You need to pick any company and analyse its strategy regarding the market structure it operates in.
1) What strategies are applied in the company?
2) Is the company driven with the Profit maximisation, Revenue maximisation, or Sales (Market Share) maximisation?
3) Is this company approach compatible with the theoretic ideas on the success in such a market structure? (compare the basic theoretic suggestions for the company performance with the actual chosen direction; here, you need to compare the normative vs. positive approaches)
Sample Solution
I choose to analyze the strategy of Apple Inc.
1) Apple’s strategies involve offering a diversified product range with cutting-edge technology, high quality and innovation as key points, while also seeking to provide superior customer service experiences through one-to-one consultations and retail stores. The company is also heavily invested in digital marketing campaigns and R&D activities that aim to keep them up to date with the latest trends.
2) Apple’s strategic approach is focused on both profit maximisation as well as sales (market share) maximisation. With their wide array of innovative products, they are able to capture a large market share while at the same time achieving higher profit margins by pricing their devices competitively yet still making sure they remain desirable for customers due to their unique capabilities.
3) This particular strategy adopted by Apple appears compatible with theoretical ideas about success in such a market structure. For instance, according to normative theory on monopolies/oligopolies, it suggests that companies should focus on producing differentiated products in order to achieve higher profits from greater market power since this will enable them capture larger shares of the market and make more money than if multiple competitors were present in the industry – which is exactly what Apple has done successfully for years now! This case study also serves as an example regarding positive theories which state that firms operating under perfect competition need innovate constantly so they can differentiate themselves from rivals thus gaining advantage over any new entrants into marketplace or else face potential loss in revenue over long run – something again evident here given its ambitious drive towards creating next generation innovative products like iPhone X series etc..
Sample Solution
I choose to analyze the strategy of Apple Inc.
1) Apple’s strategies involve offering a diversified product range with cutting-edge technology, high quality and innovation as key points, while also seeking to provide superior customer service experiences through one-to-one consultations and retail stores. The company is also heavily invested in digital marketing campaigns and R&D activities that aim to keep them up to date with the latest trends.
2) Apple’s strategic approach is focused on both profit maximisation as well as sales (market share) maximisation. With their wide array of innovative products, they are able to capture a large market share while at the same time achieving higher profit margins by pricing their devices competitively yet still making sure they remain desirable for customers due to their unique capabilities.
3) This particular strategy adopted by Apple appears compatible with theoretical ideas about success in such a market structure. For instance, according to normative theory on monopolies/oligopolies, it suggests that companies should focus on producing differentiated products in order to achieve higher profits from greater market power since this will enable them capture larger shares of the market and make more money than if multiple competitors were present in the industry – which is exactly what Apple has done successfully for years now! This case study also serves as an example regarding positive theories which state that firms operating under perfect competition need innovate constantly so they can differentiate themselves from rivals thus gaining advantage over any new entrants into marketplace or else face potential loss in revenue over long run – something again evident here given its ambitious drive towards creating next generation innovative products like iPhone X series etc..