Compose a 1000 words essay on Market Model Patterns of Change. Needs to be plagiarism free!
Download file to see previous pages…
According to International Business (2009), the Coca-Cola Company used to be a monopoly initially when there were no competitors. This is because it was the only seller that had a well-defined commodity since there were no substantial substitutes of a similar commodity from other firms into the market. However, the Coca-Cola Company can no longer be defined as a monopoly. Its market model (monopoly) has undergone change into oligopoly. International Business (2009) argues that this is due to the presence of the Pepsi and Schweppes Companies among others that have brought plenty of competition in the market for the Coca-Cola Company, with all their products. For the oligopoly market, model, each supplier has a possibility of influencing the market price. thus, leading to competition among the suppliers. In an oligopoly market model, there are only a few industries that dominate the market. For instance, the Coca-Cola Company and Pepsi dominate the bottled and canned soft drinks industry, in most countries. They have control over the market prices and supplies and have high barriers to entry. Their products are nearly identical. hence, the companies involved compete for the market share, and are independent due to the market forces. According to Barlow (2005) there are short-run and long-run behaviors of oligopoly. Long run can be described as a period in which all factors of production, as well as cost, are variable. In this case, industries are able to adjust to cost. The short run refers to a period where the quality of some inputs cannot be raised beyond the priced amount that is available. hence, short run industries can only be able to influence the prices through adjustments made to production. However, in economics, long run models can shift from short run equilibrium where the supply and demand, reacts to price levels with more flexibility. Thus, oligopolistic companies share a variety of short run and long run behaviors such as interdependence, rigid prices, competition, mergers and collusion (Barlow, 2005). The Bertrand model and the contestable markets theory leads to a long run oligopoly market-equilibrium price and output solution, which is similar to that achieved in a competitive market (International Business, 2009). Bertrand argues that products and production costs are identical or similar the customers are likely to purchase from the company selling at the lowest possible price. In addition, the kinked demand curve model of oligopoly that was developed by Paul Sweezy assumes that a business in an oligopoly may face a dual demand curve for its product based on the reactions of other companies in the market to a change in its variables (Cameron and Green, 2009). Thus, short-lived price war between rival companies happens under this model, in which firms are seeking to seize a short term advantage and gain some extra market share. Areas in the company that could lead to transaction costs include the global environment, the competitive environment and the socio-cultural differences. The global environment has become quite sensitive forcing many companies that operate locally to join the global market. thus, resulting in globalization. The Coca-Cola Company is also sensitive to the strategies of globalization, which has led to high competition, as well as to transactions costs. The competitive environment also plays a similar role.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Writing Errands is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order formOnce we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignmentAs soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download