Market Structures in Sony Corporation Essay Example | Topics and Well Written Essays - 1000 words

Market Structures in Sony Corporation - Essay Example The organization has gained recognition throughout the world following its high awareness of products to the customers. Electronics devices manufacturers such as Sony corporation offer unique quality of various television sets, music systems, and laptops and computers that appeal the customers; hence, with the effective update in technology, management style, the market plan strategies towards existing competition and the corporate goals ensures that the organization is successful and distinguish the company from other similar competitive companies. The process of determining a market structure comprises the research on the rival companies by efficiently exploring their differences and relationships. The features of the market structure affect the routine of the business in the specific market, which has to be appealing to the customer’s needs. There are different market structures used by various organizations, which are based on the number of business participants in the ind ustry and the extent of market control of the involved participants. The market structures include monopolistic competition, perfect competition, and oligopoly and monopoly market structures (O'Connor, 2004). The choice of the market structures in an organization depends on the different characteristics of each type as explained below. The products produced by each of the business are similar to each other; hence, this gives the sellers and buyers the full liberty of joining or leaving the organization options.... The products produced by each of the business are similar to each other; hence, this gives the sellers and buyers the full liberty of joining or leaving the organization. In addition, the buyers and sellers are aware of the prices and technology in use despite the product being produced by a number of companies. Practically, perfect competition does not exist but only forms a benchmark used in the analysis of the real world market structures. The equalization of price and marginal cost through the exchange of quantity goods contributes to efficient allocation of resources (O'Connor, 2004). Monopoly Market Structure Monopoly market structure has a single seller and competitor, who control the supply side of the market. The product sold is unique with no similar substitutes. The demand of the monopoly product translates directly to the market demand hence the need of government regulation because of the insufficiency on market selling side. Monopolistic Competition The feature that dis tinguishes monopolistic market structure from others is the fact that it has a large number of relatively small competitors with each having a modest degree to control the market on the supply side. The products in the market are close for each firm but are not identical in terms of the production technology involved. Consequently, this structure diversifies the needs of the consumer. Oligopoly Market Structure A small number of comparatively large competitors with each having a considerable market control characterize the oligopoly market structure. Sellers under oligopoly have interdependent decision-making leading to high competition, which necessities the cooperation through collusion and mergers. The