Economics
Task One
Malaysia as we seen has undergone a lot of changes. During 1980 's there isn 't any much hypermarket and Jaya Jusco or now know as Jusco was one of the very first Hypermarket to be opened in Malaysia. As time flies by, Malaysia is now occupied by quite a number of other Hypermarkets like Tesco, Giant, Carrefour and Mydin. All this bring choices to the consumers in Malaysia as all these Hypermarkets are competing with each other. Retailing is one of the factors that bring growth to Malaysia Growth Domestic Product (GDP) and with more Hypermarkets coming up, so do the GDP of Malaysia.
The market structure of hypermarkets in Malaysia belongs to oligopoly. The market structure characteristics of oligopoly are quite alike to monopoly, but the difference is an oligopoly is a market dominated by small numbers of suppliers, which is called as oligopolist. The barrier to enter or exit in this market is high. The insufficient of cost to access of advanced technology, the copyright issues and restrictions by the government are the common difficulty to enter.
Market of oligopoly produces homogeneous and differentiated products. Homogeneous products are products that are the same including terms of branding. For instance, homogeneous products that can be found in any hypermarkets are like Nestle, Maggie, F&N and so much more. Differentiated products are products produced by the hypermarket itself, which uses its own branding.
Malaysia’s hypermarkets sell at a huge range of products for customers to choose on. Stationeries to home appliances, to clothing, skin cares and health products are widely available in these hypermarket. Customers nowadays prefer going to hypermarkets to get their daily fresh raw food then going to the morning wet market. Not only that, different hypermarket has its own branding products. For example Giant has first choice, Gino, Uncle Jack while Tesco has Tesco choice.
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Awareness of firms in price
Malaysia as we seen has undergone a lot of changes. During 1980 's there isn 't any much hypermarket and Jaya Jusco or now know as Jusco was one of the very first Hypermarket to be opened in Malaysia. As time flies by, Malaysia is now occupied by quite a number of other Hypermarkets like Tesco, Giant, Carrefour and Mydin. All this bring choices to the consumers in Malaysia as all these Hypermarkets are competing with each other. Retailing is one of the factors that bring growth to Malaysia Growth Domestic Product (GDP) and with more Hypermarkets coming up, so do the GDP of Malaysia.
The market structure of hypermarkets in Malaysia belongs to oligopoly. The market structure characteristics of oligopoly are quite alike to monopoly, but the difference is an oligopoly is a market dominated by small numbers of suppliers, which is called as oligopolist. The barrier to enter or exit in this market is high. The insufficient of cost to access of advanced technology, the copyright issues and restrictions by the government are the common difficulty to enter.
Market of oligopoly produces homogeneous and differentiated products. Homogeneous products are products that are the same including terms of branding. For instance, homogeneous products that can be found in any hypermarkets are like Nestle, Maggie, F&N and so much more. Differentiated products are products produced by the hypermarket itself, which uses its own branding.
Malaysia’s hypermarkets sell at a huge range of products for customers to choose on. Stationeries to home appliances, to clothing, skin cares and health products are widely available in these hypermarket. Customers nowadays prefer going to hypermarkets to get their daily fresh raw food then going to the morning wet market. Not only that, different hypermarket has its own branding products. For example Giant has first choice, Gino, Uncle Jack while Tesco has Tesco choice.
[pic] [pic] [pic]
Awareness of firms in price
References: • McConnell, C. R., Brue, S. L. 2007. Economics: Principles, Problems, and Policies. 17th edition. McGraw Hill. • Mankiw, N. G. 2007. Principles of Economics. 4th edition. Thomson South-Western. • Tesco, (WWW) Available from: http://www.tesco.com.my [Accessed: 10th April 2011] • Giant, (WWW) Available from: http://www.giant.com.my/ [Accessed: 10th April 2011] Suketu M., 29th March 2010, “Oligopoly Characteristics”, (WWW) Available from: http://www.buzzle.com/articles/oligopoly-characteristics.html [ Accessed: 10th April 2011] Geoff R., Eton C., September 2006, “Oligopoly – Overview”, (WWW) Available from : http://tutor2u.net/economics/revision-notes/a2-micro-oligopoly-overview.html [ Accessed: 10th April 2011] • Vicky M. 2010, Kinky Demand Curve, (WWW) Available from: http://vickymostovoy.blogspot.com/2010/11/kinky-demand-curve.html [Accessed: 10th April 2011] Yuval L., 2005, “Michael Porter 's Five Strategic Market Forces”, (WWW) Available from: http://www.photopla.net/wwp0503/supplier.php [Accessed: 10th April 2011] Central Intelligence Agency, 2011, (WWW) Available from: https://www.cia.gov/library/publications/the-world-factbook/fields/2003.html [Accessed: 10th April 2011]