THE MARKET ENVIRONMENT

Organizational Behavior in the Market Environment



Organizational Behavior in the Market Environment

Introduction

Market Structures Determining the Pricing and Output Decisions of Business

An economy is classified in the broader meaning of four basic market structures namely perfect competition, monopolistic competition, oligopoly and monopoly. Taking the example of Microsoft, Microsoft market structure is of monopoly nature, because of its unique products its lies in the category of monopoly market structure and because of this it had faced many time allegations from antitrust laws. Factors, which can affect, labor supply and demand for this firm can be:

Technology

As technology provides greater opportunities to enhance worker productivity, it also provides applications that replace worker effort with machines, computers, and robots. This tension between labor and capital as substitutes in production and as complements in production will not be resolved easily, and will need to be considered on a case by case basis across the economy as modern technology changes the nature of the work that people do.

Market structures are developed only through a proper analysis of the economic forces that affect the organization. As the factors and characteristics of each market differ, firms analyze their strategic actions to reap maximum benefit from the potential markets on, both, the long run and short run. Wal-Mart is not a monopolistic market as there are many other firms competing with it for market share as well as the profits. Wal-Mart focuses its customers from the lower income group who look for better quality products at lower prices. They strategize to reap profits from charging lower prices but with increased sales. It is the significant threat to the grocery retailing industry as they strategize their sales through discount retailing.

Market Forces Shaping Organizational Responses

All successful Internet businesses attract competition. Competition is one of the market forces. Since Amazon sells the same or similar streets as a shop and other online companies, it may become more difficult to differentiate the brand from its competitors. Amazon in the initial phase of the maturity of its life cycle, it is therefore, appropriate for the Amazon to protect their market share by expanding its services (Robin, 1988, pp. 1-20). Is the strategic direction or strategic objectives, both present and future of the company's goal to show the direction in which their products are in the future (Day, 1994, pp. 37-52) .

Technology

Technology is the number one asset Amazon. Thus, the growth of electronic commerce and access to high speed ...