Question

Provide an example of a market in which you participate (as a customer, or any other role).  What keeps this market together, and what forces act upon this market to keep it in a state of constant change?  Use real examples from your personal experiences.

Answer 1

One example of the market is cellphone industry, of that I have been a customer. The nature of products offered by the market, characteristics of the players that are common nature and specific target audience, keep this market intact and together. It is a monopolistic market where firms rely on differentiated products to sustain in the market. Besides, firms can enter and exit the market also. These are the aspects of the cellphone industry that make it to be together.

The technological forces, innovation and creativity to deliver the best products, make the industry to change on the regular basis. For example, major players like Apple and Samsung always come up with the latest designs, features and functionality to come up with the new models that bring a change in the industry. Earlier it was feature phones, dominated by Nokia. Then, it was Apple, came up with the iPhone model and later on, it was joined by Samsung.These companies always come up with new models to make other players to toes and change continuously.