Market Structure Analysis: Hotel, Soft Drink, and Industry Report

This report provides an executive summary of market structures, focusing on monopolistic competition and oligopoly. It begins with an introduction to market structures, emphasizing their significance for different industries, and then explores the characteristics of both monopolistic and oligopoly markets. The report details the features of monopolistic competition, particularly in the hotel industry, highlighting product differentiation and the presence of numerous competitors. It explains how the hotel industry operates within this structure, offering various services and competing for customers. Additionally, the report discusses the oligopoly market, emphasizing the presence of few sellers and its application to the soft drink industry. The analysis includes key characteristics such as interdependence and advertising strategies. The report concludes by summarizing the key aspects of each market structure and their relevance to the selected industries.

International Trade and
Enterprise

Executive Summary
The present study of report is discussed the different market structure related with the
different industry such as monopolistic market interrelate with hotel industry and on other hand,
the oligopoly market is interrelated with soft drink industry. Assignment has explained the brief
introduction about the different market structure such as Monopolistic competition market and
Oligopoly market. The report defines the meaning of Monopolistic competition which is, it is the
type of market structure and it is the type of imperfect competition whereas Oligopoly market
has large numbers of suppliers and few numbers of sellers. The report has determined different
types of Monopolistic markets. The Report has been explained that hotel industry uses the
monopolistic market structure in their business because this industry is provided the substitutes
products and also there have a lot of competitors in the market. The report has end up with the
suitable conclusion.

Table of Contents
INTRODUCTION...........................................................................................................................1
Monopolistic competition and Oligopoly markets with interrelate with different industry........1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Market structure is defined the different characteristics of the market. Which means this
market structure gives the ideas to different industry that means which type of market structure
they follow and this is suitable for their business or not. Firms are mainly concentrated on those
characteristics which affect the nature of business for example competition and pricing strategy
are different in different market structure (Wang, and et.al., 2019). For better understanding the
different market structure. Here we discuss the different marker structure relate with the
different industry such monopolistic market interrelate with hotel industry and in other hand, the
oligopoly market interrelate with soft drink industry. The report will explain the brief
introduction about the different market structure such as Monopolistic competition market and
Oligopoly market. Moreover, report will explain the different characteristics of Monopolistic
competition market and also describe the features of market. Moreover, report will explain that
soft drink industry uses the oligopoly market structure in their business because this industry
provides the different types of products also firms faces the fewer competitors in the market. The
report will explain that hotel industry uses the monopolistic market structure in their business,
because this industry is provided the substitutes products and also there have a lot of competitors
in the market.
Monopolistic competition and Oligopoly markets with interrelate with different industry
Monopolistic competition market
Monopolistic competition it is the market structure and it is the type of imperfect
competition. In this there are many producers and they sale their product in the market with some
differentiated in the product for Example differentiae in the quality and brand. Under this market
there are number of firms and competitors which makes different product. They become different
in the process of manufacturing, growth or development. This product are close to their
substitute products. In other words there are many competitors in the market but they all are
produce similar product with some innovations, and they compete with each other to expand the
growth in the market also Firms has decided their prices on the product with the basis of
competitions.
There are different characteristics of Monopolistic competition market
 In this market there are many competitors and many customers, or firms are had no
control on the prices of the product.

 In this market structure there are fewer barriers on exit and entry.
 Firms has control the prices on minimum degree.
 Consumer thought that the product is different form the other competitors' product.
 In this market firm faces many competitions.
 In this market firms are not is price taker
There are different features of Monopolistic competition market.
Product differentiation:
In this structure there are different features but the product differentiate is the one of the
important features of the organizations, firm produce the different products with their rivalry
companies which means firm produce the different product not identically but there are some
features which different each others (Kononenko and Kugai, 2019). In addition, there are many
producers who produce the similar product which is not similar but is narrowly different from
Their competitors. The products are commonly different from each other for example in quality
and brand they are differed. Also, the products are close substitutes with their rivalry product and
hence that is the reason the prices of product is not much different when one firm charge the high
prices on the product its reduced the demand of product because customer switch the product and
they prefer to purchase the low price of product.
Large number of firms:
There are large number of firms operates in this market structure. Many organizations
select this market structure to operate their business in the worldwide (Li, Y. Shuai, 2019). There
is a tough competition in the market many firms want to perform better and expand their
business in globally but there are many existing firms who provides the similar product and this
is the reason that competition is increases in this market. The organization produces the different
goods and services and which are substitutes for each other, thus it increases the high
competition in the market, the rivalry into the entity a pure and a stiff one.
Free Entry and Exit:
Under this market, firms are operates in the market there are some advantage when entity
preform in Monopolistic competition market they not face any difficulty of entry and exist in this
market structure. The new firm easily enter in the market and expand their business by giving
the unique and innovative products to the customer. They come up with the innovation and
compete with the existing company by providing the variety of products and create outstanding

performance. In other hand, Those firm who are not generated the high profit and they generated
the high loss so this is the reason they can move out easily on the industry when they want.
Some control over price:
In this market the product are similar and they substitute for each other, if one firm reduces the
prices on the products as compare to their rivalry, then the consumers of other firm will switch
their choices to other products and they considerer the low prices of product for
purchasing(Michaelides and et.al., 2019). Vice versa when firm increase the prices on the
substitute products, it will reduce the demand of product customers switch the product and they
purchase the low price of product. Thus, under the monopolistic competition, an individual entity
is not a price taker but there is some factor which has influence over the price of its product.
Heavy expenditure on Advertisement and other Selling Costs:
Into the monopolistic competitions, the firms invest the huge capital on promotion and
advertising activities and other selling promotions(Kononenko and Kugai, 2019). So it directly
impacts on the cost of its increase the costs of advertising for increase the sale of their products.
Since there are many competitions in the market also products are different but there are close
substitutes, So this is the big reason firms uses the different promotional activities in their
business and they invest the huge money in the advertising activities so firms invest the money in
the different promotional activities to capture a larger market share.
Product Variation:
Into the monopolistic competition, there is some differentiation in the product which
means company offered the different produce with others. So many firms offer the innovative
products as compare to their rivalries (Wang, and et.al., 2019). Firms are focus on the customers
they concentrate on meet the needs of the customers that means each firm tries to provide the
best product to the customer and they make their product according to the needs of customer.
Firms changes in their goods and they make changes it could be in the form of new resources and
materials, better quality, new packaging, new design etc. Thus, the number of goods and services
a company is selling in the competition market it depends on the innovative ideas of its product
and the range to which it different from the other products.
Monopolistic competition market in hotel industry
Many industries operate under the monopolistic competition market. The hotel industry is
also operates in this market. The hotel industry freely owned and operated high level of hotels

and restaurants. In the case of hotels, each hotels gives the different services to their customers
all hotels offers something new and innovative services to their consumers and they all are
different to each others there logo, tag lines names and quality of services etc. Hotel industry
are use the different promotional activities in their business to attract the consumers and uses the
different element of uniqueness, but all hotels are indefeasibly competing for the same
customers(Kononenko and Kugai, 2019). In this market structure there are different
characteristics that hotel industry follow to perform in the market.
 Many sellers in the hotel industry
 Differentiate in hotel services
 Hotels are easily entered and exit in industry.
The hotel industry has also some classic characteristic like the demand is increased, the hotel
have a number of rooms to give their hotel services to the customers. There also is the best
characteristic in the hotel industry that is hotel have a requirement of capital for start-up
(Michaelides and et.al., 2019). Lastly, hotel industry follows the different production methods
which are characterized as employee profound, with abstract products, indivisible production and
consumption functions, multiple locations, and variable levels of service quality and these
service systems are increase the level of customers. So the Monopolistic market is the suitable
market for hotel industry.
In the market there are a many types of hotels which provide the similar type of services
to the customers. Furthermore, hotels provide the similar product but they charge the prices on
the basis of their high quality of services. In the hotel industry there are lot of competitors and
they all are competed with their competitors.
Oligopoly market
The Oligopoly market is the market structure which describes the different characteristics
of the market (Shabaninejad and et.al. 2019). In this market there are few sellers, furthermore,
there are also the few competitions in the market. In this market structure there are some firms
who selling the homogeneous or differentiated products. In other words, the Oligopoly market
defines that there are very few numbers of competition in the market and they lie between the
pure monopoly and monopolistic competition, it describes that where few competitors generate
the high profit in the market and the low number of seller dominate the market they have high
control over the price of the product.

There are different characteristics of Oligopoly market
 The organization producing the homogeneous products
 The organization producing the heterogeneous products.
 In this market there are few sellers or fewer competitions.
 Few sellers govern the market and have control over the price of the product.
 Large number of customers.
There are different features of Oligopoly market
Few sellers: Under the oligopoly market there are few numbers of sellers, but there are large
number of customers in the market, the few numbers of sellers is dominated the market also they
enjoy and provide the best quality of product to the customers.
Interdependence: interdependence it is one of the most essential features of the oligopoly
market, whereas, the seller of the market they are alert when their competitors are take any
actions related to the promotional activities and pricing activities, all seller who perform in the
market they have to be alert with new activities taken by the rivalry firms. In addition, there are
few sellers in the market, when one firm take any actions and make changes in the promotional
and pricing strategies (Kononenko and Kugai, 2019). So all other competitors makes the changes
to run their business in competitive market.
Advertising: under this market, many entities using the advertising and promotional activities to
expand their business in international market advertises, firm invest the lot of capital in
advertising activities with the motive of attain the high customer base and also attract the more
customers (Mowla, 2019). So this is the best way of increase the customer base and also helps
to compete with the competitors.
Competition: in the oligopoly market, there are few competitions in the market, it increases the
level of competitions and it will be a rapid contests among the sellers. Furthermore, any actions
taken by the company it directly impacts on the performance of other thus, many competitors are
also makes changes and they Also compete with their competitors.

Entry and Exit Barriers
In this market, company easily exist but they are not easily enter in the market they face many
barriers to entering in the market (Li, Y. Shuai, 2019). The barriers could be government
regulation, licence, patent, Trademark, the economies of scale of country, high funds'
requirement, difficult technology, etc. Also, the government rules and regulations are is the main
barriers of new entrants because government always support the existing firms and they provide
the opportunity only the existing large firms.
Lack of Uniformity
There are lack of competitor and one firms take the actions it directly impacts on the
performance of other firms. Thus, for generate the high profits company increase their
performance as well as they use the different promotional activities in the business to expand the
business in globally.

Oligopoly markets
It is the market that is shared by the small number of producers and sellers. The
Oligopoly market is operated by the few numbers of buyers and sellers. It is the market structure
of small numbers of firms. The concentration measures the market share of the high profitability
firms (Karl, case and Sharon, 2019). There is no precise limits of the firms should have in the
Oligopoly, but the number firms should be small because the actions of one firm is influence by
the another in Oligopoly. It is the market situations where small numbers of firms are colluded
with one another. Its economic, technological and legal factor contributes the oligopoly. The
difficulty of oligopoly faces the prisoner's dilemma (Yoshikawa, 2019). This encourages
oligopolistic to achieve higher market returns. The market face difficulty due to intervention of
government polices that discourages the oligopolistic behaviour.
Marketing strategies of Oligopolies
Oligopoly sounds rare in the economy. This market allows firms to act freely. They
allowed themselves to create an optimistic price. The Oligopoly has power moreover on the
prices and customers will only purchase the products when the prices are low (Lin, 2019).
Through mutual consideration they reduce the prices of the products. They act combined and
achieved the desired results. It is the market where few suppliers dominates the market. It
declines the demand curve and steadily increase the supply curve. These markets easily identifies
the suppliers and make them to sale the supervised quality.
Oligopoly market of Soft drinks Industries
The Soft drink Industry is the Oligopoly industry for example the Coca Cola Company.
This is called as the Oligopoly because the industry produce products that are differentiated from
the others. The firms in this industry are mutually dependent. The Oligopoly industry of Soft
drinks are mutually interdependent and firm is affected by its competitors. For example, Sales of
Coca Cola is being affected by the Pepsi products (Fortin and Singer, 2019). The competitors in
soft drink industry is affected changing, advertising, specification and prices. Oligopoly is of two
types purely Oligopoly where products are totally differentiated and other characteristics of this
market includes less number of firm resulting in the greater interdependence. The company of
Soft drinks is bounded by the price competition where the sellers are affiliated with one another.
The change in price affects the output of the firms. The Soft drink industry has rivalry.
The oligopolistic industry considers the market demand and on the basis of that they sets the

strategies. The Coca-Cola and Pepsi are the best examples of soft drinks industry as the
oligopoly market. These companies are using effective pricing and marketing strategies to take
the competitive edge. The Pepsi again decides the prices when Coke small bottle comes at just in
$1 they changed also changes their prices to take the competitive edge (Stühmeier, 2019).
Through this they god success in attracting the customers but they could not recover the
production costs. Soft drink industry has situations where mass of people are involved but these
firms have interdependence. They got influence by the actions of one another.

In Soft drink Industry the firms compete in terms of the product designing, advertising
and packaging. This is apparent in industries like soft drinks. For example, we can take the
marketing strategy of spirit, each time it comes up with the innovation and new advertising in
order to retain customers (Baiardi and Naimzada, 2016). The advertisement highlights the similar
messages as their competitors Mountain dew is doing. The firms are motivated to take a
competitive edge through their adverting and to maximization its sales turnover which affects the
current profitability. Thus, the competition in oligopoly is high.