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Project Monopolistic competition-2

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parinita R
Vidya Niketan School (VNS), Hebbal, Bangalore
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economicseveryday.blogspot.com/2012/10/based-on-this-article-written-by.html https://www.ukessays.com/.../market-leader-in-soaps-and-detergents-industry-marketi... 1. https://www.scribd.com/document/135172160/Monopolistic-Tooth-Paste-Industry http://www.letslearnfinance.com/advantages-and-disadvantages-of-monopolistic-competition.html Monopolistic Competition in the Retail Industry Monopolistic competition is defined as a common form of industry structure characterized by a large number of firms. Therefore no firm can compete based on its size alone. A firm gets its market power by producing differentiated products. New firms can enter and established firms can exit with ease. Implications: It has a small market share Each firm s price can deviate from the average price of other firms by only a relatively small amount. Product differentiation allows the firms to compete between each other in the areas of product quality, price and marketing. . In this competitive market, firms compete with other using various ways and strategies, such as giving out free goodies , increasing discounts, also attacking each other indirectly or directly via commercials and advertisements. These are the ways for the firms to survive in the industry with the pressure from the competitive competition, but are only efficient to a certain extent. Case studies of Monopolistic competition in the FMCG Sector Introduction The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share.

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