The restaurant industry is very vibrant in terms of competition and thus being relevant in the market is very key to its existence.Thus, the employment of a market structure is essential as this provides the necessary guidelines to achieve a stable growth. Market structure varies according to the business involved. A restaurant industry may be defined as the organizational distinctiveness of the market which includes forms and levels of competition, product delineation, potency and amount of buyers and sellers and the simplicity of admission into and exit from the market. The characterization of the market structure is majorly determined by the precise restaurant type which includes (1) perfect competitions in which there are numerous buyers and retailers but the prices are not determined by any of them. Further more the admission of goods is limitless. (2)Monopoly; sole seller who influences the price and supply of the goods and services.(3)Oligopoly; involves a variety of companies dealing with related products and have control of the prices.(4)Monopsony;sole buyer has control in the prices and demand of the goods and services.

The existence of multi-units at various geographical localities substantiates the use of submarkets. This enhances the diversification of services and goods and thus boosting market growth in terms of customers. The submarket system helps to analyze structural transformations in order to enhance the industrial efficiency in services and goods production. The utilization of these submarkets still faces competition as they deal with same products as the main firm. To achieve proficiency, the submarkets have to meet the consumers’ demands, utilize strategic prospects and effect cost benefits. The competitive pressures include the determination of the number of sub-units the firm intends to open, the name, location, the kind of service offered, prices that will ensure utmost benefits, the operating time and the cost of advertising to put up a reputation that ensures growth of the industry. The maximization of profits is mainly achieved through enlarged market size by the establishment of multi-units.Thus; a restaurant maximizes its profits by diversifying its services and products in the market. The strategic position of the submarket relative to the customer base also boosts the revenues. The consistency in efficiency gained from these multi-units operations is associated with the geographical distribution of these multi-units

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