Using the results from this survey as a guide, steps could be taken to improve customer perceptions in hopes of improving long-term retention. Market structure and Competition. Within those markets, you can identify segments whose members are likely to buy your products.
However, a price drop in the oligopoly market structure may not universally benefit the industry, so Verizon would need to ensure that its competitors remain viable.
In a perfectly competitive market, there are no barriers to entry and many suppliers are available to produce goods. Achieving this goal would allow the firm to wield the most influence over its fellow competitors in the industry.
In the technology industry, consumers are always looking for the latest and greatest products. Whether such influences on market structure have a positive or negative effect on your business depends on how well your business can support the goals of the public policy initiatives.
Cost Focus Strategy A cost focus strategy is similar to a cost leadership strategy, but the major difference is that in a cost focus strategy your business targets a very specific segment of the market and offers that market the lowest prices available.
For example, a boutique that sells clothes for people that are four feet tall or shorter would be pursuing a differentiation focus strategy by catering to a very narrow and unique segment of the clothing market.
Verizon does not need to change its marketing or product formula because there is not enough outside competition to force new innovation. Your business can save money by analyzing market structure and focusing on easily accessible markets. There are many competitive strategies the company can implement to further expand its market share within the industry.
Your business can achieve higher prices and operate more profitably in markets with high barriers to entry and few competitors. Cost Leadership Strategy Cost leadership is a tough strategy for small businesses to implement, because it requires a long-term commitment to selling your products and services at a cheap price.
The oligopoly market structure benefits Verizon Communications is several ways. The second competitive tactic that could be employed is innovation strategy. If suppliers in a market are subsidized or if market prices are regulated, you have to adapt your business strategies to take advantage of possible government support and comply with regulatory requirements.
When you organize your business to take advantage of market structure, you can eliminate wasted effort and improve profitability. The greatest profitability in the telecommunications industry comes from customers who choose to remain loyal over a long period of time Chen In reality, every industry is subject to unique market conditions that may create various imperfect market structures such as monopolies and oligopolies in which small numbers of firms dominate.
Competitive Strategies and Recommendations Verizon Communications can employ several strategies to further its dominance of the telecommunications industry. As the only telecom choice for consumers, the company would be free to raise prices and reduce service expectations with minimal impact on their market share Alexander Take cell phone service plans for example, where it is difficult to find significant price differences or contract terms between competitors.
When examined closely, the cell phone service plans offered in the telecommunications industry differ little among the major companies within the oligopoly.
The market structure in which Verizon Communications operates is a clear example of an oligopoly. For example, if you operate a kids clothing retail outlet in a regional mall, your most accessible market is consumers within easy driving distance, and you have to focus on the market segment that includes young families.
If your business is able to differentiate its products or services in the minds of buyers, it can reap the rewards of higher sales volume based on the perceived value, which your business offers, but your competitors do not.
I believe this is the most important strategy in the oligopoly market structure because it does not directly harm other competitors within the industry, but rather limits their opportunity to acquire new customers.
The low number of competitors allows cooperation between firms to ensure that no service provider in the industry is offering prices that are too low.
For example, Verizon could create a survey for customers aimed at finding likes and dislikes about the company.
If Verizon Communications can retain their customers over the long term, it will further strengthen its market share and increase profits. This differs vastly from the local gas station market in which price is the single most important factor in the minds of most consumers.
The other potential structures are monopolistic competition, which contains many sellers and buyers, with low barriers to entry Alexander Because there are only several firms competing for a wide customer base, they tend to make decisions that aim to provide widespread benefits to the entire industry.Porter's four major types of competitive strategies focus on offering the lowest prices, targeting a very narrow market, or offering products and.
Market Structure 1 Running head: Market Structure Differences Market Structure Differences and Pricing Strategies John S. Blackburn ECON Managerial Economics 30 December Market Structure 2 Running head: Market Structure Differences ABSTRACT There are many businesses and companies in the world today selling.
Different Market Structures and Strategies There are various market structures according to economic theory which include perfect competition, monopolistic rivalry, monopoly and oligopoly.
Ideal opposition and power are opposed of each other whilst one has plentiful organizations contrasting in a comparable market and hardly one in the. Free Essay: Market Structures and Competitive Strategies ECO/ Market Structures and Competitive Strategies Introduction There are many other soft drink.
An industry consists of all firms making similar or identical products. An industry’s market structure depends on the number of firms in the industry and how they compete.
Here are the four basic market structures: Perfect competition: Perfect competition happens when numerous small firms compete against each other. Firms in a competitive. Market Structures and Competitive Strategies ECO/ Market Structures and Competitive Strategies Introduction There are many other soft drink makers but Coca Cola has been renowned to be one of the world’s top best soft drink makers and is among the best brands ever for a lot of years.Download