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Qustion1 Identify and explain industry structure in which the company is definitely operating Pos Malaysia Marketplace structure 5. Monopoly organization Introduction (Pos Malaysia) Detrás Malaysia Berhad is Malaysia’s premier physical communications provider. Pos Malaysia also has a widespread network of 701 post offices all over the country, furthermore to the network of mini content offices, mobile post offices, postal real estate agents and stamps agents, rendering it one of the most comprehensive retail networks in Malaysia.

Pos Malaysia’s Strategic Business Units that seek to provide quality, reliable, on time and innovative solutions to the customers, contain PosMel (mail and postal services), PosLaju (courier and express mail services), and PosNiaga (retail business services).

Pos Malaysia also provides for a counter collection and payment agency for a range of economic transactions, such as bill obligations, remittance, insurance and device trusts. Detras Malaysia consists of 3 Primary Core Sections: Pos Mel, Pos Laju and Pos Niaga. Poslaju or EMS service caters to all segments of the organization community as well as the general public.

There are 37 Poslaju Centres nationwide offer all kinds of courier solutions. Besides Postal mail and Exhibit servicer. Poslaju or EMS service suits all sectors of the business community plus the general public. Form of courier companies Inbound Logistics * Traditions Clearance, Importance permit documentation, Transportation, Storage, Distribution channel/break bulk, Evidence of delivery, Trail and track. Outbound Logistics * Traditions clearance, Export documentation, Transportations, Warehousing, Syndication channel/break bulk, Proof of delivery, Track and trace Monopoly market framework (Pos Malaysia)

Government safeguard Pos Malaysia Berhad is actually a Malaysian nota service company that was privatized in 1992 from a government office into a business corporation. Authorities also helps to protect and helps detrás Malaysia in the event that that firm has shortage cost and losses. was attributed to the pos Malaysia is the initial company set up to provide these types of services plus the company has long managed, known by society and high cost inside the provision of post Malaysia. Society devotion The society in Malaysia has regarded about brand of pos Malaysia and the world also has familiar to uses pos Malaysia as companies of email.

The public is often more confident in such a service as Pos Malaysia is a company under the ministry and the govt is indirectly involved in guaranteeing the security from the items stored here. Maximize profit A monopoly market exists when there is numerous buyers although small or perhaps very limited volume of sellers on the market. Monopoly may be the only dealer of a product for which there is absolutely no close alternative. In monopoly market, the firm offers get a increase profit, in the event the manager provides have good skill and knowledge to manages that company.

For example , pos Malaysia have a good manages, and that means this business can get a height income. In monopoly market, pos Malaysia can easily set its own price and the prices chosen affects the amount it provides. Pos Malaysia is the just licensed email services provider in Malaysia and is the best choice in the Malaysia Courier Providers. Pos Malaysia posted a net revenue of RM 61 mil for the nine weeks ended September 2004 , an increase of more than 40 % from the corresponding period in the earlier year.

It truly is projected to earn a net earnings of close to RM100 million this year based on existing postal rates. Benefits of set rates In monopoly market, detrás Malaysia can put the value of the support with a large rate to the profit in the community to obtain greater. This is carried out in the market as pos Malaysia is a only household postal mail are available in Malaysia Advantages in monopoly Stability of costs * Within a monopoly marketplace the prices are most of the times stable. This kind of happens because there is only one organization involved in the marketplace that sets the prices whenever it feels like.

In other types of industry structures rates are not secure and usually be flexible as a result of competition that is available but that isn’t the case in a monopoly industry as there is certainly little or no competition at all. Way to obtain revenue to get the government 2. The government gets revenue in form of taxation from monopoly firms. Large profits * Due to the a shortage of competitors which leads to high number of revenue monopoly firms tend to obtain super income from their operations.

The massive earnings realized may be used in things like launching different products, carrying out research and development between many other points that may be beneficial to the firm. Question a couple of Comment if there are boundaries to access Definition Boundaries to access are designed to obstruct potential traders from coming into a market of course profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and so maintain supernormal (monopoly) income in the long run.

Barriers to access have the a result of making an industry less contestable. Defined an entry hurdle as “A cost of creating (at some or every single rate of output) which in turn must be paid for by a company which tries to enter an industry but is not borne by firms already on the market. Barriers to entry in( pos Malaysia). In detras Malaysia, you will find barriers to entry. Most notable are: Advertising and marketing * Producing consumer dedication by creating branded products can make successful entry in to the market by simply new companies much more high-priced. Cost Advantages Lower Costs, through experience of Getting in the market for missing time, allows the existing postal company Malaysia’s to cut price and win price battles if one other firm enter the market. Absolute cost advantages * Enables an incumbent firm to earn surplus profits with out feat of recent firm entering the market. for example in the market, detrás Malaysia cost of the services is able to offer a cheaper services player medals RM7 per unit, but other companies likes DHL and FedEx only able to offer prices as low as RM 12 postal mail service. and so its pos Malaysia cans set RATES at rm10.

Which is are more chipper, compared to the more consumer use detras Malaysia companies and also have a highest earnings. Government Constraints * Government is the source of barriers to entry which have been created by simply patents and copyrights. But these are not the sole barriers to entry allowed by govt. Government can be, after all, the entity that establishes the rules of the game. Governments often erect barriers to admittance by legally limiting the number of participants in a market. Legal restrictions pertaining to public utilities are usually created to make the most successful use of normal monopoly marketplaces that can create serious inefficiency problems.

Different legal limitations, such as permit or events, are generally intended to pursue different goals, although create obstacles to access however. For example , pos mel only provided by pos Malaysia. Although there are big competition like FedEx and DHL outside, yet pos Malaysia offer cheaper prices. Initial mover advantages * The first organization to enter incurs lower advertising costs as it faces zero rivals. Afterwards firm deal with higher advertising costs mainly because they must contend against the first firm. In case the presence with the incumbent elevates the marketing costs from the second firm to enter, then the first firm has permanent advantages and will maintain substantial prices

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Category: Essay examples,

Topic: Able offer, Barriers entry,

Words: 1268

Published: 12.04.19

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