Monopolistic Competition Definition: may be defined as a market with some special features, A market where the firms differentiate their products and the competition between the firms depends on who differentiate its products more than the others, they may differentiate their products by developing a brand name, product logo or packaging that distinctive the products than the others. They may also use the advertisement to advertise their products and this depends on the size of the company and how much it can pay for the advertisements.
Another feature of this market, is the control over price, unlike the perfect competition markets where all the firms are price takers, the monopolistic completion firms have some control over the prices.
Monopolistic Competitive Companies
Size: | Small Company | Medium Company | Large Company |
Features: | |||
Differentiated products | OMEGA watches | Ray-Ban Sunglasses | KFC |
Control over price | MAX | Tim Hortons | Co-op |
Mass advertising | Dolce & Gabbana | Colgate Dental | Nestlé |
Brand name goods | Tupperware | Rollerblade | Aspirin |
Distinctive packaging | Burberry Bags | Johnson & Johnson | Kit Kat |
Nike may be fitted in the raw of the differentiated products, its logo and its products made it a very well know brand and a product that is a very high in demand due to its differentiated products. And it became a brand name in the markets.
Dollar Store may be fitted in with the feature of Control over price.
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