Market Model Patterns Of Change

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Market Model Patterns of Change

Market Model Patterns of Change

Introduction

This paper intends to discuss market model patterns of change. A specific business being publicly traded where there has been a pattern f change in a particular market model will be chosen to discuss. The paper will discuss and provide a brief overview to the business chosen. A particular market model indicating the general pattern of change and its impact over the business operations will be elaborated. Hypothesis of short run and long run market behaviors of the economy will also be discussed. The major factors that impact the degree of competitiveness within the chosen business will be measured. Further, analysis of two major competitors will be conducted and the relevant pricing strategy will be recommended to the chosen business. The purpose of this paper is to make the readers aware about market model patterns of change and its significance through a practical example.

Description of Business

Zara is essentially one of the most important fashion retailers operating throughout the world. Originating from the ship building town of Spain; the Zara has become and achieved success within no span of time. The success rate of Zara could be only imagined by business even operating from a long period of time. The underlying success of Zara has made the owner of the brand the world's richest fashion executive. Also, the success of Zara has made it able to get engaged within the world's most rapid expansion. The business chosen is essentially related to a competitive market and therefore; competitive pricing is managed. I have chosen this business mainly because of the fact that I believe there is no point of discussing businesses having monopoly because they could manage their activities in a manner they want to. The reason behind choosing Zara is that is publicly traded and remains one of the most famous fashion retail outlets throughout the world. The basic market model patters of change that could be witnessed in the fashion industry in the ever increasing competition making the market extremely tough at pricing (www.zara.com).

Short Run and Long Run Behaviors

The short run behavior that can be hypothesized in my chosen area of business is essentially related to the fact that there is less competition in the short run for Zara mainly because of its achieved abilities. Zara being in the business for a longer period of time have achieved economies of scale and the underlying technology Zara has acquired makes it essentially difficult for the competitors to copy. Therefore, the success of Zara can be easily hypothesized in the short run because of the reputation and experience it possess (Langolis & Robertson, 1995).

The long run behavior of the market in which Zara operates cannot remain the same as in the short run hypothesis. With the passage of time, all the competitors can achieve economies of scale as well as they can made investments within the technologies. The adoption of latest technologies and being able to constantly meet, rather exceed ...
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