What Makes A Perfect Market - 1420 Words

When thinking about a perfect market a couple words should come to mind: availability and price. For the market to be going well for the supplier, the customer will need to be satisfied. To turn things around, the customer has to depend on the supplier. This is where availability comes in to play. The supplier’s job is to make sure the customer is able to access their products as easy as possible. Even though some companies to this day do not use e-commerce, in a perfect market e-commerce has to be used. The reason for this is simple and is that customers want to be able to access their wants and needs whenever and wherever they want as easy as possible (Brandt, 2011). From a supplier’s perspective, a perfect market would be considered†¦show more content†¦If the price of a product increases, then the demands for the substitute products will more than likely increase. Customers and suppliers having bargaining power and the market being easily open to new entrants are also two key factors for a perfect market to the customer. If a customer was looking from a price perspective then they would more than likely be focused on frictionless commerce so the prices of the product would be driven down to the marginal cost. They would also be focused on the intermediaries being forced out of the market and the ability of the customers to make deals directly with the suppliers. In this paper there will be information about the benefits and downsides to both perspectives of a perfect market to give the reader a clear insight on how the market has to operate in order to provide benefits to the majority of consumers for a company’s products . Analysis In a perfect market, no company has a competitive advantage or information asymmetries because every firm has equal access to all the factors of production. But, real markets are never perfect. Information asymmetries that lead to many competitive advantages do sometimes exist. Most of a company’s competitive advantages are considered short term but some of them can be extended for long periods of time. People may not realize it but many brands that hold great respect fail every year (Lauden and Traver, 2014). One way for a brand to fail is band