Analysis of Ferrero Company: Monopolistic Competition

Analysis of Ferrero Company: Monopolistic Competition Introduction Ferrero is a historical Italian company that has been operating for nearly a century in 36 countries worldwide. The story of Ferrero started in 1946. Ferrero began factory production in a little town of Alba, Italy and was approved as an official company by the Italian Department of Commerce. Between 1950 to 1970, Ferrero first created a variation of confectioneries such as Tic Tac mints, Nutella hazelnut spread and Kinder chocolates in European countries then to different countries around the world. Ferrero continue to make famous chocolates such as Ferrero Rocher, Rondnoir and Rafaello Coconut Candy. With their hardwork and persistence, today Ferrero is considered as the largest confectionery company around the world. This is their achievement. Market structure Market structure is a number and distribution size of buyers and sellers in the market for particular goods and services. It consists of four types of market structures such as perfect competition, monopoly, monopolistic competition and oligopoly. Firstly, perfect competition is known as pure competition that has a large number of buyers and sellers that are willing to buy and sell the goods at a particular price. But the market price of goods in a perfect competition cannot be influenced by anyone as the firms are price takers. The type of goods are all homogeneous and it is very easy to enter into and exit the perfect competition market. Non-price competition is not important in perfect competition. Furthermore, in a monopoly, there will be only one seller but great number of buyers. A monopolist is a price maker who has the power to control over the price. The type of goods are unique as there is no close substitutes for the goods. The barriers to the entry and exit of firms are extremely difficult. Besides, a monopolistic competition has a large number of firms that supply close substitutes goods but it is not as large as in perfect competition. The control over prices in the market is low and the type of goods are differentiated. The condition for entry into and exit out is relatively easy. Each firm will compete among each other in a monopolistic competition. Lastly, in a oligopoly, there is a small number of firms but large in size. It can sell either identical or differentiated goods. The characteristics of a oligopoly is mutual interdependence as it needs to consider the response of their enemy before making any decision on business policies. The condition for entry and exit is significant obstacles. The chocolate market is one of the well known and important monopolistic competition. One of the prominent company in a monopolistic competition is Ferrero company. There is a great number of companies selling close substitutes goods in a chocolate market like Alfredo, Cadbury, Toblerone and Godiva. These companies and also Ferrero sell slightly different chocolates which are differentiated by their design, brand name, packaging, flavour and promotion to attract more buyers or consumers. Being an independent company, Ferrero can take control over the prices of the chocolates. Besides, it is free to enter into and exit out of the monopolistic competition. Any chocolate firms can enter into the market with close substitutes so as to compete with Ferrero. Ferrero publish attractive advertisements to attract more buyers and consumers. Therefore, it is clearly stated that Ferrero is a monopolistic competition. Competitors of Ferrero In a monopolistic competition, there is stiff competition as to the quality of the goods instead of the price of the goods. Even though Ferrero is one of the largest confectionery companies around the world, it has a few competitors that sell slightly different products. Toblerone is its main competitor. Both brands fight for the quality of the chocolates. The prices of Ferrero’s chocolates are much higher than that of Toblerone because Ferrero’s chocolates are made with better quality ingredients than Toblerone. Furthermore, Ferrero also compete with other brands like Mars and Nestle by having advertisement and organizing seasonal promotions. During festive seasons especially Christmas, Ferrero creates a Christmas Tree Ferrero Rocher boxes, Maxi Kinder Surprise Eggs, and bell boxes for Easter. As for the other competitors, they just have advertisements and promotion like ‘Buy 1 Free 1’ in the supermarkets. Barriers to entry and exit Being a monopolistic competition, there is freedom for the company to enter or exit the chocolate market. It is easy for the Ferrero company to enter and exit as it does not have a very high production cost. There is a great number of companies selling close substitutes products in a chocolate market like Alfredo, Cadbury, Toblerone and Godiva which can replace Ferrero’s products such as Ferrero Rocher Chocolate, Rondnoir and Rafaello Coconut Candy. Pricing decision When a chocolate firm works within a monopolistic competition, it can make any decision on the prices of the chocolates independently. The price of Ferrero’s products can be changed easily by the company as it does not need to care about what will impact the price of other competitors. Even if Ferrero increases the price of its products, it will not downside the number of buyers because of its better quality and uniqueness of the products. Most people said that the higher the price of the products, the better quality of its products. Non-price competition Ferrero company has invested a lot by having advertisements in newspapers and promotions on television, the internet and other social media to attract more customers as well as to maintain the number of loyal old customers. Ferrero can gain more profits by increasing the number of buyers. For example, Ferrero has created a Facebook page and video messages that shows how Ferrero’s products are made of. Besides, Ferrero has used another method to attract more customers by having fanciful packaging which are displayed on the shelves in the supermarkets during festive seasons especially Christmas. The products of Ferrero are Christmas tree Ferrero Rocher boxes, Maxi Kinder Surprise Eggs and Easter bell boxes. Moreover, Ferrero has requested people to share on its Facebook page with their decorations using Ferrero Rocher chocolates during New Year or Christmas Eve. The nicest decoration will get to win a weekend trip to Paris. Conclusion In conclusion, Ferrero has made very delicious and superb chocolate for people to indulge and it belongs to the monopolistic competition. Ferrero company differentiates their products by the design, packaging and flavour. There is freedom to enter into or exit out of the monopolistic competition. Furthermore, Ferrero can make any decision on the prices of its products. It uses many methods of non-price factors to attract more buyers. Today, Ferrero has become a great and ultimate brand of chocolate among others. Ferrero chocolates flavour is unique and has the quality of a branded chcocolate. Eventhough Ferrero sell its products at very high price, consumers still enjoy and love the chocolate. Thus Ferrero has gained its popularity around the world.

Comparing Civil Disobedience by Henry David Thoreau and Martin Luther K

"...A little rebellion now and then is a good thing...It is a medicine necessary for the sound health of government." Thomas JeffersonThoreau, a transcendentalist from the mid 19th century and Martin Luther King Jr., the Civil Rights movement leader of a century later both believed the necessity of medicine for government. Although they showed disagreement of opinion on issues regarding voting, both writers agreed on the necessity to reform the government and the means of accomplishing it. In King's Letter from Birmingham Jail and Thoreau's Civil Disobedience, both agreed on injustice of majority to rule over minority, both resisted the government passively, and both wanted a better government immediately.The majority is not necessarily right, but they have always been the ones in power because they are the strongest and the most influential. Therefore, all the laws are written by the majority, almost all are in favor of the majority, and all are enforced by the majority. According to King, a law drafted by the majority is only just when the minority are willing to follow it. He wrote "An unjust law is a code that a numerical or power majority group compels a minority group to obey but does not make binding on itself" (2:475). In other words, if a law denies the right of the minority or is inflicted upon the minority by force, then it is not a just law. Similar opinions are shared by Thoreau, when he writes "But a government in which the majority r...

“A Day without Feminism” Response

After reading â€Å"A Day without Feminism†, I literally said aloud, â€Å"Wow, I’ve taken so many things for granted†. I’m pretty sure my roommate thinks I’m strange for this sudden outburst, but it really shocked me to see how far the women’s movement has taken our society in such a short amount time. In the last paragraph, the question is asked â€Å"Has feminism changed our lives? † The answer to that question is yes. I grew up attending a child-care center, playing in Little League, and taking the classes that everyone in my class took whether male or female. Nancy Drew and the Hardy Boys were what we liked to call â€Å"grandma† books. I won two softball State Championships on the varsity level. I took pre-calculus and calculus, while planning prom and decorating the gym. Girls and young women DO have sex while they’re unmarried (on a pretty frequent basis too). When I make a trip the gynecologist, she always tells me the side effects of my birth control choices. Rarely a day goes by without hearing of another girl who’s decided to explore the lesbian lifestyle. With this being said it’s clear the world I inhabit barely resembles the world these women were born into. Some of these situations that took place just under forty years ago seem completely outrageous. It’s really hard to believe women actually let things like this happen. Examples that stick out in my mind the most include women being â€Å"strapped down and lying down, made to have the child against gravity for the doctor’s convenience† and a woman going â€Å"under the knife to see if she has breast cancer† and â€Å"waking up to find that the choice (Halsted mastectomy) has been made for her†. The conditions of my childhood compared to things like this happening add an overall shock effect in this reading. Although there is such a large shock effect present, I do not feel as if Baumgardner and Richards wanted the shock to overwhelm the reader in a way that seemed outrageous, but they wanted make the reader realize that it would be unfair to consider these advancements as privileges. Privileges are advantages gained usually as a result of wealth or social status, not something fought hard to earn. It’s unfair that we (women) are constantly made to feel that we should be thankful for the social changes that have taken place over the last century. These rights should have never been an issue. They should’ve just been a part of our daily lives, as they were for males. Baumgardner and Richards ask the questions in the second paragraph â€Å"Is feminism dead? † and â€Å"Do we need new strategies? † I feel like the spirit of feminism isn’t dead at all. One milestone, which sticks out clearly in my mind as part of the feminist movement, took place just a short time ago. This milestone occurred around the time that Hilary Clinton entered herself into the race for presidency. It was one of those mountains a woman needed to climb and Hilary Clinton was the first do so. I’m definitely not trying to put Hilary Clinton on a high pedestal. I realize there are many other women who have done phenomenal things over the past thirty years, but it’s just one major example in the progress of feminism I have noticed in my short eighteen years on earth. To answer the second question, I don’t feel like the strategies need to be changed. With writings such as â€Å"A Day without Feminism† floating around and women running for presidency and vice-presidency, I have no doubt that feminism will remain alive until the ultimate goal has been reached. In conclusion, it is essential for us to see change is part of every history and culture. The feministic changes that have been made in the United States were necessary and there is still a lot left to do. After reading â€Å"A Day without Feminism† it’s clear to see our mothers and grandmothers worked hard to make sure we would we would someday reach an even plateau with men and it’s our job to make sure the same is true for future women raised in this country. We should celebrate our female foremothers who had the vision that we should have more. Women have fought for everything we have and we need to continue to the good fight so that one day women will no longer need to fight this fight.

Pathophysiology And Pathophysiology Of Diabetes Mellitus...

Pathophysiology and Pharmacology of Diabetes Mellitus Type 2 Type 2 Diabetes is a chronic condition that millions of people around the world suffer from. It is related to the hormone insulin, which is secreted by islet of Langerhans cells in the pancreas, it regulates the level of glucose in the bloodstream and supports the body with breaking down the glucose to be used as energy. When people have diabetes, the body doesn’t produce enough insulin or cells don’t respond to the insulin that is produced. Type 2 diabetes is one of the most common forms of diabetes that exists today. What happens to an individual that has diabetes type 2 is that the individual would not be able to produce enough insulin, which is needed for the body in order to be able to use sugar effectively, or perhaps he does produce insulin but his cells would ignore the insulin and will not bind to the right receptors in the cells. Glucose is the fuel for the body that provides energy for functioning, glucose needs to be broken down and be absorbed and taken into the cells of the body, if this process doesn’t happen the individual would suffer from hyperglycemia (high levels of glucose in the bloodstream). If this happens the cells may become starved for sugar, since sugar is not being processed in a proper manner sugar doesn’t get to the cells. This will cause an individual to feel hungry and eat more (polyphagia). On the other hand, the higher levels of blood glucose may harm the internal organs of theShow MoreRelatedThe Pathophysiology Of Diabetes Mellitus Type 1 And 21496 Words   |  6 PagesThe Pathophysiology of Diabetes Mellitus Type 1 and 2 According to the National Diabetes Statistics Report from The Centers for Disease Control and Prevention in 2012, it revealed that 29.1 million of the American population has diabetes with 1.7 million new diagnoses each year. 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Alienation and LonelinessThe 1984 Novel by George Orwell

George Orwells 1984, uses betrayal as a method to further the feeling of alienation and loneliness. â€Å"In walks these three girls in nothing but bathing suits (Updike 430).† The opening of the short story written by John Updike, called ‘AP’, immediately creates a sense of bewilderment. The setting the author uses as the backdrop is very essential to the story and helps with understanding the main character’s decision to eventually quit his job at the end. The protagonist and main character is Sammy, an employee of the AP. Sammy not only walks away from his job, but he also chooses to leave the AP and what the store represents in the story. John Updike’s ‘AP’ uses the setting of the story to create a feeling of being restricted.†¦show more content†¦At one point he even describes a few shoppers as â€Å"houseslaves in pin curlers† (Updike 432). The local regular shoppers seem to walk around the store as if in a coma or trance, because the rigidness provided in the setting. The store is located directly in the middle of the town only five miles away from the beach. Despite the close proximity to the beach, Sammy describes some of the people in the town by saying they probably have not even seen the ocean in many years (Updike 432). This observation is important to the story, because three girls walk into the store in nothing but their bathing suits. This in turn causes a problem. The issue was not that the girls were wearing bathing suits; it had more to do with wearing the bathing suits in a place where people do not normally wear them, inside the AP. You know, it’s one thing to have a girl in a bathing suit down on the beach, where what with the glare nobody can look at each other much anyway, and another thing in the cool of the AP, under the florescent lights, against all those stacked packages, with her feet paddling along naked over our checkerboard green-and-cream rubber-tile floor. (Updike 432) This example is a reflection of the ideologies of that time period. The girls were doing something that was not socially acceptable, especially in the setting of a small town grocery store, like the AP. As soon as the manager, who was described by Sammy as a dreary Sunday school teacher, saw the

Egyptian Society vs. Mesopotamian Society Essay - 1862 Words

When comparing cultures it would be difficult to find two that are more diverse than the Mesopotamian and Egyptian cultures. The Mesopotamian culture was filled with tension and instability while the Egyptian people maintained a stable and somewhat more content way of life. In examining these two cultures one can surmise that these differences are mainly due to the political, economic, social, religious, and geographic differences between Egypt and Mesopotamia. These factors added to the overall mentality of the people. These mentalities affected the stability of each culture, whether for the better or worse. Geographic differences between these two countries were a major factor in determining stability. Mesopotamia rose out of a†¦show more content†¦As a result of the flooding, the people of Egypt were always secure in the knowledge that they would have enough food and water. This added to the mental and economical solidity of the Egyptian people. 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Atom and Energy-level Diagram free essay sample

1. The development of MRI imaging technology is one useful spinoff of basic research into structure of the atom. Research, however, is expensive. Many people argue that high cost of research outweighs its potential benefits. Provide one argument for and one argument against increasing current funding for atomic-structure research. Use specific examples from this lesson in your answer to support each position. (6 marks) Answer: 2. The emission spectrum of an unknown element contains two lines-one in the visible portion of spectrum and the other, ultraviolet. Based on Figure 1. 1 and on what you have learned about Niels Bohr’s model of atom, account for the difference in energy between these lines. (3 marks) Answer: The line which is on the visible portion of spectrum is produced when electron is jumping from higher to lower energy level orbit thus releasing energy and electromagnetic waves featuring longer wavelengths, which mean that these lines are lower in energy compared to line which is emitting on ultraviolet portion of spectrum. We will write a custom essay sample on Atom and Energy-level Diagram or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The line which is on ultraviolet region of spectrum indicates that electron is jumping from highest (higher than previous one) energy level orbit to lowest energy level orbit thus releasing more energy and waves of shorter wavelengths. 3. a. Draw the energy-level diagram and write the electronic configuration for zirconium (element 40). (3 marks) Energy-level diagram for zirconium is drawn below: 4d 5s 4p 3d 4s 3p 3s 2p 2s 1s Electronic configuration for zirconium is given below: s2 2s2 2p6 3s2 3p6 4s2 3d10 4p6 5s2 4d2 b. Use the diagram to explain why the Zr4+ ion exists. (2 marks) When the outer orbitals are filled with applicable number of electrons the element tends to becomes chemically stable under normal conditions. Zirconium atomic structure contains 40 electrons. The nearest noble gas element to zirconium is Krypton, which contains 36 electrons. Therefore, Zirconium will lose 4 electrons, 2 electrons from 5s orbital and 2 electrons from 4d orbital. The energy-level diagram for Zr4+ will look like following: 4p 3d 4s 3p 3s 2p 2s 1s This energy-level diagram is also similar to Krypton energy-level diagram. c. Compare the stability of the Zr atom and the Zr ion. Account for any difference in their stability. (2 marks) Zr atom is neutral i. e. , have 40 electrons and 40 protons. However Zr 4+ ion is charged ion and chemically stable. The outer sub-levels is filled with applicable number of electrons making it difficult to react