Main differences between perfect competition and monopoly market Essay - 2

Main differences between perfect competition and monopoly market structures - Essay Example Additionally, the firms already in perfect competition have no way of exploiting customers, because other firms can entre and compete with them. Furthermore, firms in this market structure have good price information because buyers or consumers have to know the prices so that they can compare with other firms before they buy a product. On the other hand, suppliers have to know the prices so that they can merge them with others (OConnor 2004). Based on the above analysis of firms in perfect competition, the following assumptions can be deduced from the firms. The firms offer homogenous products meaning that products are differentiated in terms of packaging or branding so as to beat competition and stay in business. Buyers and sellers in this market are many, and this means that exit of seller in the market has no effect on the prices. This further indicates that both buyers and sellers have no influence on price hence price is determined by market (Chakra arty 2009). Firms under perfect competition have no influence on the price therefore they are the price takers. Because of existence of many firms in the market each firm charges the price determined by the demand and market supply. In the short-run, firms under perfect competition make supernormal profits or loss. Because of no barriers to entry or exit from market structures under perfect competition, other firms join into the market and if they make losses, firms making losses exit the market. In the long run, due to the many firms that have joined the market influenced by super-normal profits made by other firms, the supply in the market will be more hence supply curve shifts to the right to the point where super-normal profits are no more (Khanna, 2008). Additionally, in the long run supply has more influence on the price than the demand. The first graph represents market of many suppliers and many

Strategy Management in Small Export Business of China Dissertation

Strategy Management in Small Export Business of China - Dissertation Example issertation would include the components of the various small business firms of China, their analysis from the strategic perspective, framing research questions for the survey, conducting a survey based on the industry, evaluating the findings obtained from the survey, drawing the conclusion and suggesting appropriate recommendations for the issues faced by the industry. Additionally the study aims at investigating the significance of internal and external business forces for small export enterprise in southeastern parts of china, and will inevitably aim at analyzing these small business’s successes and failure from the strategic management standpoint during the time period 1980 to 2012. 1.2 Background of this study China is a significantly developing country and therefore China have broad market environment, as a result there are lots of foreign companies to enter the Chinese market. These foreign capital enterprises within the original industry remains monopolized by small, medium, state-owned enterprises which lead to the strong impact of China's state-owned enterprises in some industries. In addition, international competition has developed in the Chinese market gradually. At the same time, China's domestic competition has also contributed to the globalization of market competition. Therefore, at present the production and operation of China's small enterprises have to experience and face international competition. Over the earlier 2 decades, the small and medium-sized enterprises (SMEs) of China have gone through more or less three development stages, together with the expansion of China’s improvement and establishment. The first stage was from the time period 1978 to the year 1992. This era had been characterized by the development of SMEs in scale and... The study aims at investigating the significance of internal and external business forces for small export enterprise in south-eastern parts of China, and will inevitably aim at analyzing these small business’s successes and failure from the strategic management standpoint during the time period 1980 to 2012. China is a significantly developing country and therefore China has a broad market environment, as a result, there are lots of foreign companies to enter the Chinese market. These foreign capital enterprises within the original industry remain monopolized by small, medium, state-owned enterprises which lead to the strong impact of China's state-owned enterprises in some industries. In addition, international competition has developed in the Chinese market gradually. At the same time, China's domestic competition has also contributed to the globalization of market competition. Therefore, at present, the production and operation of China's small enterprises have to experien ce and face international competition. Over the earlier 2 decades, the small and medium-sized enterprises (SMEs) of China have gone through more or less three development stages, together with the expansion of China’s improvement and establishment. The first stage was from the time period 1978 to the year 1992. This era had been characterized by the development of SMEs in scale and number. This was the result of the government’s support for and encouragement of the formation of collective, self-employed and township enterprises.