Question

1. Provide an example of any two leading companies from the same industry which are competing directly for marketshare. Give a short profile (300-500 words) for each (provide references for your answers).
2. If you are the manager of one of these companies, what pricing policy do you adopt to be in the first position? Why? (100-200 words)
3. When the whole sector of the market is occupied by the little number of big corporations who share the leadership, what do we call this type of market structure? Explain in details the benefit of this market for the leading company and the disadvange of such situation on final consumers (300-500 words)

Note

( please do not answer with handwriting )

( Do not copy the answer from other resources)

( please i want any companies but NOT Hindustan Unilever LTD, P&G
HUL Companies )

(Samsung and apple for example)

Answer 1

Answer:

let,

The example of any two leading companies from the same industry which are competing directly for market share are:

1.Samsung and

2.Apple.

1.Samsung company:

Samsung, South Korean company that is one of the world’s largest producers of electronic devices. Samsung specializes in the production of a wide variety of consumer and industry electronics, including appliances,

digital media devices,

semiconductors,

memory chips, and

integrated systems.

It has become one of the most-recognizable names in technology and produces about a fifth of South Korea’s total exports.

Samsung was founded as a grocery trading store on March 1, 1938, by Lee Byung-Chull. He started his business in Taegu,

During the 1970s the company expanded its textile-manufacturing processes to cover the full line of production—from raw materials all the way to the end product—to better compete in the textile industry. New subsidiaries such as Samsung Heavy Industries, Samsung Shipbuilding, and Samsung Precision Company (Samsung Techwin) were established. Also, during the same period, the company started to invest in the heavy, chemical, and petrochemical industries, providing the company a promising growth path.

Samsung first entered the electronics industry in 1969 with several electronics-focused divisions—their first products were black-and-white televisions. During the 1970s the company began to export home electronics products overseas. At that time Samsung was already a major manufacturer in Korea, and it had acquired a 50 percent stake in Korea Semiconductor.

The late 1970s and early ’80s witnessed the rapid expansion of Samsung’s technology businesses. Separate semiconductor and electronics branches were established, and in 1978 an aerospace division was created. Samsung Data Systems (now Samsung SDS) was established in 1985 to serve businesses’ growing need for systems development. That helped Samsung quickly become a leader in information technology services. Samsung also created two research and development institutes that broadened the company’s technology line into electronics, semiconductors, high-polymer chemicals, genetic engineering tools, telecommunications, aerospace, and nanotechnology.

In the 1990s Samsung continued its expansion into the global electronics markets. Despite its success those years also brought about corporate scandals that afflicted the company, including multiple bribery cases and patent-infringement suits. Nevertheless, the company continued to make advancements on the technology and product-quality fronts, with a number of its technology products—ranging from semiconductors to computer-monitor and LCD screens—climbing into top-five positions in global market share.

The 2000s witnessed the birth of Samsung’s Galaxy smartphone series, which quickly not only became the company’s most-praised product but also frequently topped annual lists of the best-selling smartphones in the world. Since 2006, the company has been the top-selling global manufacturer of televisions. Beginning in 2010, the Galaxy series expanded to tablet computers with the introduction of the Galaxy Tab.

2.Apple company:

Our Apple history feature includes information about The foundation of Apple and the years that followed, we look at How Jobs met Woz and Why Apple was named Apple. The Apple I and The debut of the Apple II. Apple's visit to Xerox, and the one-button mouse. The story of The Lisa versus the Macintosh. Apple's '1984' advert, directed by Ridley Scott. The Macintosh and the DTP revolution.

We go on to examine what happened between Jobs and Sculley, leading to Jobs departure from Apple, and what happened during The wilderness years: when Steve Jobs wasn't at Apple, including Apple's decline and IBM and Microsoft's rise and how Apple teamed up with IBM and Motorola and eventually Microsoft. And finally, The return of Jobs to Apple.

The two Steves attended the Homebrew Computer Club together; a computer hobbyist group that gathered in California's Menlo Park from 1975. Woz had seen his first MITS Altair there - which today looks like little more than a box of lights and circuit boards - and was inspired by MITS' build-it-yourself approach (the Altair came as a kit) to make something simpler for the rest of us. This philosophy continues to shine through in Apple’s products today.

There are three drivers behind Apple's return to revenue growth:

1. iPhone. The average selling price (ASP) of iPhone is up $100 year-over-year.
2. Services. Apple is seeing strong revenue growth from the App Store, licensing, and AppleCare.
3. Wearables. Apple's wearables platform is gaining sales momentum as Apple Watch and AirPods go mainstream.

Services. Apple's second-largest revenue driver, Services, is comprised of five items:

1. Digital content (App Store, iTunes, Apple Music, etc.)
2. Licensing
3. AppleCare
4. iCloud storage
5. Apple Pay

Being the manager of one of these companies,:

Pricing policy to become first:
Price is One of the most important components to become first position . The price is one of the first things that a consumer notices about a product and is one of the deciding factors when it comes to their decision to buy it or not to buy it.
1) As manager if we are planning to set the price above the price of your competitor, then we would need to bring in new features and improvements in your product that justify the increased price.
2.11 We are planning Pricing below your competitors price depends on your resources. If we increase the volume without affecting the production cost to a great extent, then this might be a good strategy for company.. However, there the risk of diminishing profit margin and you might not be able to recover your sunk cost and even face bankruptcy. So, it's really important that you evaluate each step of your competitor while establishing the price for your product.
3. When we set a price equivalent to your competitor, then the differentiating factors ceases to exist. The focus shifts to the product itself, and can offer more features at the same time, it's a win-win for you, and your competitors will fall behind

Monopolist competition:
In case of monopolistic competition buyers get plenty of options due to differentiated products as every product has some additional features
Another advantage of monopolistic challenge is that since various organizations are offering separated items they will in general promote about it through different channels of correspondence which make clients progressively mindful about the different items and their highlights which thus helps the clients in settling on educated choice by contrasting the highlights of different items
It helps in innovation because the only thing which will help the company in surviving in case of monopolistic competition is to constantly add new features to product and hence in a way one can say that monopolistic competition forces the companies to invest in research and development so that the company can produce better quality product at cheaper rates than their competitor.

Disadvantage of monopolist:
The greatest impediment of monopolistic challenge is that because of separated items chances are organizations may charge more than reasonable cost from the purchasers for additional highlights in item
Another disadvantage of monopolistic competition is that companies in order to differentiate their products from other companies add irrelevant features and do not concentrate on improving the basic product which in turn results in consumers paying extra for added features but in reality that feature of product does not result in increase in consumer surplus