The purpose of this section is to provide the understanding about the Wimpy related to its behaviour in the market environment. It can be said that the behaviour of the organisation like Wimpy can depend on the environment of market within certain economy. The market environment is consisted of certain elements of the market being main factors to determine the structure of market. The factors may include the size of market, price of product, and nature of consumers.
Types of Market Structure
Market structure is known for playing important role for determining price and production. There are certain market structures such as monopolistic competition, oligopoly, monopoly, and perfect competition. There are many organisations in a monopolistic competitive market and every organisation possesses certain amount of market share and they do not possess any influence on the pricing and output. There are small number of organisations in oligopoly market, which control the market share to determine the supply and price for the products. In a perfect competitive market, unlimited number of buyers is
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Different decisions on pricing are dependent on the structures of market. The decisions related to pricing and output is found to be dependent on each other. In the perfect competitive market, price of a single organisation cannot influence the market on the whole because the influence in this case is considered as small in the huge industry. The organisations in a less competitive market can gain certain opportunities to influence the market by changing prices when organisation possesses a significant influence over the industry. This situation emerges when organisations like Wimpy can gain consumers’ attention. In case the organisation can create higher position in the minds of consumers, the market is expected to become less competitive (Kew & Stredwick,