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Research Project Starbucks Assignment

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1. Introduction

 

Deciding and implementing market structure has been found crucial for any business to be well established. The conducted study will focus on the analysis of concerned market structures of monopoly, oligopoly and also duopoly, in Australia. This study has intended to consider the businesses and the market structures of Starbucks and Samsung. This will also evaluate the issues with respect to Macroeconomic Theory and Microeconomic Theory.

2. Interested Bodies and Reason

 

In the context of monopolistic market structures, Starbucks has been found in making themselves different from other existing beverage suppliers in Australian global market. It has been known from the words of Leigh & Triggs (2016), being different in monopoly market attracted a huge customer base for an industry.  It can be seen that Samsung has found interest in oligopoly market structure. As per the statements of Holmes & Star (2018), oligopoly market structure is able to detect the areas of a business, which need to be developed in terms of competencies. According to the market penetrations of Samsung in Australia, it can be said that Samsung has implemented duopoly market structure. From the words of Devin & Richards (2016), it has been known that duopoly market has the ability to bring challenges with the complement of competitive edge.

Issues

Monopolistic market structure has been seen unable to bring competition, which refers to no challenges in the market. This implies that a business cannot find its growth needs in a monopoly market (Yamey, 2017). In oligopoly market structure there can be found two or more industries with identical products. As per the words of Taylor & Tyers (2017), oligopoly market has the tendency to bring conflicts in the market. Furthermore, from the statements of Matsumura & Tomaru (2015), it has been known that duopoly market structure has been found with the issue in which the key players claim that has been taken by the policyholder in cognizance of implemented market structure.

3. Economic Analysis

 

With the help of monopolistic market structure, Starbucks has acquired a higher level of competitive advantage. As per the words of Hurst (2015), it can be said that higher competency of an industry has the ability to bring sustainability so far, in a monopoly market of. From the words of Cato, S., & Matsumura, T. (2015), it can be said that oligopoly market brings higher level of competition. This helps the industries to find the weaknesses as well as the threats for the respective industry. This literally leads the industry for further growth. In the context of duopoly market structure, it has been seen that duopoly market brings the industries to face challenges and also helps in finding the requirements for developments (Folland, Goodman & Stano, 2016).

4. Issues according to Economic Theories

 

Microeconomic theory and Macroeconomic theory have reflected on the issues of various market structures. As per the words of Becker (2017), it has been known that with respect to Microeconomic theory an industry can develop greater solution for price mechanisms. Analysis of demand as well as supply can be identified with the help of Microeconomic theory. This also has the ability to identify the risks and the opportunities of an industry in terms of market competition and the level of profitability. Microeconomic theory has also reflected that monopoly market structure has been considered as the opposite terms of perfect competition. This is because there are less of opportunities to find the challenges for further growth.

According to Macroeconomic theory, it can be said that oligopoly market structure has been considered to be the semi-perfect competition market for the respective industries. However, Macroeconomic theory says that oligopoly market has the tendency to bring conflicts at the time price fluctuations of an industry for identical products.

Duopoly market structure has been known as the perfect competitive market for an industry in both the Micro and Macroeconomic Theories. As per the words of Becker (2017), it can be said that there is the provision of growth and also for the respective operating industries. According to the Microeconomic theory, it has been known that duopoly market structure can bring long-run sustainability as well as the competitive edge for the respective industries.

5. Recommendation for Policy Holders and/or key Players

 

Monopolistic market structure has been seen unable to bring competition, which refers to no challenges in the market. This implies that a business cannot find its growth needs in a monopoly market. To mitigate this issue, the key resources of the respective organisation can adopt oligopoly too for further growth of the industries. This will also help the key resources of the market in proper implementation of the claims in the respective markets.

In oligopoly market structure there can be found two or more industries with identical products, in a market which leads to perfect competition for the respective industries. Oligopoly market has the tendency to bring conflicts in the market. Furthermore, it can be said that duopoly market structure has been found with the issue in which the key players claim that has been taken by the policyholder in cognizance of implemented market structure. Therefore, it can be said that duopoly can be the perfect market structure for any business in the operating markets. Duopoly market structure helps industries to achieve a higher level of financial image in the market.

6. Conclusion

 

This study has reflected on the businesses and the market structures of Starbucks and Samsung. The conducted has derived an analysis of concerned market structures of monopoly, oligopoly as well as duopoly, in Australia. In this respective study, the issues in terms of Macroeconomic Theory and Microeconomic Theory have been evaluated. A recommendation has also made for the policyholders as well as the key players of the respective operating market. This study has intended to consider the businesses and the market structures of Starbucks and Samsung along with scopes and challenges.

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