Perfect competition
Perfect competition is a market where there are almost an equal number of people buying with that of the sellers. In this kind of market structure, various criteria are met which include; all the firms or sellers have similar commodities, the firms do not dictate the price, the market prices of the commodities cannot be controlled, a relatively smaller market share and the entry and exit is free. Perfect competition is a market where all the other kinds of market structures are compared effectively (Arnold, 2010). In this market structure, the consumers have an advantage since they can get the commodities at any other competitor market. This is the major reasons why the market has no predefined price but variable market prices accordingly. The difference in pricing helps new companies join at any time they want, and they can also exit the same market when they will.
In agriculture, perfect competition is the main market structure. The number of buyers and sellers is high therefore making it a perfect or as it is also known, a pure competition. A company like Tyson is a good example of a company dealing in the pure competition market structure. Tyson deals with marketing and exportation of beef, pork and chicken and this has made it the second largest company in processing and marketing of this commodities. Currently, Tyson is the first in the exportation of beef outside the United States (Riffel, 2008). The main reasons as to why it has succeeded in this market are the advantage of merging and associating with other companies in its line of business.
Tyson Foods in the year 2001 acquired a company by the name IBP, Inc. which was the largest packer of beef and the number two in pork processing. In the recent times, the company has also acquired the Hudson food company, Prospect farms, Garrett Company, Wilson foods, Cobb-Vantress, Lane poultry, heritage valley, holly farm, Ocoma foods, and many others. Using the market already created by other small firms, Tyson Foods has been able to cut its cost of searching for new markets and concentrated in the acquisition. Though the company had a history of success since the 1930s when it was established, merging presented the best opportunity for the company to become the largest exporter of its commodities (Riffel, 2008). Certain measures can be taken to create awareness to as many people as possible and in that sense, increase the sales turnover. Tyson Foods has used that to its advantages by organizing events and giving corporate charity to the needy, contributing to the non-profit organizations with the aim of success and this has worked on its part (Arnold, 2010). In perfect competition market structure, the aim of businesses involved is to create a bigger market for the products. Big markets can be created by having as many stores as possible where customers can get their preference from without a struggle. Tyson Foods has opened over 300 stores worldwide to create a customer base for its commodities.
Company name
Tyson
URL
Tyson Foods is currently the first in the supply of protein and all prepared food products which have quality and a very great taste in all its products (Riffel, 2008). The company has also opened other poultry production centers in India and China. In both countries, the company has established its brand as the best in offering food solutions with quality benefits.
References
Arnold, R. A. (2010). Microeconomics. Mason, OH: South-Western Cengage Learning.
Riffel, B. E. (2008). The Feathered Kingdom: Tyson Foods and the transformation of American land, labor, and law, 1930-2005.
