The two leading competitors that I will evaluate is Stouffers and Birds Eye. In this paper, I will outline the effectiveness of each company market structure operations. Next, I will determine two factors that have caused the change within Stouffers and Birds Eye. Next, I will examine the manner of such change that would likely impact operation in both business operations in the new market environment. Then I will analyze the short run and long cost functions for Stouffers and Birds Eye. By providing suggestions on ways in which the low-calorie food industry can decide and implement the information on both the short & long run.
Then give key actions that management should take to confront or discontinue operations for the company. I will evaluate…show more content… The relationship between price and consumer preferences is product substitutability and level of advertising (McGuigan, Moyer & Harris, 2014, p.352). One primary factor when it comes to low-calorie frozen microwaveable food market is oligopoly market structure. Oligopoly is a “market with few closely related firms. The number is so small that any change in the company price, product style, quality, and terms of sale, have a noticeable impact on the sales of other firms in the industry” (McGuigan, Moyer & Harris, 2014, p.352). The top three companies of many in the low-calorie frozen microwavable industry are Healthy Choice, Weight Watchers and Birds Eye (Fleming,…show more content… According to McGuigan, Moyer & Harris (2014) short run is A firm within a “competitive industry may break even or operate at a temporary loss in the short run” (p.352). On the other hand, long run consist of a competitive market and cost will be equal to price, and profits will be eliminated. The company can use this data for price and begin to change the maximum price. If the price is not the maximum price, the company should take required steps to reduce the price to make them consumer friendly. The company, in the long run, can expect sales increase if their prices (McGuigan, Moyer & Harris, 2014, p.352).
If a company should decide to discontinue operations, one factor could be reasons the inability to competing with competitors with prices and inadequate funding. Another factor could possibility be a lack of consumer preference, supplies, lack of competition, and lack of capital. However, if a company wants to stay in business and profitable, they must know the competitors’ products and prices. If a company was to do the proper research analysis on their competitors which is essential to remain profitable to ensure that the company has more than one supplier, just in case one goes out of business the company has a backup provider for their needs. Lastly, the company must have a stable amount of capital to stay in the with the game with competitors. This equation shows 160,000,000/159,096.353 + 100 + .00632212 (159,096.353) =2011.36 cents=