Industrial Economic Research Paper

Qustion1 Identify and explain the securities persistence social organisation in which the partnership is operating Pos Malaysia grocery structure * Monopoly inviolable Introduction (Pos Malaysia) Pos Malaysia Berhad is Malaysias premier physical communications provider. Pos Malaysia likewise has a widespread network of 701 postal process offices each(prenominal) over the country, in attachment to its network of mini post offices, sprightly post offices, postal agents and stamp agents, mould it bingle of the nigh extensive sell networks in Malaysia.Pos Malaysias Strategic byplay Units that aim to provide quality, reliable, timely and modern solutions to its nodes, ar made up of PosMel ( send off and postal emolument), PosLaju (courier and express mail services), and PosNiaga (retail business services). Pos Malaysia too acts as a counter show and payment agency for a rove of financial transactions, such as circular payments, remittance, insurance and unit tru sts. Pos Malaysia consists of 3 primary(prenominal) Core Business Units Pos Mel ,Pos Laju and Pos Niaga. Poslaju or EMS service caters to all segments of the business community and the world-wide public.There be 37 Poslaju Centres nationwide cater all types of courier services. Besides repel d experience and Express servicer. Poslaju or EMS service caters to all segments of the business community and the general public. graphic symbol of courier services Inbound Logistics * customs duty Clearance, Import permit documentation, Transportation, Wargonhousing, Distri exception way/break bulk, Proof of delivery, Track and mark. come to the foregoing Logistics * Customs clearance ,Export documentation ,Transportations ,Warehousing ,Distri barelyion origin/break bulk ,Proof of delivery ,Track and trace Monopoly securities industry structure (Pos Malaysia)Government cheerion Pos Malaysia Berhad is a Malaysian postal service partnership that was privatized in 1992 from a re gime department into a business corporation. Government likewise protects and helps pos Malaysia if that star sign has shortage cost and losses. was attri exactlyed to the pos Malaysia is the scratch company established to provide these services and the company has long operated, known by society and high up cost in the provision of post Malaysia. Society faithfulness The society in Malaysia has known slightly brand of pos Malaysia and the society also has beaten(prenominal) to uses pos Malaysia as services of mail.The public depart be more confident in such a service as Pos Malaysia is an agency under the ministry and the government is indirectly involved in ensuring the security of the items unploughed here. Maximize attain A monopoly grocery store exists when in that respect is huge number of buyers but small or very express number of sellers in the market. Monopoly is the alto startleher supplier of a product for which thither is no close substitute. In monopoly market, the sure has get a maximize dough, if the manager has halt good skill and knowledge to manages that company.For example, pos Malaysia keep a good manages, and that means this company can get a tallness profit. In monopoly market, pos Malaysia can set its own cost and the prices chosen affects the quantity it sells. Pos Malaysia is the only licensed mail services provider in Malaysia and is the leader in the Malaysia messenger Services. Pos Malaysia posted a net profit of RM 61 cardinal for the nine months terminate September 2004 an increase of more than 40 per cent from the corresponding period in the previous year.It is projected to wee a net profit of close to RM100 million this year based on active postal rates. Power of set prices In monopoly market, pos Malaysia can put the price of the service with a high rate to the profit of the community to obtain greater. This can be carried out in the market as pos Malaysia is the only domestic postal mail flinged in Malaysia Advantages in monopoly Stability of prices * In a monopoly market the prices are most of the times stable. This happens because there is only one firm involved in the market that sets the prices if and when it feels like.In impudently(prenominal) types of market structures prices are non stable and tend to be stretchy as a result of the contestation that exists but this isnt the case in a monopoly market as there is little or no rival at all. Source of revenue for the government * The government gets revenue in earn of taxation from monopoly firms. Massive lolly * overdue to the absence of competitors which leads to high number of gross revenue monopoly firms tend to receive super bread from their operations.The massive profits realized whitethorn be used in such things as launching other products, carrying out research and development among many other things that may be beneficial to the firm. gesture 2 Comment if there are bars to launching Definition Barriers to origination are designed to block potential entrants from entry a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits in the long run.Barriers to entry experience the effect of making a market less contestable. Defined an entry barrier as A cost of producing (at virtually or every rate of output) which essential be borne by a firm which seeks to enter an industry but is non borne by firms already in the industry. Barriers to entry in( pos Malaysia). In pos Malaysia, there are barriers to entry. Among them are Advertising and market * Developing consumer dedication by establishing branded products can make successful entry into the market by new firms much more expensive. comprise Advantages Lower Costs through experience of Being in the market for wanting(p) time, allows the existing postal company Malaysias to cut price and win price wars if another firm enter the market. sheer(a) cost advantages * Allows an incumbent firm to earn excess profits without feat of new firm entering the market. for example in the market, pos Malaysia price of the service is able to tolerate a cheaper service player medals RM7 per unit, but other companies likes DHL and FedEx only able to offer prices as low as RM 12 mail service. so its pos Malaysia cans set PRICES at rm10.Which is are more chipper, than the more customer use pos Malaysia services and also get a highest profit. Government Restrictions * Government is the opening of barriers to entry that are seduced by patents and copyrights. nevertheless these are not the only barriers to entry enabled by government. Government is, after all, the entity that establishes the rules of the game. Governments much erect barriers to entry by legitimately limiting the number of participants in a market. Legal restrictions for public utilities are usually designed to make the most stiff use of natural monopoly markets that can spend a penny serious inefficiency problems.Other legal restrictions, such as licenses or charters, are generally think to pursue other goals, but create barriers to entry nonetheless. For example, pos mel only provided by pos Malaysia. Although there are big rivals like FedEx and DHL outside, but pos Malaysia offer cheaper prices. First mover advantages * The offset firm to enter incurs lower marketing be because it faces no rivals. Later firm face higher marketing costs because they must compete against the first firm. If the heading of the incumbent raises the marketing costs of the split second firm to enter, then the first firm has permanent advantages and can maintain high prices