online shopping
Task 1: explain how market structures would determine the pricing and output decisions of twinnings.
Market structure: The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market. There are some determents of market structure which are
The level of entry and exit barriers
Identity of products
Control of prices
Anonymous A (2012)
Perfect competition: if a market structure has these points described its perfect competition:
Free entry and exit to market
Homogenous products
Number of buyers and sellers Information about seller and buyers.
In this type of strategy the twinning’s have to watch the competitors. If they reduce or increase their prices then twinning’s also have to do same like others.
Duopoly: in this type of marketing structure the industry is dominated by two firms like the apple and Microsoft. In this case the twinning’s has to compete with their competitor. If the other one reduce the price this organisation have to reduce price. If its looking the brands then it have to give good quality and interest some more money to the brand to give it good name so other one not compete with it.
Monopoly: A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. Monopoly is characterized by an absence of competition, which often results in high prices and inferior products. In this strategy there is only twinning’s in the market so they have to produce the good brand so the any other competitor not to be competing with it.
Oligopoly: An oligopoly is a market form in which a market or industry is dominated by a small number of sellers. Because there is small number of sellers so its competitors are not too much in the market but some competitors they are too strong to compete with
Market structure: The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market. There are some determents of market structure which are
The level of entry and exit barriers
Identity of products
Control of prices
Anonymous A (2012)
Perfect competition: if a market structure has these points described its perfect competition:
Free entry and exit to market
Homogenous products
Number of buyers and sellers Information about seller and buyers.
In this type of strategy the twinning’s have to watch the competitors. If they reduce or increase their prices then twinning’s also have to do same like others.
Duopoly: in this type of marketing structure the industry is dominated by two firms like the apple and Microsoft. In this case the twinning’s has to compete with their competitor. If the other one reduce the price this organisation have to reduce price. If its looking the brands then it have to give good quality and interest some more money to the brand to give it good name so other one not compete with it.
Monopoly: A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. Monopoly is characterized by an absence of competition, which often results in high prices and inferior products. In this strategy there is only twinning’s in the market so they have to produce the good brand so the any other competitor not to be competing with it.
Oligopoly: An oligopoly is a market form in which a market or industry is dominated by a small number of sellers. Because there is small number of sellers so its competitors are not too much in the market but some competitors they are too strong to compete with
References: Anonymous A: Marketing structure. Available: http://www.businessdictionary.com/definition/market-structure.html. Last accessed 30 April 2013. Anonymous B. (2012). Perfect competition. Available: http://www.tutor2u.net/economics/content/topics/competition/competition.htm. Last accessed 20th Nov 2012. Michael E. Porter (1980). Competitive strategy: techniques for analyzing industries and competitors. Free press. 6-35. Anonymous D. (2012). Twinning 's behavior. Available: http://twinings.co.uk/benefit-blend-infusions. Last accessed 21st Nov 2012. Anonymous E. (2010). International trade. Available: http://www.economywatch.com/international-trade/benefit.html. Last accessed 22nd Nov 2012. Justin Paul (2008) Business environment. 2nd ed. London: oxford university press. BBC (2012). UK coffee culture. Available: http://www.bbc.co.uk/news/uk-wales-mid-wales-19982128. Last accessed 3rd May 2013.