MP3 players have dominated the market in a huge way and companies would be ready to pay a handsome amount for some off the basket innovation that would lead their company all the way the top. Any company producing MP3 players faces one of the tightest competitions in the market.
In a monopolistic competitive market the product of different sellers are discerned on the basis of brands. Here the product differentiation given rise to an element of monopoly to the producer over the competing product. As such the producer of the competing brand could increase the price of the product knowingly well that the brand loyal customers are not going to leave them. This is possible as here the products have no effective substitutes. How ever since all the brands are of close substitutes to one another the seller would lose some of their customers to these competitors. In the past many companies have faced the trouble of having a bag full of customers and due to close-fitting .competitors they end up only having a few. Most entrepreneurs fell that fronting their competitors is the toughest part of running a business in a monopoly market. Thus the monopolistic competitive market is a mixture projecting out both monopoly and perfect competition.
MP3 PLAYERS AN EXAMPLE FOR MONOPOLISTIC COMPETITION
An mp3 player is a type of digital audio players that falls under the broader category of pmp devices. It i...
... middle of paper ...
...ily journey.as of these reasons mp3 player have become part of life. Apple has dominated the market in all aspects and will continue to do so until it encounters the tight competition.
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Cisco Systems. Journal of Strategic Information Systems, pp. 11, 5-29.
2. Begg, David. (2002). Economics seventh edition:
Monopolistic competition, pp. 9,123-124
3. Maccormack, A.;Verhanti, R.; Iansiti, M. (2001). Developing Products on
“Internet Time”: The Anatomy of a Flexible Development Process. Management
Science, 47, 1, 133-150.
4. Hamel, G.; Prahalad, C.K. (1994).Competing for the future .Boston: Harvard
Business School Press.
5. Howard Bill (2009); iPod competition available at http://www.pcmag.com;
Accessed on 1.12.2010.
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