MICRO-ECONOMICS CIA

ON
MONOPOLISTIC COMPETITIVE STRUCTURE
OF THE SMARTPHONE INDUSTRY

SUBMITTED BY:
HARSHIT KUMAR GUPTA (1923334)
KHUSHI AHUJA (1923353)
MUSKAAN SARDANA (1923357)
YUKTI HANDA (1923373)

Types of Market Structures

• Perfect Competition - The perfectly competitive market structure is a hypothetically perfect
market where the entry and exit of companies is free, such a significant number of organizations
move into the market and effectively leave when it's not beneficial. With such humongous
numbers of contenders, the impact of one organization or purchaser is moderately little and
doesn't influence the market all in all.

• Monopoly - Monopolies and perfectly competitive markets are at either end of market structure
limits. Be that as it may, both limit cost and boost benefit. Where there are numerous rivals in
an ideal challenge perfect competition, in monopolistic markets there's only one provider. In
such a kind of market there are high boundaries to entry into this market leave a "mono-" or
solitary organization standing so there is no value rivalry. The provider is the value creator
ie.price setter, setting a value that expands benefits.

• Oligopoly Market Structure - Not all organizations mean to sit as the sole structure in a market.
Oligopolies have organizations that plot, or work together, to restrict rivalry and command a
market or industry. The organizations in these market structures can be enormous or little, in
any case, the most dominant firms frequently have licenses, money, physical assets and
authority over crude materials that make hindrances to passage for new firms. Since this market
structure demoralizes genuine challenge, the makers can set prices, yet the market is price
delicate. On the off chance that the costs are excessively high, purchasers will relocate to the
market's item substitutes.

• Monopolistic competitive - It is a market structure which joins components of monopoly

business model/ market and competitive markets. Basically a monopolistic competitive market
is unified with opportunity of entry and exit, yet firms can differentiate their goods. Along these
lines, they have an inelastic demand curve thus they can set prices.However, on the grounds that
there is freedom of entry, supernormal profits will urge more firms to enter the market
prompting normal profits in the long run.

Mobile / cell phone / smartphone industry -

The smartphone industry comes under Monopolistic competition type market structure.
The cell phones market is a good example of the monopolistic completive market because each firm
is trying to differentiate their products by making their phones unique or special. The examples are
iPhone 11 PRO and Samsung Galaxy S10. Both products use the “Physical product differentiation”,
where firms use size, design, colour, shape, performance, and features to make their products
different. And then the firms use the “marketing differentiation” such as promotional technique
or/and packaging to attract the consumers. As we can see that the production of cell phones is
highly technologically dependent however there are no entry or exit barriers in the market. The
consumer demand is allowing manufactures to generate additional profits in the short run while
their competitors develop matching products. And eventually the profit and demand is derived in
the long run according from new products with better technology has entered the market

The mobile phone organizations will in tend to have the generation wastefulness (production
inefficiency) since they can never completely exploit their fixed factors prior building up the new
item. That is on the grounds that they should maintain the advancement in control to keep their
preferred position and their super normal profit at the same time with their uniqueness.

A one of a kind, unique element of a monopolistic competitive market is that there are product
differentiations

Objective of product differentiation and promoting/advertising (non price rivalry) is to make price
to a lesser extent a factor in customer purchases and make product differentiation a more
noteworthy factor.

An effective commercial or advertisement would shift the company's demand curve to right and
make demand increasingly inelastic.

Since monopolistic competition of the mobile phone market depends on creating differentiated

products in the brain of customers. The monopolistic competition must take part in the promoting or
advertising.The effective promoting basically carries the item uniqueness to the buyer's intention
and drives the organizations' revenue and income.

Diagram monopolistic competition short run

In the short run, the diagram for monopolistic competition is the same as for a monopoly.The firm
maximises profit where MR=MC. This is at output Q1 and price P1, leading to supernormal profit

Monopolistic competition long run

• Demand curve shifts to the left due to new firms entering the market.
• Over the long haul, supernormal profit urges new firms to enter. This decreases demand for
existing firms and prompts normal benefit.
• Effectiveness of firms in monopolistic competition
 • Allocative wasteful & inefficient - The above graphs show a price set above marginal cost
(peripheral expense)
• Productive wastefulness &inefficiency - The above graph shows a firm not producing on the
absolute bottom ie. the lowest point of AC curve
• Dynamic effectiveness. This is conceivable as firms have profit to put resources into and
invest in innovative work and R & D
• X-effectiveness. This is conceivable as the firm faces serious competitive weights and
pressure to cut cost and give better goods an products

The organizations can confine the stock and supply (creation and number of items disseminated in
explicit territories) and in this manner can set the price high which regularly at the Max Price when
the primary dispatch in the market. At the point when the Samsung Galaxy S10 was discharged it
cost about $139.00 beyond what you can get it at a store today. This is essentially in light of the fact
that when it initially went into the market, the benefit augmentation ie profit maximisation is
MC=MR. The buyers showed willingness to pay a high price which made the AR be above ATC
and MR. Also, over the long haul Samsung lost their upper hand because of it is simple for
contenders to create substitutes.

Features of monopolistic competitive market

• Numerous organizations.
• Opportunity of entry and exit.
• Firms produce differentiated products
• Firms have price inelastic demand ; they are creators of price in light of the fact that the
product/good is highly differentiated
• Firms make normal profit over the long term however could make supernormal profits for the
time being ie short run
• Firms are allocatively and productively wasteful and inefficient
• Autonomous and independent activity
• No collusion (agreement)

Attributes

Markets which are monopolistically competitive have the following attributes :

1. Each firm settles on choices which are independent about price and yield, in light of its item, its
market, and its expenses of generation.

2. Knowledge is broadly present for each of the participant which creates competition.
For instance, we know about the menus of al the restaurants and cafe before our choice is made, we
as customers can view the menu again before giving the order, however we don't appreciate without
trying first.
The business visionary has a more critical Job than in firms that are flawlessly serious on account of
the expanded dangers related with basic leadership.

3. There is opportunity to enter or leave the market, as there are no significant obstructions to
passage or exit.

4. A focal element of monopolistic competitive is that items are differentiated. There are four
primary sorts of separation:

A. Physical differentiations, where firms utilize size, structure, shading, shape, execution, and
highlights to make their items extraordinary. For instance, shopper hardware can without much of a
stretch be truly separated.

B. Marketing separation, where firms attempt to separate their item by particular bundling and other
special methods. For instance, breakfast oats can without much of a stretch be separated through
bundling.

C. Human capital differentiation, where the firm makes contrasts through the aptitude of its
representatives, the degree of preparing got, particular regalia, etc.
Differentiations through distribution, including dispersion by means of mail request or through web
shopping, for example, Amazon.com, which separates itself from conventional book shops by
selling on the web.

5.Firms are price makers and are confronted with a descending slanting interest bend. Since each
firm makes a one of a kind item, it can charge a sequential cost than its opponents. The firm can set
its own cost and doesn't need to 'take' it from the business all in all, however the business cost might
be a rule, or turns into a requirement. This additionally implies the interest bend will slant
downwards.
6.Firms working under monopolistic competitive as a rule need to participate in promoting. Firms
are frequently in furious challenge with other (nearby) firms offering a comparable item or
administration, and may need to publicise on a neighbourhood premise, to tell clients their
disparities.

Marketing Mix of Oppo

Product:

The product strategy and blend in Oppo marketing strategy are often explained as follows:

Oppo might be a main Chinese customer organization which has step by step assembled a powerful
notoriety with its items around the world. Oppo produces scope of cell phones, Blu-beam players,
earphones and speakers as an area of its item portfolio in its showcasing blend. In Oppo cell phone
division, its essential crowd has been the youthful female customers for whom Oppo has
manufactured too thin handsets with some appealing highlights to suit their needs and necessities
like pivoting cameras, duel selfie and so on to improve the 'selfie' taking experience for them. They
have attempted to separate their cell phone from the rest of the accessible items from different
contenders by imparting through different channels that they're the 'selfie master' inside the market.
Further they think showcasing research and include made enhancements inside the battery likewise
to handle a major issue looked by the buyers of quick battery channels from overwhelming use by
presenting streak charging innovations. Other shopper hardware are showcased under Oppo Digital
division and produce their own arrangement of sound and video decoders for their top of the line
items.

Pricing

Below is that the pricing strategy in Oppo marketing strategy:

Oppo items are available to take into account differed client necessities from top of the line to low
end sections. Despite the fact that it's charging medium to significant expense for its items it's
despite everything keeping the expenses of its cell phone items lower when contrasted with its
rivals, for example, Samsung, LG, Apple and so forth to draw in the shoppers towards its items by
offering great quality items separated as far as camera quality at a reasonable cost. In this way,
really , it's utilizing an infiltration valuing procedure in its advertising blend for its items to ask a
greater piece of the overall industry. On the contrary hand, Oppo computerized items are advertised
as premium items to acknowledge piece of the overall industry inside the North America with their
earphones costing $399. Further the cost of the items charged are diverse in North America and
Europe with items costlier in Europe than in North America. In this manner, the Oppo Global which
is that the cell phones division serves the middle to low-end sections while the Oppo Digital serves
the very good quality portion with its items.

Promotion:

The promotional and advertising strategy within the Oppo marketing strategy is as follows:

Oppo centers broadly around advancing itself as an overall brand and pays attention to its PR very
and has received a geo-limited system for its image advancement and utilizations neighborhood
abilities for VIP supports of its items. If there should be an occurrence of India, Oppo has gained
rights to support Indian national cricket crew for the term of 2017-2022. Oppo is moreover a
government official accomplice of the Spanish football club-FC Barcelona. Further, since it utilizes
a multi-household procedure it utilizes distinctive promoting specialized techniques steady with
different districts. As just if there should arise an occurrence of Oppo India, it contracted on-screen
characters like Hrithik Roshan and Sonam Kapoor as their image represetatives for advancing their
items in India. On the contrary hand, for Oppo advanced items, the brand doesn't accept the forceful
showcasing systems utilized for its cell phone business since it is taking into account a truly
specialty section of clients in those classes. This gives an understanding inside the Oppo
showcasing blend.

Marketing Strategies and strong reasons for its fantastic success

The company has decided to promote its products through aggressive marketing strategies. The
company has used some extension methods too. Some of the most popular reasons for its
tremendous success are:

1. Using the Internet as an effective promotional tool

Oppo has utilized different web based business destinations to advance its versatile items. It has
likewise utilized web-based social networking channels to elevate its image to the more youthful
age. It has adequately brought together the disconnected and online methods of item advertising to
increase a solid client base for its items.

2. Exclusive customer base:

Oppo appreciates a solid client base who is the supporters for the brand. The versatile business is
blasting with new players and it is essential to locate a dependable client base. Oppo is a selfie
master telephone and it has utilized it viably to advance its image. Oppo is utilizing these strategies
sensibly well to create a responsive and solid client base.

3. Strong recall brand value

Oppo as a brand appreciates a solid review esteem and is very popular for cell phones and
embellishments. The brand is well known in India and outside appreciates a more profound
entrance of clients and a more grounded market nearness. The clients are likewise ready to
effortlessly relate to the brand and settle on their choices.

4. Total Control on everything

Oppo keeps absolute control on nearly everything in the market. It has its own stores to monitor
everything that is going on. It sells most parts and frill from its own stores. The organization
oversees and controls the whole circulation channels from marking, selling, and making telephones
without anyone else's input. It makes them sell telephones through cultivating creation outlets. The
organization additionally gives liberal motivators to every one of its representatives with the goal
that they can continue performing better.

5. Conveying the best quality

The brand justifies itself with real evidence and Oppo is known to convey the best quality cell
phones to its end clients at a sensible cost. They have a solid brand worth and produce certifiable
items at a mid-run cost.

6. Decisive pricing strategies

The brand has viably strategized their estimating and showcasing plans to incorporate all segments
of society. They make sturdy items for their clients and have low to high section item classifications
which makes it simpler for the client to choose the items as per their value go. Oppo makes popular
and imaginative plan thoughts to make items. Subsequently, it builds their overall revenues and
makes them remain in the challenge.
7. Offering variety in their products
Oppo is one of the main brands in India and thusly they have distinct showcasing approaches. They
make items for different classes and have a significant amazing number of cell phone ranges. This
wide item go has helped them to remain ahead in the challenge. They additionally offer wedding
and sedated shoes.

8. The long chain of distribution channels

Oppo has a solid appropriation channel and has a solid vendor connect with its own shops in and
around the nation. It has a committed deals group which helps in conveying and showcasing its
items.

9. Campaigns
The crusade methodology of the brand is centered around its innovation. It has accompanied
imaginative plan arrangements and has scored numerous firsts on its excursion. The ongoing
catchphrase catch the genuine excellence is the pointed am featuring the assorted social legacy of
Singapore. The masterful style of Oppo telephones is really attractive and shoppers will welcome
the excellence of the evening time. The Oppo battles are intended to catch the urban excellence and
need to grasp the young through its crusades. Big names like Leonardo Di Caprio brush the lit up
phases of Oppo.

Innovations of Oppo

A brand that qualities mechanical advancement and quality more than everything else—we are
discussing none other than OPPO. The tech goliath as of late held its OPPO Inno Day at its central
command in Shenzhen, China, spreading out the modern contributions it has coming up for its
purchasers. Exhibiting a scope of cell phones, earphones, brilliant watches, and AR glasses, this
introduction was tied in with breaking boundaries through innovation.

At the Inno Day, OPPO exhibited the idea of savvy network which comprised of four key parts,
including the union of innovation and administration, the union of association, the union of culture
and the union of innovation, expressions and humanities.

Significant center was given to the execution of 5G through three key variables: staying focused on
their center innovation, making a multi-entry eco-arrangement of wise gadgets with cell phone
looking over as the key portal and reevaluating client administration to streamline its substance and
administration contributions.

A brand that has 40,000 workers in 40 nations with six research foundations and four R&D focuses,
OPPO runs in excess of 150 tests its cell phones before they reach to the customers. This directs a
severe adherence to quality, yet in addition an affinity for making a definitive client experience for
many its purchasers around the world.

Inside the main 5 cell phone marks on the planet, OPPO shared some energizing declarations on the
development behind its headways in versatile innovations in 2019. Appearing a world-first 10x
lossless zoom innovation and industry driving improvements in 5G innovation, OPPO is solidifying
its notoriety for being a pioneer in the portable interchanges space.

The OPPO brand takes motivation from the astounding conceivable outcomes of the consistently
and in helping individuals to understand the magnificence that is around them. Driven by customer
experiences, OPPO has been putting vigorously in advancement with an immense promise to R&D.
It is this dedication that causes OPPO to create industry-first advancements over and over, be it
through picture beautification innovation, 5G, AI, AR/VR or other rising versatile advances

The Marketing Mix of VIVO-

Product:

The item methodology and mix in vivo showcasing technique are regularly clarified as follows:

Vivo might be a main cell phone and shopper gadgets brand. Vivo targets giving quality items and
better administrations in its promoting blend than its clients. Vivo positions itself as a perfect selfie
cell phone and in this way claims to the young. They have practical experience in presenting items
that have learned sound framework , extraordinary appearance and supply quick and smooth client
experience. The Vivo brand has faith in receiving inventive and imaginative innovation to supply
new items. inside the year 2012, it presented the X1 which is that the first cell phone to incorporate
a Hi-Fi chip which gives an unrivaled sound encounter. This element has been incorporated by and
large their cell phones ever since.It has entered the Indian market inside the year 2014. Vivo is
positioned among the most elevated 10 cell phone producers inside the world.
Pricing

Below is that the pricing strategy in vivo marketing strategy:

Vivo offers top quality telephones at reasonable and serious costs. Vivo as a brand understands
some of its business sectors are value delicate market when it includes the offer of cell phones and
it's essential to be available inside the correct value band to have the upside of increasing a solid
piece of the pie. Henceforth, Vivo has made its items accessible inside and out the value groups, yet
additionally inside the groups that have the most extreme commitment towards the general deals.
Inspite of this, the results of the brand are estimated a touch higher when contrasted with
comparable items offered by other contending brands. For the most part serious evaluating
procedure is utilized in its showcasing blend. The significant expense of Vivo items is because of
the measure of highlights the telephone offers, the plan and style of the piece, the battery life, the
camera quality, execution and along these lines the sound and video quality likewise . Nonetheless,
an outsized number of customers are persuaded to look for Vivo items inspite of the significant
expenses on account of the great after deals administration that the brand offers. Not simply this,
vivo offers greatest highlights likewise as administrations when contrasted with the contrary brands.
However, numerous buyers additionally are of the view that Vivo must build its incentive for cash
for its purchasers by improving details in some value sections, particularly the low-value groups to
additionally improve its positioning inside the Indian market.

Promotion:

The promotional and advertising strategy within the Vivo marketing strategy is as follows:

Vivo is very proactive when it includes publicizing and advancing its image. Vivo grasps a 360
degree advertising procedure and advances its items through different ordinary and customary
mediums like ATL, BTL, medium , TV plugs, internet based life, big name supports and on-ground
exercises. It centers extraordinarily around its on-ground exercises which it considers as its most
grounded preferred position in China additionally as in India. It additionally centers around out of
home publicizing to a legitimate degree. In 2016, in India, Vivo distributed Rs.200 crore for
advancing their image during the Indian Premier League (IPL) season 9. It supplanted PepsiCo on
the grounds that the title supporter for the IPL. The brand has likewise roped in Ranveer Singh as
their image represetative, who stars in their business and discusses the new Vivo V3 and its
relationship with IPL. Vivo has additionally connected with Times OOH to show its new cell phone
on their Mumbai metro media. the idea behind marking on Metro was to catch the mind space of the
youthful urban people who might be an ideal mix of well informed and esteem cognizant shoppers.
This finishes up the promoting blend of Vivo.

Marketing strategies and reasons behind its success

1. Variation within the range of products

Vivo consistently organized on creating of the gadgets whose particulars will be remarkable when
contrasted with other mainstream brands. because of the expanding request of the buyers for fresh
out of the box new details and consequently the look, the brand consistently organized on giving
special highlights and dazzling looks to each single model of Vivo.

Indeed, even the value point was made all together that everyone can manage the cost of their items.
some of the nearby contenders of Vivo like Xiaomi, Oppo, Samsung additionally brings gadgets
which have stunning details yet with a significant expense go. So Vivo gets items by keeping mind
the necessities and needs of the buyers .

The brand consistently offered significance to improved determinations, better battery life and
construct quality which an individual for the most part searches for while purchasing a cell phone.

2. Priority on choice, quality, and budget

In spite of the fact that gratitude to the innovation headway individuals have thoughts on what very
details a cell phone must have and other urgent things related with the cell phone showcase. Yet at
the same time, there are a large number of us who are totally oblivious during this field. There are
numerous neighborhood brands which endeavor to duplicate the structures and consequently the
highlights from the market and nitwit the individuals by charging high for those gadgets. during
thusly, these neighborhood brands endeavor to deceive clients.

Since Vivo has gotten very mainstream inside the market on account of its select highlights and
forceful value point, the buyers started to confide in the brand. This procedure helped in keeping up
and featuring the qualities of the brand.

3. Idea of market
It is would be moral to make reference to that people aren't interested about cell phone gadgets
which are going to the market. in order to deal with the expanding request and subsequently the
assurance of satisfying them, the corporate has constantly attempted to deal with itself with the up
and coming innovation and improved highlights. This specific system helped the corporate in
gaining the religion of the individuals. This aided the corporate in getting famous among the cell
phone advertise.
4. Campaign
In the matter of publicizing and advancement, Vivo has consistently been dynamic. it's obtained the
360-degree system for showcasing likewise on the grounds that the advancement of its items with
the help of different ordinary and conventional medium which are ATL, BTL, medium , TV
commercials, and furthermore VIP supports.

The on the base movement of the brand has made it well known in China likewise as India. During
the year 2016, the brand paid 200 crores for the point of advancing its image inside the Indian
Premier League.

The brand additionally brought some of the well known VIP faces from the business like Ranveer
Singh and Aamir Khan for the advancement of the brand. Likewise, they drew in with Times OOH
for the point of showing their cell phones on Mumbai metro media. the idea behind the system was
to snatch the eye of the urban populace who are impeccable well informed likewise as cost
cognizant purchasers.

The cell phones of the brand include increased extraordinary prevalence inside a few years inside
the cell phone industry with time on account of its promising highlights, shocking plans and cost
extend. In this way the corporate turned out to be amazingly well known inside the worldwide
market.

Cell phone producers are during a consistent race to be the essential to supply driving edge
highlights. While most makers will in general follow patterns, just two or three lead the pack in
setting new patterns. Among such pioneers is Vivo. inside the previous a long time since the
corporate has entered the India showcase.

Innovations
Vivo has continually positioned itself as an innovative brand that has focused in providing some
very notable firsts - from the world’s thinnest smartphone to the In-Display Fingerprint Scanner and
Pop-Up Camera.

It claims it’s smartphones to be thinner than the most.When smartphones are talked about, the the
thinner it is the better it gets.In 2014, while the rest of the companies and manufacturers were still
striving to create slim smartphones, Vivo took the lead with the Vivo X5Max. The smartphone held
an impressively large, 5.5-inch FHD Super AMOLED display and exhibited even more outstanding
looks when looked sideways.The smartphone was only 4.75mm thick which made it the World’s
Thinnest Smartphone. 

Vivo came out with the in-display fingerprint sensor in 2018.As individuals began to get
increasingly worried about land regarding show size, bezels continued getting more slender and
more slender. Before long, there sufficiently wasn't space to oblige a unique mark sensor on the
facade of the gadget. In 2018, while numerous makers decided to move the sensor to the back, Vivo
moved it under the showcase. This component was no simple undertaking as this implied the sensor
would need to peruse the finger print precisely from behind the display. The Vivo X21 was the first
economically accessible cell phone to include an in-show unique finger impression sensor.

Vivo is a brand famous for it’s camera, particularly selfie camera among it’s consumers.It came up
with the concept of POP UP selfie camera.Shaving off the bezels implied that producers were
coming up short on space to put the front camera. Most cell phone producers decided to put the
camera inside a score that lived over the showcase. While this seemed to offer a higher screen-to-
body proportion when contrasted with customary telephones, the structure was not to everybody's
taste. Vivo, with the Nex, changed what we looked like at cell phones without a front camera on the
edge of the telephone, with the 'Spring up Selfie Camera'. This inventive methodology brought
about a camera that remaining parts concealed when not being used and just springs up when called
upon. This implied clients had the option to appreciate content on their screens in a significantly
progressively vivid manner, without an indent obstructing any piece of the presentation.

Another innovation was it’s sound casting technology.Vivo not only debuted with the pop up
selfie camera with it’s NEX smartphone but also with it’s new sound casting technology.Instead of
using the usual and ordinary ear-piece for offering sound, the whole display(screeen) of the phone
was converted into a speaker. The phone vibrated the screen itself for production of sound.
Last but not the least is 5G.On the hardware side, within smartphones, tons of investments are
happening in 5G.Vivo is putting a lot of investment and focused attention on 5G.