‫بسم هللا الرحمن الرحيم‬

Marketing of
Biotechnology
Products

Types of Market
Structures
Dr. Wesam Maher Khamis
lecture
❑Monopolistic Competition
❖ This market is distinguished from the perfect competition
market by the absence of the condition of homogeneity of the
good, that is, the firms produce goods that are not completely
homogeneous but are similar and are considered substitutes
close to each other.
❖ Competition in this market occurs through advertising and
product differentiation.
❖ That is, monopolistic competition prevails in the market if
the following two conditions are met :
- The number of sellers is so large that each of them is
independent in his behavior, without taking into account the
effect of his policy on those of his competitors.
- The sellers' products differ from one another. Meaning,
buyers prefer to do business with a specific seller.
• Example :
An example of monopolistic competition is the shape of cars, the
cereal market, most of them may taste slightly different, but in
the end, they are all breakfast cereals. Another example is
toothpaste.
And the music market. While there are many artists, every artist
is different and cannot be completely replaced by another artist
❑Oligopoly Competition
❖ This market is characterized by the domination of a small
number of institutions (sellers or producers) over a particular
industry, and the behavior of these companies is not
independent of one another.
❖ The number of vendors is small enough to allow joint
cooperation between them, that is, the production unit takes
into account the effect of those policies on the policies of its
competitors when setting its production and price policies,
and the product or service produced in the various production
units is homogeneous or heterogeneous.
• Example: (petrol stations, carbonated water
companies) (producing packaging boxes for
export in America are only two companies,
and the cigarette).
• The gaming console market. Three powerful
companies dominate this market: Microsoft,
Sony, and Nintendo. This leaves them all with
a great deal of market power.
❑ Monoposonistic competition
• The market is characterized by the fact that the
buyer can control the prevailing price, and this is due
either to the small number of buyers in the market
or because some sellers prefer to deal with a specific
class of buyers.
• The market for this commodity is characterized by
the presence of a large number of sellers or
producers and a single buyer of the commodity
• Such as the sugar cane producers and the sugar
production plant.
Thank you