Monopolistic Competition in the Retail Industry

The exclusive competition in the retail industry defines a market retail industry consisting of thousands of different brands and companies. However, each is defined by the quality of manufacture and the material used. Abercrombie & Fitch, Timberland, Guess are both famous brands. However, if the price exceeds the price that people are willing to pay, consumers will change their preferences and buy from other brands. Therefore, we are dealing with monopolistic competition.

Wal-Mart is an example of an exclusive market. That is, the retail industry is basically an example of an exclusive competitive market. This category is between monopoly and oligopoly. There are many sellers in this market structure and it is easy to enter the market (Twain, 2016). In this market competition, there is a differentiated product, and the advertisement is completed locally. Again, there is no barrier to entry into this industry. In the case of oligopoly, news media different from domestic mass media is the main example of this market structure (Investopedia, 2014). The six major US companies sell more than 80% of the US media. In this regard, Walt Disney, Viacom, CBS, Time Warner, Murdoch Newsgroup, NBC Universal are six companies in this industry. Entry into this market structure is easy, but the new company needs to invest a lot of time, money, and energy to compete with other companies.

Exclusive competition is a market with many competitors, but each company sells slightly different products. Examples of companies involved in monopolistic competition include restaurants, retail stores, salons, home appliances, etc. Each of these corporate groups is competing with each other. For example, it is said that there are two restaurants beyond the street. One is Greek and the other is Mexican. Each of them is competing for customers, but their business is not a mutually exact complete substitute. They offer two completely different dishes, even two different prices and meal experiences.