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Competition And Markets Module 5 Slp

926 words - 4 pages

Competition and Markets Module 5 SLP
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Competition and Markets Module 5 SLP
The firm to be addressed in this case is Travelodge. It is a franchise firm which was founded by Scott king in the year 1939 and later began franchising in the year 1966. It offers exceptionally high quality products and services. In addition to its services, it is committed in its work, enabling it to acquire world-class attention and everybody interested to know more about it and also experience its services and products. Travelodge has grown at a very alarming rate, and it is in this view that we are interested to know more about it.
There are several market structures known. They ...view middle of the document...

It boasts of supremacy as it is the only seller with no competition, and finally it makes it hard or difficult for any firm to establish due to its pricing. The firm is to operate in a monopoly market structure; that is being the only seller of the services and products, presence of small firms trying to rise may to some extent contribute a great deal of threat to the company (Mithani, 2010).
Emergence of these small firms may come up with policies that may to some extent attract some customers who in the long run would defect from Travelodge. Every customer is very important, and loss of one would mean that all could also leave. It is with this respect that the firm should ensure that the policies they enact and the prices of goods and services that they offer should be favorable and more comfortable for its clients. The absence of this will make the clients have a negative view of the firm (Reis & Farole, 2012). Moreover, once a small firm emerges the consumer will prefer services from the emerging firm. In the long run, it will make Travelodge to incur losses. As a result, the whole market structure will change resulting in a competitive market structure. The consideration of a number of factors enables Travelodge to increase its market power.
The firm should consider advertising its products and services so as to raise awareness to the public. Advertising occurs through several channels such as through media, use of billboards, setting up a good marketing and sales department and also through sponsorship of community based activities. The improvement of the quality and services of the products attracts more consumers. To achieve this, the company should consider improving and adapting better technology that would...

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