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Describe each of the four market structures and explain how each one may be conducive to starting your new Asian themed

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Question: Assume you are graduating from Holmes Institute and that you want to begin a business in Australia. You are aware that there are four different market structures and that some structures are hostile to new products and services. You decide upon Australia as a location for an Asian fast-food theme restaurant because you have expertise in that sector and you believe that it will be popular. You have also considered the four market structures: perfect, monopolistic, oligopoly and monopoly competition. You decide on one of the structures.

a. Describe each of the four market structures and explain how each one may be conducive to starting your new Asian themed small business.

ANSWER:
A. Monopoly: Having only one seller, this marketplace is controlled and dominated by the firm.
Oligopoly: In this marketplace, 3-5 firms are dominating the market and the buyers are considered far greater than the sellers. The firms use their marketing influence strategy to maximize the profit margin.

Perfect competition: In this type of market, a large number of sellers and buyers are present. Having no big sellers, all the companies in this market are offering price takers.

Monopolistic competition: In this market, a large number of sellers and buyers offer heterogeneous products (Didenko et al., 2018, p132(3)). As per the consumer's preferences, affordable and competitive prices are implemented.

b. Suppose you start your business within a monopolistic market structure. How is that structure advantageous to your proposed business and how would it affect the future growth of your business?

ANSWER:

B. The monopolistic marketplace would be beneficial for the business if the firm offers product diversification, competitive pricing, subscription-based pricing, and innovation in product quality and longevity structure (Head and Spencer, 2017, p1414(2)). The constant modifications in the 4P marketing mix model, business strategies, and technological implications would be helpful to enhance the prospect of the business.


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