Would perfect competition get in the way of brand mixing withtwo companies?

Would perfect competition get in the way of brand mixing with two companies?

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Expert Solution

In the perfect competition the competition level is high. There are large number of buyers are in the market and sell homogeneous product. Producer/sellers and consumers are well are and have perfect knowledge of the market at a time. Demand is perfectly elastic and any incraese in price negatively affect the sales volume and revenue of the firm. So, to incraese the client base and market shere the firms adopts different type of marketing strategy. It helps the firm in creasing sales volume, constomers base and increase customer's satisfaction also. There are different types of strategies taken in use by companies like, Sub-branding, Store-branding, Co-branding etc. Co-branding is a marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance. Through this brand mixing strategy two or more companies or brands come togather for their mutual benefits. Perfect competition get in the way of brand mixing with two companies. You can see this type of brand mixing in credit card and FMGC brands. Still its not popular yet but already got started.

Rahul Sunny answered 2 years ago

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