Essays on Trading In a Monopolistic Competitive Markets Case Study

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The paper 'Trading In a Monopolistic Competitive Markets' is a great example of a Marketing Case Study. The report reveals business activities and market competition as practiced by PepsiCo. Attention is directed on the US market were PepsiCo has for years developed a massive customer base. The firm is an established producer of snacks partnering with Frito-lay Company. Our focus is on the firm's business competitiveness in the US market, in particular the report focuses on the firm's business practices on soft drink products. PepsiCo produces and supplies Pepsi-cola beverages in the US market among other countries, this brand has gained an increasing rivalry from other brands in the market with Coca-cola being the potential rival, particularly in the US market. The firm is placed in a market where three features can best explain for market completion it is involved in.

these includeThe market creates the possibility of firms to freely enter and leave the marketTheir several firms in this marketProducts in the market are differentiated by the use of brands. Products in this market are typical substitutes for other firm’ s products.

A good example is revealed in products such as Coca-cola which is supplied by Coca-Cola Company while Pepsi Company supplies a similar product identified as Pepsi-cola (Pindyck, 2001). In addition, the report reflects on issues of Pepsi-cola battle in the market against other brands both in the short term and in the long run suggesting possible effects on the product demand, supply, and pricing among other related measures. In the report, we discuss micro-economic characteristics as identified in a monopolistic competitive market as PepsiCo products are placed in this form of market. Pepsi Company is among the most successful consumer product firms in the world.

The firm is said to have 2000 revenue sources generating estimated sales revenue of over $ 20 billion annually. The firm consists of Frito-lay Company, one of the established producers and suppliers of snacks particularly chips (Cline, 2005). The firm has an estimated employee workforce of about 125,000. Pepsi Company is also reported to be the second-largest soft drink business and Tropicana product, the largest dealer and producer of branded fruit drink. The firm's brands are among the top known and respected across the globe and are available in about 190 countries worldwide.

Pepsi bottling Group for instance is among the world’ s largest known producer sellers and suppliers of Pepsi-cola beverages.

References

Bibiliography

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Southern Economic Journal , Vol. 64:(3), pp.772-779.

Cline, A. D 2005, A Consumer Behavior Approach to Modeling Monopolistic Competition.

ournal of Economic Psychology , 26 (6): 797–826.

Goodwin, N. N., & Ackerman, F 2009, Microeconomics in Context 2d. Sharpe, London.

Hemphill, T. A 1994, Beyond Competition: The Economics of Mergers and Monopoly Power,

Southern Economic Journal .

Holt, C. A 1996, Trading in a pit market. Journal of Economic Perspectives, 10(1): 193-203.

Laury, S. K 1999, Multi-market equilibrium, trade, and the law of one price. Southern Economic

Journal , 65(3): 611-622.

Perloff, J 2008, Microeconomics Theory & Applications with Calculus. London: Pearson.

Pindyck, R 2001, Microeconomics 5th ed, Prentice-Hall, London.

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