Eco 561 Peer Review Feedback

Business Proposal Nattatida Dumrongpalasit ECO/561 September 30, 2013 Maria Hamideh Ramjerdi Business Proposal Product selected Oral-B Pro-Health toothpaste Procter Gamble (PG) had recently announced its entry into the toothpaste market in India with launch of its Oral-B Pro-Health brand. The industry for toothpastes is an example of monopolistic competitive market structure. A monopolistic competitive market is characterized by a large number of buyers and sellers and each seller having a certain degree of monopoly power. Thus this market structure is a mixture of both monopoly and perfect competition. The main characteristics of a monopolistically competitive market are Product differentiation In a monopolistically competitive market, the firms sell products which are almost similar in characteristics, but not identical. This is known as product differentiation. Free entry and exit A monopolistically competitive market is characterized by free entry and exit. Advertisement Advertisement is also another important feature of this market. Every firm under this market structure has to incur advertisement cost to highlight their product to their customers. Thus there is a large practice of non-price competition. There are many toothpaste companies in the country. The Oral-B Pro-Health is a new addition in this industry. Thus we can see that there is