The Low Calorie Frozen Microwavable Industry Essay

Javan Gill Assignment 2: Operations Decision ECO 550 Dr. Bernadette West November 14, 2016 Market Structure The low-calorie frozen microwavable industry appears to function under a monopolistic competition market structure. Having, â€Å"a few dominant firms and a large number of competitive fringe firms† is one of the main factors that make a market monopolistic competition (Mcguigan, Moyer, Harris, 2014, p352). In this category of market structure the initial thing that should be done to evaluate the efficiency is to determine the alternatives to the diverse products. In this instance the products should be close, but not perfect replacements for each other. In the low-calorie foods industry there will always be related substitutions because it is centered on what an individual person craves and what they choose to consume. Next, company’s needs to explore what challenges lay ahead for the business to enter the market. If there are obvious obstacles that have no quick alternatives then there may be a different market structure. Finally, the company should inspect the prices and the size of its competitors. Prices fluctuate in this market, but still seems to have an unlimited capacity for low-calorie frozen microwaveable meals. The ultimate desire for each company is to have reasonable prices that will make consumers want to continuously buy its merchandises over others, but there is not one definite company that is setting the price. This is an indicationShow MoreRelatedThe Food And Drug Administration1585 Words   |  7 Pagesconcept to drive current and new customers to its particular microwavable frozen meals products. The microwavable frozen meals e.g. Healthy Choice, Lean Cuisine, Michelina s, etc. are occasionally healthier and/ or at times a better options for working families, individuals and society. Instead of the traditional usage of the oven or stovetop culinary countless people today utilize microwaves due directly toward their busy lifestyles. Low-calorie labels/ brands are regulated through U. S. Food and DrugRead MoreDemand Estimation : Computation Of Elasticities1756 Words   |  8 Pagesdifferentiating the demand function with respect to Y). Given per capita income as 10,000, and quantity demanded, the income elasticity of demand of low-calorie, frozen microwavable food is given by EY=8.10000/75000=1.0667 Interpretation and Implications Price elasticity of demand (PED) = -0.4implies that a 1% increase in the price of low calorie, microwavable food causes the quantity demanded to drop by 0.4%. Since the elasticity is less than 1, the demand is said to be inelastic (Hirshleifer, GlazerRead MoreEco 550687 Words   |  3 Pagesthe regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates. Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide). Write a six to eight (6-8) page paper in which you: 1. Outline a plan that will assess the effectivenessRead MoreThe Importance Of Increase In Prices Of Products1574 Words   |  7 Pagesincrease in prices of products In the anticipation for an increase in the prices of various commodities, it is important for the organization to consider the costs of the materials used in making the product. Since the raw materials for the low calorie and frozen microwaveable food company have increased in price, the cost of product is expected to rise and therefore, the organization needs a plan in order to assist in setting the price to keep the customers happy in the market. One of the plans toRead MoreCase Analysis : Operations Decision1560 Words   |  7 PagesAssignment 2: Operations Decision Market Structure The market structure which the low-calorie frozen, microwavable food company is likely to operating in is the oligopoly structure whereby it could be either in a duopoly or not. A duopoly market structure is defined as a market structure whereby there are few firms in the same industry. This market structure that lies between the other two market structures, that is, monopoly market structure and perfectlyRead MorePricing Strategies For Reducing Price Elasticity2190 Words   |  9 Pagesand stockholders. Pricing Strategies to Reduce Product Price Elasticity In anticipation of rising prices in the low-calorie frozen microwaveable food market companies should consider branding, product differentiation, competitive and temporary discount pricing strategies. The frozen microwavable food company is a monopolistic market. The demand function for low calorie microwavable food depends largely on the price of the product and the relative substitute. In this type of market there are aRead More Analysis of Frozen Food Market in the US Essay2117 Words   |  9 PagesThere are many low calorie microwavable food options available in the market today. With the rise in income people can afford an easier lifestyle therefore there has been a change in the cooking style of people. People now use microwaves in place of traditional cooking methods. With the rise in microwaves, the rise in the number of food items also occurred. With so many varieties and products available one can easily target upon a healthy choice of microwavable food. A low calorie food or a healthyRead MoreWhy Government Regulation Has On Production And Employment2983 Words   |  12 Pagesoutlining a plan that managers can take in the case for low-calorie froze microwaveable foods in anticipation of raising prices when selecting pricing strategies for making their products to a change in price less elastic. Then the paper will examine the major effects that government policies have on production and employment. Predictions will be made based on the potential effects that government policies could have on the low calorie microwavable food company. The paper will then introduce whetherRead MoreA Plan For The Low Calorie, Frozen Microwaveable Food Company1414 Words   |  6 PagesOutline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a rationale for your response. Warren Buffett, the renowned financial investor has said, â€Å"The single most important decision in evaluating a business is pricing power (Frye Campbell, 2011) When a company has the ability and power to raise prices without losingRead MoreMonopolistic Competition Essay1784 Words   |  8 PagesAssignment 2: Operations Decisions Name Professor Course Aug 13, 2015 Low-calorie Frozen Food Industry Low –calorie foods are those with 40 calories or less per serving. The low calorie frozen foods is the choice for a healthy and easy to cook meal. There are several choices of low calorie frozen, microwaveable food products available in the market nowadays (Creasy, 2015). This implies that the market structure is somewhere between a monopolistic and oligopolistic competition, leaning more