Definition: The Monopoly is a market structure characterized by a single seller, selling the unique product with the restriction for a new firm to enter the market. Simply, monopoly is a form of market where there is a single seller selling a particular commodity for which there are no close substitutes. Features of Monopoly Market Under monopoly, the firm has … [Read more...] about Monopoly Market
Marketing
Types of Oligopoly Market
Definition: The Oligopoly is a market structure wherein few sellers dominate the market and sell the homogeneous or heterogeneous products. Types of Oligopoly Market Open Vs Closed Oligopoly: This classification is made on the basis of freedom to enter into the new industry. An open Oligopoly is the market situation wherein firm can enter into the industry any … [Read more...] about Types of Oligopoly Market
Oligopoly Market
Definition: The Oligopoly Market characterized by few sellers, selling the homogeneous or differentiated products. In other words, the Oligopoly market structure lies between the pure monopoly and monopolistic competition, where few sellers dominate the market and have control over the price of the product. Under the Oligopoly market, a firm either produces: Homogeneous … [Read more...] about Oligopoly Market
Monopolistic Competition
Definition: Under, the Monopolistic Competition, there are a large number of firms that produce differentiated products which are close substitutes for each other. In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price. Features of Monopolistic Competition Product … [Read more...] about Monopolistic Competition
Perfect Competition
Definition: The Perfect Competition is a market structure where a large number of buyers and sellers are present, and all are engaged in the buying and selling of the homogeneous products at a single price prevailing in the market. In other words, perfect competition also referred to as a pure competition, exists when there is no direct competition between the rivals and all … [Read more...] about Perfect Competition
Market Structure
Definition: The Market Structure refers to the characteristics of the market either organizational or competitive, that describes the nature of competition and the pricing policy followed in the market. Thus, the market structure can be defined as, the number of firms producing the identical goods and services in the market and whose structure is determined on the basis of … [Read more...] about Market Structure
Guerrilla Warfare
Definition: A Guerrilla warfare is the marketing strategy adopted by the challenger firm intended to launch the intermittent attacks with an intention to harass or demoralize the competitor. This strategy is more a preparation for the war than an actual war. A guerrilla warfare can be expensive, but however, is less than the frontal, flank and encirclement attack. … [Read more...] about Guerrilla Warfare
Bypass Attack
Definition: The Bypass Attack is the most indirect marketing strategy adopted by the challenging firm with a view to surpassing the competitor by attacking its easier markets. The purpose of this strategy is to broaden the firm’s resources by capturing the market share of the competing firm. The firm can adopt any of the three approaches before launching the bypass attack; … [Read more...] about Bypass Attack
Encirclement Attack
Definition: The Encirclement Attack is a war strategy adopted by the challenger firm intended to attack the competitor on all the major fronts. Under this strategy, the challenging firm considers both the strengths and weaknesses of the opponent and then launch the attack simultaneously. It is assumed that only those firms that are 10 times stronger or powerful than the … [Read more...] about Encirclement Attack
Flank Attack
Definition: The Flank attack is the marketing strategy adopted by the challenger firm and is intended to attack the weak points or blind spots of the competitor, especially a leader. A flank attack strategy is based on the assumption, that a large firm, may have several product lines and a wide range of services, but may not be necessarily a leader in all the categories. … [Read more...] about Flank Attack