Scenario

You have been appointed to work as a Consultant at ABC Corporation Ltd, a

firm providing business consultancy services to organisations both within and
outside the country. Your CEO has delegated to you the job of conducting
strategic analysis for the following four organisations:
1. Car Garagea small company who engage in the reparation and
maintenance of cars. Perfect Competition

2. Fish Marine Ltda major actor in the field of fish and seafood products.
They provide both to local and international markets. They are in view of
issuing their shares on the stock exchange to attract investors into the
business. Oligopoly

3. AMECO MauritiusAn NGO with the mission to combat violence, disease,

hunger, and the chaos of war and disaster. Together, they have the power to
change that. Monopolistic
4. Kelian Institutea new parastatal body specially setup to provide training in
the field of the setting up a small business. The Government is putting
emphasis on this new sector of the economy to boost the economy and
intends to make this sector an economic pillar for the country in the long run.
Monopoly

Determine the type of market structure for the four organisations. Explain how
these structures influence strategies adopted by the organisations.
Perfect Competition
In this market structure we have many buyers and sellers; the price is under
their control as well as demand and supply. It is easy for new business to get in
as it increases the competition. In this type of market structure the consumers
will have identical products with competitive prices, making the market, a
perfect competition. The buyers and sellers need to have a good knowledge of
the market conditions, to be price competitive.

Monopoly
This structure have a unique seller, selling a unique product, the sell has the
control of price and it is difficult to enter this type of market structure. The seller
has the monopoly of the market because they have their own resources and
government licence. The other condition where monopoly occurs is when the
quantity produced is enough to satisfy the demand. Barriers to entry in this

market structure are, raw materials availability, technical expertise, strong

branding and image, legal, transport cost.
Monopolistic
In this structure we have many sellers, selling similar products not identical
product. We have little barriers in this type of structure. The market is almost the same

in this type of organisation and they have a positive profit at start but through years it
consequently diminishes.
Oligopoly
In this structure we can have many firms but a very small number of firms are
controlling most of the market. They can increase their prices and make more
profit as the competition is very low. In this type of structure there are barriers to
get in. The major barriers are the firms controlling the market.
Duopoly
In this structure we have two companies controlling most of the market. They
can have the same impact as the monopoly if the two companies agree on
higher prices.