Operations Decision On Market Structure, Leading Competitors

Market StructureNameInstitutional AffiliationDate Market Structure
A market structure in economics refers to the different attributes of a market. There are different aspects that a person looks at when they are analyzing the market structure. You need to have an understanding of the characteristics of the buyers and the sellers. Competition is also one of the most important aspects that you need to look at. The competition will enable you to come up with research methods that will enable you to defeat your competitor. It will also enable you to come up with appropriate product differentiation measures to ensure that you can provide your products differently than your competitor CITATION Pet10 \l 1033 (Peter & Jeffrey, 2010). Over a given period, the number of the buyers of your commodities may increase, and you need to take that into consideration so that you can know the type of the market structure that you are supposed to adopt. The two main attributes of the market structure are easy of entry into the market and the exit from the market.
There are four different kinds of market structures; perfect competition, oligopoly, monopoly, monopsony. Perfect competition is based on five main aspects. All the firms in the structure sell an identical product. The firms are only the price takers, and as such, they cannot control the market price of their product. Another aspect is that all the firms have a relatively small market share. Lastly, the buyers have complete information about the product that is produced by a firm. As illustrated by the above aspects, in perfect competition, the buyers and sellers engage themselves in business without the ability to control the prices.
In oligopoly market structure, a large number of sellers have established some control over the prices of the commodities. There are various characteristics of oligopoly market structure. One of them is that it is in a given industry, you will find it dominated by some large firms. Secondly, the firms can sell products that are either identical or differentiated in a way. Thirdly, the industry has significant barriers to its entry. In monopoly market structure, one firm prevails a given industry. Monopoly power exists when a single firm controls 25% or more of a particular market CITATION Sin14 \l 1033 (Singhal & Kulkarni, 2014). For instance, De Beers is a company that is known to have a monopoly in the diamond industry. In some instances, a monopoly can occur naturally due to the existence of natural advantages such as strategic location or abundant of mineral resources in the place of location of an industry. Monopsony refers to a situation where one buyer exercises control over the demand for a product and finally over the price of the product. A\common example of monopsony is Ernest and Julio Gallo who is a company that has specialized in the production of wineries and wines. The company is so large, and it has much power in buying grapes from the growers to the extent that the sellers have no choice but to agree to the terms offered by the company.
Market Structure in the Low-Calorie Frozen Microwavable Food Industry
From the above market structures, we can be able to establish that the market structure in which the low calorie frozen food...