Pure Competition - Fiji Free Essay, Term Paper and Book Report
Pure Competition: Fiji Water
Pure competition is described as involving “a very large number of firms producing a standardized product. New firms can enter or exit the industry very easily” (Brue & McConnell, 2004). This particular type of firm is considered a “price taker,” only merely adjusting to market price, not changing it. Describing the sellers in large numbers and its standard (identical/homogeneous) products makes it nearly impossible for one seller to charge higher prices than its competition.
An interesting example of a company that is doing very well in this competitive environment is Roll International (RI), Los Angeles, the company that sells Fiji bottled water. Fiji, one of two brands under RI (including Pom Wonderful pomegranate), acquired this particular water brand in 2004. Its goal overall was to change its positioning from high-end retail to even distribution in markets throughout the U.S. RI/Fiji Water fills its place in pure competition comfortably, using various pricing and non-pricing strategies to gain continued success in the bottled water industry.
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Word Count: 495
Page Count: 1.9 (250 words a page / double spaced)
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