College or university Pricing Approach The term market structure refers to the characteristics in the market. These types of characteristics can be competitive or perhaps organizational qualities, or any other characteristics, which can best be taken to describe companies and goods market (Solow, 1998). Key characteristics that for very long have utilized by economists within their attempt to illustrate the market constructions include the function of prices, as well as, the size of competition for the reason that given industry. On the other hand, the marketplace structure can be described as the quantity of firms in a given market engaging in the production of identical services and goods (Solow, 1998).
Undoubtedly, the market structure has a huge influence for the behaviour of firms on the market. This is because this affects the retail price at which various firms provide their products on the market. For instance in the competitive marketplace, the sector has the only duty of setting the purchase price while the businesses are price takers. The marketplace structure includes a tremendous effect on the supply of goods and companies in the market (Solow, 1998).
The University of Phoenix can be classified under a competitive marketplace structure that is sometimes referred to as monopolistic market structure. This is how there are a many firms where each of the companies commands a small portion of the market share. In addition , this kind of firms offer slightly differentiated products.
This is certainly a typical industry structure in which the University of Phoenix competes. This is because a large significant quantity of universities exactly like Phoenix which offers slightly differentiated products. Therefore , the existence of many universities with products which have been slightly differentiated makes this market a typical monopolistic market composition. The demand curve in a monopolistic firm is normally highly stretchy though certainly not perfectly elastic.
This implies that the slight difference in price is very likely to attract a substantial number of students in the School. This is because the institution are operating in a market in which products have got a close replacement. There are a number of ways through which the College or university of Phoenix may differentiate its products as a result of the rivals in the market. One of the ways would be to give unique products and services such as length education. Supply of exceptional products is one of the ways whereby the College or university can separate its products through the competitors.
The University have not yet constructed non-price barriers to entry. However , it will be possible for the University to erect value barrier. This may entails creation of a thing that is considered exclusive industry vast. This may be completed along several dimensions, such as brand image, design, particular features, technology, as well as, supply of quality customer service (Martinez, 2006).
Doing this would permit the company to win the loyalty of the clients with no engaging in costs competition.
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