Are apples a perfectly competitive market?
Firms cannot set themselves apart by charging a premium for higher-quality products and services. For instance, it would be impossible for a company like Apple (AAPL) to exist in a perfectly competitive market because its phones are more expensive than those of its competitors.
Farmers' markets: The average farmers' market is perhaps the closest real-life example to perfect competition. Small producers sell nearly identical products for very similar prices.
In real sense, the Smartphone market operates in the oligopolistic market because there are few firms that account for more than half of the industry supply. In this case, Apple has the iPhone; Google has the Android and a couple more companies.
Most agricultural markets are "perfectly competitive," meaning (ideally) that a homogeneous product is produced by and for many sellers and buyers, who are well informed about prices. The market is characterized by free entry and exit, with producers obligated to be price takers.
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Market Structure of Apple.
✅ Paper Type: Free Essay | ✅ Subject: Economics |
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✅ Wordcount: 3447 words | ✅ Published: 10th Aug 2021 |
The general tactic which is used by Apple is broad differentiation. This is a strategy which emphasizes on basic structures which differentiate the company and its products from the competitors (Dolata, 2017). Following the differentiation strategy, Apple is ahead in the information technology market.
Answer: Monopolistic Competition
Many firms have similar marketing strategies and recipes but McDonald's is still unique. Thus, the market can't be perfectly competitive since the goods aren't homogeneous. The market can't be a monopoly because there are other sellers of fast food.
- Agriculture: In this market, products are very similar. Carrots, potatoes, and grain are all generic, with many farmers producing them. ...
- Foreign Exchange Markets: In this market, traders exchange currencies. ...
- Online shopping: We may not see the internet as a distinct market.
Firms are said to be in perfect competition when the following conditions occur: Many firms produce identical products. Many buyers are available to buy the product, and many sellers are available to sell the product.
Plenty of competition exists within tech, but Apple still emerges as the most dominant force in the industry. Apple's monopolistic control over the loyal consumer base it has accumulated has helped it to maintain its success and influence over the tech industry.
Is Apple a monopoly market?
And the judge ruled that Apple doesn't have monopoly power because customers can choose Android phones instead. She did find, however, that Apple's policies violated California's Unfair Competition Law. Both sides appealed, and the Ninth Circuit is now reviewing the case.
Apple Inc. is considered an Oligopoly and Monopolistic Competition because of there being more competitors and also with the company maintaining its position in the market because its too costly or difficult for other rivals to enter, thus meaning there are entry barriers.
Banana is a perfect example of perfect competition.
Explanation of Solution
Fast food industry and clothing industry are most likely to be perfectly competitive because a perfectly competitive market is an organized market with the liberty of free entry and exits of firms, and both the sellers and buyers have perfect knowledge about the market and prevailing prices.
Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market.
Leaders in the Mobile Phone Market are Apple and Samsung
Samsung is a perfect example. The company has managed to produce low cost high quality smartphone products attracting new customers and, therefore, expanding the company's market shares.
Apple competitors include IBM, Google, Microsoft, Amazon and Samsung.
Brand strength gives companies like Apple great visibility in the marketplace and helps build consumer loyalty. The company's strong branding, and the interrelationships between its products, encourage customers who buy one Apple product to try another.
Apple Marketing Mix. In growing its marketing mix, Apple follows an approach that concentrates on premium branding. This approach includes making use of the premium brand and guaranteeing that all of the 4P elements (Products, Price, Place, and Promotions) support the maintenance of a powerful brand image.
It is considered an oligopoly because it is one of the few firms that dominate the market for coffee and other beverages. The main competitors of Starbucks are McDonald's and Dunkin Donuts who also specialize in breakfast items such as donuts, pastries, or sandwiches.
Is Walmart a perfectly competitive market?
Walmart is not a good example of perfect competition. First, Walmart does not sell an identical product as all of its competitors because the different competitors carry different lines of products and different overall product offerings (ie some offer groceries while others don't).
Potato farming (like farming of most agricultural products) is highly competitive (i.e. very close to a perfectly competitive market). Thus, price is determined by demand and supply.
Being similar products their producers invest in heavy advertising techniques to sell their products in the market. So, Coca-cola and Pepsi- cola cannot be produced in a perfectly competitive market.
An example is the agriculture market. A competitive market can also be called perfect competition. A market that is not perfectly competitive is a monopoly. It has only one seller selling a unique product and can exploit buyers due to the lack of close alternatives or substitutes.
Also, they can raise the prices of the products at the same time, and in this way produce more benefits to them, since they are a small group of companies that control the market. So, getting back to the main question, we can say, that Apple belongs to the monopoly market structure.
As stated in the above paragraph, Apple store operates in an oligopoly market structure. The company is also associated with a vertical monopoly market structure. The Apple store company sells its products in various markets across the globe.
For instance, both Microsoft and Apple are oligopolies as they are the only two organizations producing globally-used operating systems.
Amazon is a tech company and eCommerce giant. The company offers several services that compete with Apple Services. In 2021, Amazon had over 1,622,000 employees and generated $469 billion in revenues.
Apple products speak for themselves. That's how Apple has consistently positioned their marketing, keeping messaging and visuals simple. Most of the marketing is free of things like feature lists, pricing, or expensive special effects. They know the product will sell itself without relying on pomp and circumstance.
What Industry Is an Example of Monopolistic Competition? Monopolistic competition is present in restaurants like Burger King and McDonald's. Both are fast food chains that target a similar market and offer similar products and services.
Are tomatoes perfectly competitive?
Answer and Explanation: Tomato market is a perfect competitive market. Tomatoes are homogenous and the price of agricultural products is determined by the forces of supply and demand. In addition, the entry to tomato market has no barriers, therefore, the tomato market qualifies to be a perfectly competitive market.
The market for strawberries is perfectly competitive.
In a perfectly competitive market, there are numerous buyers and sellers of exactly the same good. The standard examples of perfectly competitive markets are those for commodities, such as copper, sugar, wheat, or coffee.
But unlike in perfect competition, the firms in monopolistic competition are not selling identical products. Instead, they sell somewhat differentiated products, which gives the firms some degree of monopoly power over the consumers. Fast-food chain restaurants are a classic example of monopolistic competition.
Markets for fruits and vegetables are usually perfectly competitive markets.
And the judge ruled that Apple doesn't have monopoly power because customers can choose Android phones instead. She did find, however, that Apple's policies violated California's Unfair Competition Law. Both sides appealed, and the Ninth Circuit is now reviewing the case.
About Dell
Dell Technologies (DVMT) is a manufacturer of desktop and mobile computing devices and one of Apple's primary competitors.
Many firms have similar marketing strategies and recipes but McDonald's is still unique. Thus, the market can't be perfectly competitive since the goods aren't homogeneous. The market can't be a monopoly because there are other sellers of fast food.