Market Model Patterns of Change
Managerial Economics and Globalization
Dr. Moses Polonge
September 8, 2013
Determining if a company lands in the category of oligopoly or monopoly is sometimes a very tough decision to make. There are certain industries in which, the most minor change can bring about various market models due to the consequences that may take place. This assignment will analyze the changes in the market model in the coffee sales industry and also discuss the key points of change within the industry.
Describe the business and explain the general pattern of change of the particular market mode indicating how this change is likely to impact business operations.
The coffee industry or “Starbucks” is the topic of this paper. The coffee business has a key element it considers which is the fact that if the company has a strong interdependence among firms, this results in strategic behavior. Starbucks is a company that that engages in the supply of the majority of coffee that is consumed away from home in the business (Lauren Simonds, 20130). Starbucks company researches and develops coffee with advanced technology, manufacturing and careful processing of the coffee bean. Hypothesize the basic short run and long run behaviors of the model in the business you have chosen in a “market economy”. Provide support for your assumptions and conclusions. There have been many changes in the food services or caffeine services organizations. The coffee shops or coffee cafe’ was completely in control of the market in comparison with the local mom and pop coffee shops and cafés. In the past two years there have been many determined organization, and shops that offer the caffeine experience; however, Starbucks continues to stay two steps ahead of these organizations. Starbucks prides itself on the that individual experience, which allows the customer to ask questions about the different types of coffee and...
References: Monopolistic Competition and Oligopoly; Visit www.prenhall.com/casefair.
Starbucks: A Model of Success; By Lauren Simonds Aug. 27, 2013.
Read more: http://business.time.com/
11 Things Starbucks Does Better Than Almost Any Competitor; Aimee Groth and Gus Lubin July 29, 2011.
Seattle’s Best Coffee; FOODSERVICE ACCOUNT / CUSTOMER Q&A 2011
Caribou Coffee: A strategic analysis of the firm’s internal capabilities; Mark Ried, 2010.
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