Submitted by: Submitted by kwgasque8460
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Category: Business and Industry
Date Submitted: 04/13/2015 08:51 AM
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie food company operates.
By viewing some of the computations in assignment 1, we can rule out several market structures simply because of the elasticity of advertisement. In fact, according to the other computations from assignment number 1, the market structure for which low-calorie microwavable food companies operate would have to be oligopolistic. The market structure oligopoly is defined as one in which in which the number of firms is so small that the actions of any one firm are likely to have noticeable impacts on the performance of other firms in the industry. (Halbert, T., & Ingulli, 2012) The control over the supply of low-calorie food products is held by a small number of producers who can influence price and therefore directly impact the competitors’ position. Low-calorie food product companies are the entire time, price competing as well as competing in the areas of advertising in an effort to dominate the market.
Use the Internet to research two (2) of the leading competitors in the low-calorie microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Two of the leading competitors in the low-calorie microwavable food industry are the Heinz Company (Weight Watchers/Smart Ones) and Nestle (Lean Cuisine). Weight Watchers / Smart Ones of course use a point system to help their customers control the intake of their daily diet while Lean Cuisine are not so specific. Both companies have accomplished market recognition by way of advertising. In fact, Smart Ones teamed up with one of the most recognizable weight loss companies in the world, Weight Watchers and have increased sales tremendously since. With their oligopolistic marketing style, both companies compete by using pricing strategies to win the business of the other company’s...