Transcript Diapositiva 1

Market
structure in
Spain
Monopoly
Oligopoly
Monopolistic
Competition
Perfect
Competition
Fixed
telephony
Yoghurt
Production
Television
Chanels
..?
Telefónica
Danone
7 canales
diferentes
¿…?
Monopoly
Economic market in which there is a single
seller or producer to supply a product to meet
the needs of that sector. There should be no
threat of entry of another competitor in the
market. In a monopoly situation firms set a
higher price and offers less quantity. In a
monopoly market is usually called "good
monopoly" when it comes after a
consequence. When the majority of
consumers buy that product of that company
without the influence of no-one and trough
any other interference….Here you are an
exemple of “bad monopoly”, when it is made
by the influence of the government. They
decided to privatize Telefónica and giving
them the enter comunication net in the
country.
Monopoly
1.- Only one seller
2.- Barries to enter in the market
3.- Decreasing demand
a.- Consumers buy when prices are cheaper
b.- Firms produce and sell more “only” when prices decrease
Fixed telephony
Market share 2009
Telefónica:
Ono :
Orange:
Vodafone:
Resto:
78.6%
8.6%
2.6%
2.0%
8.2%
As we see…
1.- Only one seller: Telefónica
2.- Barries to enter : Telefónica has got the entire market in
its pocket, since the government decided
to privatize it in the 80's.
3.- Decreasing demand:
a.- Most people buy when Telefónica offers special prices
for special services
b.- Telefónica produces more when makes special offers at
special prices
Oligopoly
Oligopoly market dominated
by a small number of
producers or distributors or
sellers. An oligopolistic
market may have, on
occasion, a high degree of
competitiviness. Producers
have incentives to work by
fixing prices or sharing of
market segments, often
occur long periods of price
stability. Producers are
limited to compete by
advertising their products
Oligopoly
1.- There are a few producers and a lot of consumers
2.- There are barriers to enter and exit out of the market
3.- Firms choose their on level of prices, Why?
a.- Depending of the market situation they take
differents decisions.Ex.: doing advertising
TV channels in Spain
C Temáticos:
TV1:
TV Privat :
TeleOno:
Antena 3:
Forta:
Cuatro:
La Sexta:
Digital +:
Otras:
Locales:
17.0%
16.4%
15.3%
15.1%
14.7%
13.6%
8.2%
6.8%
4.7%
2.3%
1.3%
Share 2009
As we see…
1.- A few producers and millions of consumers
2.- Barriers to enter: very difficult and expensive to open
a chanel television
3.- Chanel choose their on level of prices
a) When they make publicity for other companies
b) Doing advertisment of themselves
Monopolistic Competition
Monopolistic competition is
defined as a organization of a
market which you can find many
companies that sell similar
product but not identical, thanks
to the differentiation of products,
sellers have some level of prices
charged under control to sell their
product.
Competition is not based on the
prices, but other added values,
such as product quality. The
producers have easy entry and
exit. Advertising industries must
play a very important. The
products despite be similar, not
identical.
Monopolistic Competition
1.- There are no barriers to enter
2.- The product is differentiated
3.- There is a leader which has got a big
Influence in the market. The rest of the companies
follow the leader.
Yoghurt Production 2009
Danone:
Pascual:
Nestle Lactalis :
Dhul:
Clesa:
Otras; hasta
50 empresas:
50.0%
05.0%
04.0%
04.0%
03.0%
34.0%
As we see…
1.- No barriers to enter. There are a lot of companies
2.- The product is differentiated. Who doesn´t know
what is a Danone!?
3.- Doesn´t matter what kind of products offer the rest
Of the firms. All of them are behind Danone.They try to
offer the same of Danone but a bit different in order to
get more customer
Perfect Competition
• Market in which there are many
companies that offer the same
product, so that none of them has an
influence on prices.It is characterized
by the existence of many suppliers and
applicants so that they can not impose
any restriction on price. Perfect
competition, as will be appreciated, it
is then the description of some
existing market but an economic
model which can understand the
functioning of a market economy