Father Saturnino Urios University
ACCOUNTANCY PROGRAM
Butuan City
THE 5 MARKET STRUCTURE
Submitted to
Hannah Dara V. Garay-Nugroho
A Faculty of the Business Administration Program
Of Father Saturnino Urios University
In Partial Fulfillment
Of the Requirements for the Subject Busn 403B
(Business Policy and Strategy)
By:
REVE JOY E. ISAGA
BSA IV-A41
PERFECT COMPETITION
HotForex is an award winning forex and commodities broker, providing trading services and facilities
to both retail and institutional clients. Through its policy of providing the best possible trading
conditions to its clients and allowing both scalpers and traders using expert advisors unrestricted
access to its liquidity, HotForex has positioned itself as the forex broker of choice for traders
worldwide. HotForex offers various accounts types, trading software and tools to facilitate individuals
and institutional customers to trade Forex and CFD's online. All Retail, Affiliates and White
Label clients have the opportunity to access various spreads and liquidity via state of the art
automated trading platforms. HotForex provides an unparalleled variety of account options that
clients can select to enjoy a tailored trading experience that perfectly suits their needs. Coupled with
superior trading conditions and lightning fast execution, HotForex provides all the tools and services
needed for clients of any level to realise their trading ambitions.
Global Prime is an Australian based online Forex brokerage firm with head office located in Sydney
as well as development and support offices worldwide. We provide foreign exchange trading services
directly and through established relationships with some of the most trusted names in the industry.
Our vision is to create a brokerage that our clients feel comfortable and at ease trading with so they
can focus on their trading.
Netflix is the world's largest online DVD movie rental service offering more than 26,000,000
members access to more than 100,000 titles. Our appeal and success are built on providing the most
expansive selection of DVDs, an easy way to choose movies and fast, free delivery.
Netflix, Inc., incorporated on August 29, 1997, is a provider an Internet television network. The
Company operates through three segments: Domestic streaming, International streaming and
Domestic DVD. The Domestic streaming segment includes services that streams content to its
members in the United States. The International streaming segment includes services that streams
content to its members outside the United States. The Domestic DVD segment includes services, such
as digital optical disc (DVD)-by-mail.
The Company's members can watch original series, documentaries, feature films, as well as television
shows and movies directly on their Internet-connected screen, televisions, computers and mobile
devices. It offers its streaming services both domestically and internationally. In the United States, its
members can receive DVDs delivered to their homes. The Company had members streaming in over
190 countries, as of December 31, 2016. Its subsidiaries include Netflix Entretenimento Brasil LTDA,
Netflix K.K., Netflix International B.V., Netflix Streaming Services, Inc., NetflixCS, Inc. and Netflix
Studios, LLC.
Spotify is a Swedish company that streams music, video, and podcasts through licensing agreements
with record labels and media companies; it also offers its own exclusive content. Spotify, which is
available in the Americas, Western Europe, parts of Asia, and Australia and its surrounding islands,
was founded in 2006 by now-CEO Daniel Ek and Martin Lorentzon. The company is known for helping
to legitimize the "freemium" model: the tiered pricing strategy whereby basic services like music
streaming are provided free of charge (with advertising, in Spotify's case), but premium services like
ad-free listening and direct downloads cost users extra. Spotify is a commercial music streaming
service that provides restricted digital content from a range of record labels and artists. Users can
browse through the interface by artist, album, genre, playlist, record label, and direct searches. It
also enables individuals to create, share, and edit playlists with other users. If users want
recommendations, they can integrate their system with [Link], an application that provides music
recommendations based on listening history. The radio feature installed in Spotify creates random
playlists for its users that are related to preferred artists. Social media integration is a popular feature
that enables users to connect their Spotify accounts to their Facebook and Twitter profiles. This
enables them to access their friends’ favorite music and playlists and share their choices with others
as well. Spotify users can purchase their preferred content through partner retailers. Spotify is
available for mobile device platforms such as Android, Blackberry, Boxee, iOS, Linux, MeeGo,
Squeezebox, Windows mobile, and more.
[Link], Inc., doing business as Amazon is an American electronic commerce and cloud
computing company based in Seattle, Washington that was founded by visionary Jeff Bezos on July 5,
1994. The tech giant is the largest Internet retailer in the world as measured by revenue and market
capitalization, and second largest after Alibaba Group in terms of total sales. The [Link]
website started as an online bookstore and later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, softwar
e, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also
produces consumer electronics—Kindle e-readers, Fire tablets, Fire TV, and Echo—and is the world's
largest provider of cloud infrastructure services (IaaS and PaaS). Amazon also sells certain low-end
products like USB cables under its in-house brand AmazonBasics. Amazon has separate retail
websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy,
Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico. In 2016, Dutch, Polish, and
Turkish language versions of the German Amazon website were also launched. Amazon also offers
international shipping to certain other countries for some of its products.
MONOPOLY
Established as Manila Electric Railroad and Light Company to provide electric light and power
and an electric street railway system to Manila and its suburbs. The facilities that Meralco built to
provide these two services represented for many years the largest single investment of American
private capital and know-how in the whole of East Asia. For a little more than four decades, Meralco
provided Manileños their first modern mass public transportation system with electric streetcars.
These were supplemented by buses in the 20s. Meralco is the largest electric distribution company in
the Philippines, covering 36 cities and 75 municipalities, including Metro Manila. They have been in
service for 114 years, with a franchise area of over 9,685 km2. They are the core of the country's
industrial, commercial, and population centers.
Maynilad Water Services, Inc. (Maynilad) was formed in 1997, after the consortium of Benpres
Holdings Corporation and Suez Lyonnaise de Eaux won the exclusive right to provide water and
wastewater services in the West Zone of Metropolitan [Link] then, the Metropolitan
Waterworks and Sewerage System (MWSS) was in charge of providing these services. Since its re-
privatization, Maynilad has spent over P47 billion to improve and expand its water services. As a
result, over 9 million people in Valenzuela City down to Cavite City are now enjoying safe, reliable
water [Link] the coming years, Maynilad will focus on accelerating its wastewater investments,
while ensuring the water supply of its current and future customers.
Campbell Soup Company is a global food company headquartered in Camden, N.J., with annual
sales of approximately $8 billion. The Company makes a range of high-quality soups and simple
meals, beverages, snacks and packaged fresh foods. Campbell is driven and inspired by our purpose:
Real food that matters for life’s moments. For generations, people have trusted Campbell to provide
authentic, flavorful and readily available foods and beverages that connect them to each other, to
warm memories, and to what’s important today.
Microsoft Corporation, leading developer of personal-computer software systems and
applications. The company also publishes books and multimedia titles, produces its own line of hybrid
tablet computers, offers e-mail services, and sells electronic game systems,
computer peripherals (input/output devices), and portable media players. It has sales offices
throughout the world. It is one of the most controversial cases of monopoly and dominance on the
planet. Its sector of production of goods and services is the market of hardware and software, where
it generated a revolution since its appearance. Founded in 1975 by Bill Gates Y Paul Allen . Microsoft
is responsible for the development of the Windows operating system and its add-ons. He has different
legal disputes over monopoly in the European Union and the United States.
Intel Corporation (also known as Intel, stylized as intel) is an American multinational
corporation and technology company head quartered in Santa Clara, California, in the Silicon Valley. It
is the world's second largest and second highest valued semiconductor chip makers based on revenue
after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the
processors found in most personal computers (PCs). Intel supplies processors for computer system
manufacturers such as Apple, Lenovo, HP, and Dell. Intel also
manufactures motherboard chipsets, network interface controllers and integrated circuits, flash
memory, graphics chips, embedded processors and other devices related to communications and
computing.
OLIGOPOLY
Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier
roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000
employees across 19,767 company operated & licensed stores in 62 countries. Their product mix
includes roasted and handcrafted highquality/premium priced coffees, tea, a variety of fresh food
items and other beverages. They also sell a variety of coffee and tea products and license their
trademarks through other channels such as licensed stores, grocery and national foodservice
accounts. 1 Starbucks also markets its products mix with other brand names within its portfolio of
companies, which include Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers,
Evolution Fresh, La Boulange and Verismoits mission is to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.
Tesco PLC, trading as Tesco, is a British multinational grocery and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third largest
retailer in the world measured by profits and ninth-largest retailer in the world measured by
revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the
UK (where it has a market share of around 28.4%), Ireland, Hungary and Thailand. Tesco first started
selling petrol in 1974. Tesco sells 95, 97 and 99 RON (a fuel developed by Greenergy of which Tesco
is a shareholder) petrol from forecourts at most Superstore and Extra locations. Tesco have recently
diversified into biofuels, offering petrol-bioethanol and diesel-biodiesel blends instead of pure petrol
and diesel at their petrol stations, and now offering Greenergy 100% biodiesel at many stores in the
southeast of the United Kingdom. In 1998, Tesco and Esso (part of Exxonmobil) formed a business
alliance that included several petrol filling stations on lease from Esso, with Tesco operating the
attached stores under their Express format. In turn, Esso operates the forecourts and sells their fuel
via the Tesco store. As of 2013, there were 200 joint Tesco Express/Esso sites in the UK.
Philstar Daily Inc. operates as a publisher of newspaper and magazines in the Philippines such as
The Philippine STAR, Philippine STAR Ngayon, a tabloid style newspaper published in the national
language; Freeman, Cebu’s English language newspaper, Banat, a tabloid published in Cebuano; and
People Asia Magazine, profiles personalities in the Philippines and other regions. It offers news in
nation, world, business, sports, entertainment, lifestyle, and other sections. The company was
founded in 1986 and is based in Mandaluyong City, the Philippines. As of March 4, 2014, PhilSTAR
Daily Inc. operates as a subsidiary of Mediaquest Holdings Inc. The Philippine STAR is the flagship
title of the country’s largest and most successful print media enterprise, the Star Group of
Publications. The STAR one fines a broad spectrum of ideas and opinions from must-read columnists
whose views influence decision-makers in Philippine society. The Philippine STAR also fiercely guards
its reputation as a valuable source of news and information on Sports, Business, Lifestyle and
Entertainment with best-in-class sections that carry on the paper’s highest journalistic traditions.
These sections help make The STAR a truly enjoyable daily reading habit for Filipinos all over the
world, as we say, “from cover to cover”.
For the well-informed, every issue of The Philippine STAR is an investment worth making. Over
time, The STAR has built an enviable readership base in the country.
stop… whether you’re a Volume Shopper or a Regular Privileged Member of S&R. S&R offers imported
grocery items and extensive selection of premium wines and liquors from all over the world.
Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer
packaged goods manufacturing company founded in 1886. Johnson & Johnson's brands include
numerous household names of medications and first aid supplies. Among its well-known consumer
products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's
baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact
lenses.
Tim Hortons Inc. (known internationally as Tim Hortons Cafe and Bake Shop, colloquially
known as Timmies or Tim's) is a Canadian-based multinational fast food restaurant known for
its coffee and donuts. It is also Canada's largest quick service restaurantchain; as of December 31,
2016, it had a total of 4,613 restaurants in nine countries. Tim Hortons is one of the largest publicly-
traded restaurant chains in North America based on market capitalization, and the largest in Canada.
Operating in the quick service segment of the restaurant industry, Tim Hortons appeals to a broad
range of consumer tastes, with a menu that includes premium coffee, espresso-based hot and cold
specialty drinks including lattes, cappuccinos and espresso shots, specialty teas, fruit smoothies,
home-style soups, fresh Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh
baked goods, including our trademark donuts.
MONOPOLISTIC COMPETITION
Headmasters is an award winning group known as industry recognised pioneers and often the
hairdressing benchmark for quality, luxury and affordable hair. It is their ethos and underlying
mission that has allowed the Headmasters Brand to develop at such a phenomenal rate. They opened
their doors 31years ago in Wimbledon and now have 65salons and employ over 1,400 hair artists
keeping their clients loyal by delivering standards of excellence. Headmasters are salons of luxury and
are found in the most affluent parts of the country, most recently, they have been voted Your Hair
Magazines Best Hair Salon Chain, an award that recognises not only their hairdressing talent but also
the levels they go to in order to please their clients. Visiting a Headmasters salon will be a luxurious
pleasure that will result in unique and personalised hairstyle created by a talented artist.
Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and
wholesaler of doughnuts, coffee and other complementary beverages, and treats and packaged
sweets. The company operates through four segments: Company Stores, Domestic Franchise,
International Franchise, and KK Supply Chain. It owns and franchises Krispy Kreme stores. As of
January 31, 2016, the company operated 297 Krispy Kreme stores in 41 states and in the District of
Columbia; and operated 824 shops in 25 other countries worldwide. It also produces doughnut mixes
and doughnut-making equipment. The company was founded in 1937 and is headquartered in
Winston-Salem, North Carolina. As of July 27, 2016, Krispy Kreme Doughnuts, Inc. operates as a
subsidiary of Cotton Parent, Inc. Krispy Kreme is an international retailer of premium-quality sweet
treats, including its signature hot Original Glazed® doughnut. Headquartered in Winston-Salem, NC,
the company has offered the highest-quality doughnuts and great-tasting coffee since it was founded
in 1937. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in more than 1145
locations around the world. Currently Krispy Kreme can be found in 28 countries. Krispy Kreme is
seeking potential franchisee candidates who possess the following: 1) Passion about the Krispy Kreme
brand and the food industry, 2) Proven track record of running a successful multi-unit restaurant
business, 3) A high level of commitment to providing a great customer experience, and 4) The
financial resources to fund a multi-unit store development plan inlcude a minimum of a $300,000
liquidity for each store in the development territory.
FOREVER 21 is the 5th largest specialty retailer in the United States. A customer from Toronto
named her daughter Tiev Forever Golding because she almost had her baby in a Forever 21 store.
Once the child’s passport expires, they plan to legally change her first name to “FOREVER”. FASHION
21 rung up $700,000 in sales in its first year. The prior three businesses that occupied that building
failed within the first year.
Forever 21 is an American retail chain that is #122 in Forbes biggest private companies list of
USA. With headquarters in Los Angeles, California, the company has 480 branches all over the
world and has notched up sales of $3.7 billion in 2013. One of America’s most preferred
retailers, Forever 21 was established as Fashion 21 in 1984 by a Korean immigrant in a small
900 sq feet space.
NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel,
accessories, equipment, and services. It operates through the following business segments: North
America, Western Europe, Central & Eastern Europe, Greater China, Japan, Emerging Markets, Global
Brand Divisions, Converse, and Corporate. The Global Brand Divisions segment represents the Nike
brand licensing business. The Converse segment design, market, license, and sell casual sneakers,
apparel and accessories. The Corporate segment is consist of foreign current hedge gains and losses
related to revenues generated by entities within the Nike brand and Converse but managed through
the central foreign exchange risk management program of the company. The company was founded
by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR.
Under Armour started with a simple plan to make a superior T-shirt. A shirt that provided
compression and wicked perspiration off your skin rather than absorb it. A shirt that worked with your
body to regulate temperature and enhance [Link] in 1996 by former University of
Maryland football player Kevin Plank, Under Armour is the originator of performance apparel - gear
engineered to keep athletes cool, dry and light throughout the course of a game, practice or workout.
The technology behind Under Armour's diverse product assortment for men, women and youth is
complex, but the program for reaping the benefits is simple: wear HeatGear® when it's hot,
ColdGear® when it's cold, and AllSeasonGear® between the [Link] Armour’s mission is to
make all athletes better through passion, design and the relentless pursuit of innovation.
DUOPOLY
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre
Tower in downtown Dallas, Texas. AT&T is the world's largest telecommunications company. AT&T is
also the second largest provider of mobile telephone services and the largest provider of fixed
telephone services in the United States. The company provides broadband subscription television
services through Uverse Tv and DirecTV satellite television. Combined with AT&T's legacy U-
verse service, this also makes AT&T the largest paid television operator. AT&T is the second-largest
company in Texas, behind ExxonMobil. AT&T is the 11th largest company in the world. AT&T is
the largest telecommunications company in the world by revenue. As of 2017, it is also the 21st-
largest mobile telecom operator in the world, with 138.8 million mobile customers. AT&T was ranked
at #4 on the 2017 rankings of the world's most valuable brands published by Brand Finance. Since
2012, AT&T has invested more in the United States than any other public company. AT&T is in
duopoly with Verizon in the Global Telecom Industry.
Mastercard is the first payment card issued in the People’s Republic of China, the first to introduce a
laser hologram on cards and the first Mastercard business card is launched. Mastercard is a leading
global payments & technology company that connects consumers, businesses, merchants, issuers &
governments around the world. Mastercard is in duopoly with Visa in electronic payment processing
market.
Visa Inc. (also known as Visa) is an American multinational financial services corporation
headquartered in Foster City, California, United States. It facilitates electronic funds
transfers throughout the world, most commonly through Visa-branded credit cards and debit
cards. Visa does not issue cards, extend credit or set rates and fees for consumers; rather, Visa
provides financial institutions with Visa-branded payment products that they then use to offer credit,
debit, prepaid and cash-access programs to their customers. Visa is in duopoly with Mastercard in
electronic payment processing market.
Apple Inc. is an American multinational technology company headquartered in Cupertino,
California that designs, develops, and sells consumer electronics, computer software, and online
services. The company's hardware products include the iPhone smartphone, the iPad tablet computer,
the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple
TV digital media player, and the HomePod smart speaker. Apple's consumer software includes
the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and
the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store,
the iOS App Store and Mac App Store, Apple Music, and iCloud. Apple Inc. is in duopoly with Microsoft
in personal computer industry.
Marvel Entertainment, LLC, a wholly-owned subsidiary of The Walt Disney Company, is one of the
world's most prominent character-based entertainment companies, built on a proven library of more
than 8,000 characters featured in a variety of media over seventy-five years. Marvel utilizes its
character franchises in entertainment, licensing and publishing. Marvel is in duopoly with DC Comics
in the superhero genre.
COMPANY SELECTED:
The company that I think will have a success in putting up their
business here in Butuan City is Starbucks Company. It primarily
operates and competes in the retail coffee and snacks store
industry. It is the leading retail coffee and snacks store, that
according to a study it has 36.7% market share in US coffee and snack
retail industry. Using Porter’s 5 forces the threat of new entrants for Starbucks in Butuan is
Moderate. Though Starbucks has established itself well in the market still it will have
moderate threats of new entrants as it localized. Small coffee shops can however still
compete with Starbucks because there is no switching of costs for the consumers for
switching to substitute’s r the consumers. As to the Threat of Substitutes, there is a High
possibility of substitute since there are no switching costs for the consumers for switching to
substitutes and small coffee shops can compete with them. As to Bargaining Power of
Buyers there is Moderate to Low Possibility, having the characteristic of oligopoly market
structure, there are many different buyers in this industry and no single buyer can demand
for its price. Also its products are differentiated with a diverse consumer base which grinds
down the buyer’s power. As to Bargaining Power of Suppliers there is a Low to Moderate
Pressure. Starbucks forms a highly important part of the suppliers business, due its size and
scope, which make the power of the suppliers lower. The suppliers in the industry also pose
a low threat of competing against Starbucks by forward vertical integration, which lowers
their power. As to Intensity of Competitive Rivalry there exists a High to Moderate pressure
in this area. Starbucks maintain some competitive advantage as it differentiates its products
with premium products and services, which cause a moderate level of intensity in
competition. Though there is a high to moderate pressure in competitive rivalry, still
Starbucks has positioned itself well in the market and their brand is known for Products of
the Highest Quality.
