The market environment heavily influences corporate decision-making ability. Discuss the differences in executive decisions concerning pricing, product design, and advertising between a company that exists in a perfectly competitive market and a company that lives a monopolistically competitive market.
1 Answer | Add Yours
Obviously a company in a competitive market must make decisions based on two main things: What profit must the company make to ensure it remains in business and what is most important; pricing competitiveness or product design and functionality. Being competitive depends on what customers expect from your product, i.e. Apple's Iphones being first out with new features commands higher pricing while its competitiors must rely on similar features at a lower price once their products come to market. In a monopolistic market ( which one may say Apple has) benefits from the above mentioned benefits as long as it continues to innovate and be the first to market. Patents have ensured monopolistic markets for years especially within the pharmaceutical industry
We’ve answered 334,085 questions. We can answer yours, too.Ask a question