• Products and Technology offered

• Cost and profit structures

• Business Strategies

▪ Understanding the strategies that can be or already are in place to efficiently operate in that market

2.0 APPAREL INDUSTRY IN SRI LANKA:

The Apparel industry is the leading industrial sub-sector accounting for 67 % of total export income in Sri Lanka. The importance of the industry emerged subsequent to export orientation of the local economy with the introduction of open economic policies in 1977. Since then, the industry’s contribution to economic and human development has been significant. In the recent past, Sri Lanka has shifted the focus of its apparel industry to being more “Intimate” Apparel oriented and MAS Intimates and Brandix Essentials are the only two major players specializing in the design and manufacturing of such products in Sri Lanka. There are a few small scale firms which manufacture intimate apparel; however their contribution to the industry as a total is not significant.

3.0 INTRODUCTION TO ECONOMIC MARKET STRUCTURES

In the context of economics, there are four main market structures in which firms operate in. These market structures are determined based on criteria such as the number of firms in the industry, nature of competition and products as mentioned above. The four main market structures are;

• Monopoly

• Monopolistic Competition

• Perfect Competition

• Oligopoly

3.1 MONOPOLY

A market monopoly occurs where there exists on one firm which produces and is the extreme opposite to Perfect Competition as the firm in Monopoly would be the price “setter” as opposed to being price “takers” in the context of Perfect Competition.

3.2 MONOPOLISTIC COMPETITION

There are many firms in this type of market, but not enough to maintain perfect competition levels. There is differentiation in the products offered and are usually branded. This type of market is not completely price driven as the reduction in price of one firm will not result in the customers of the other firm moving to the first.

3.3 PERFECT COMPETITION

Perfect competition occurs where there are...
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