Question

Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.

Answer 1

In the real world we can see most monopolistic competition rather than perfect competition and monopoly.in monopolistic market all the firm produces close substitute goods.let us consider the India mobilephone industries.here micromax is a indian 'company which compete with large chinise brands like xiaomi,samsung,oppo and other.all those companies are business gaint in smartphone industries.in few year past micxomax was doing great jobs in Indian market before coming those chinise multinational brand.but when thoae multinational brands introduce themselves to India the decline on micromax starts.as those chinise companies are so big and they provide top line specifications at much cheaper prices.they uses advanced technologies and produces in china in such a lower cost but this facilities aren't available to micromax.so for these micromax finds it difficult to hold its market.so then micromax started to shift to the offline market.and they started to make more features phones rather than android phones.in the India most of people are not comofortable with online shopings and many villages and many places aren't connected with internet.micromax focus on those markets as multinational companies focused mainly in online and ignores those markets.and micromax also starts making entry level smartphones for the first time andriod users.it means micromax shifts to those sectors which are left behind by those multinational chinese companies.nowdays the anti-china sentiment grown among indian due to indo china war.so micromax tries comback.