competitive market structure strategies

How Firms Compete With Hidden Messages

Feb 11, 2014 • Behavioral Economics, Businesses, Demand, Supply, and Markets, Labor, Thinking Economically • 441 Views    No Comments

Have you noticed the arrow in FedEx’s logo?

Oligopoly FedEx Competition

Especially because, in class, we have been looking at how oligopolies compete, I appreciated what this BusinessInsider slideshow said about their logos:

A competitive market structure shapes business behavior. For oligopolies, that means sending your message to many millions of consumers. Through a logo and other forms of mass market advertising, oligopolies need to distinguish their product from the goods and services sold by just a few other large, similar firms.

In class, while we identify 4 basic competitive market slots, really, we have a continuum, ranging from most to least competitive. At the far left end, you could start with russet potatoes, then have your barber, after that a local supermarket and then maybe Coca-Cola (I know that we just made a huge leap.), FedEx and then, closest to the other end, your local electricity company. Perhaps, when Amazon arrived, the position of booksellers shifted to the right on the scale.

Competitive Market Structures Continuum

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