IMPERFECT COMPETITION Essay Example | Topics and Well Written Essays - 500 words

IMPERFECT COMPETITION - Essay Example Generally, an imperfect competition market can be described as a market setting where the products sold are highly differentiated. In essence, in order to survive in an imperfect market, a firm has to develop unique survival techniques to avoid suffering losses and losing customers loyalty. Apparently, the fast food industry has become quite competitive in the modern times (Schlosser, 2012). In response to the increased competition, firms operating in fast foods industry have come up with distinguished survival strategies to enhance continuity in business. Some of the survival techniques that have been adopted by firms in the fast food industry include product differentiation, brand building and diversity in product promotion. In this regard, it can be observed that the tropical Smoothie Cafà © operates in an imperfect competition market. The price of products offered in an imperfect competition has insignificant influence on demand. Basically, customers in an imperfective competition market are more sensitive on product brand than price. Tropical Smoothie Cafà © has established unique marketing strategies that are rarely known by its competitors. Some of the major competitors of the firm include McDonalds, Starbucks and Burger King. Since the firm operates in an imperfect competition market, the most appropriate means of achieving market power is through establishment of a strong brand name (Manning, 2013). In essence, a strong brand name aids in winning customers loyalty and maintaining them for long. Actually, the firm should emphasis on brand imaging through advertisements and product promotion. In addition, the company should consider offering discounts to its customers to promote sales as well as customer loyalty. The government efforts to regulate business operation can either result in positive or negative outcome to a business concern. The issues of patent