Market type – In a business, the market plays an important role because it is a place to meet sellers and buyers in conducting trade or service transactions. But in reality today, the form of a market is very diverse. That is, the market does not have to physically bring together sellers and buyers because there are also products or services that are sold online.
In other words, the meaning of the current market is much broader because sellers and buyers no longer have to meet in the same place. This is the basis that you must know if you want to start a business. Below, Paper.id will explain in more detail the 4 types of markets that exist for those of you who want to enter the business world.
Perfect Competition Market
A situation where the seller and the buyer meet and make a transaction. But in this market type, you are not the only seller selling the product. In other words, you are in a place where there are many traders with similar types of sales so you cannot raise the price arbitrarily because there is a previous agreement.
For example, you can see it in a Tanah Abang market. In that place, you will not find a fabric shop that will have a different price than other shops. Because, they all already have an agreement regarding this respect.
The existing provisions are deliberately made so that there is no social jealousy between one seller and another. That’s why quality must always be a mainstay when you open a shop in a perfectly competitive market like this.
Imperfect Competition Markets
In contrast to perfectly competitive markets, this market type is a situation where there are only one or two sellers who sell and monopolize customers while the rest do not. In short, there is unfair competition, such as lower prices or deliberately giving discounts without notifying other sellers.
Some sellers who control this market will usually put other sellers out of business so that their demand will be even higher. However, this high demand will not be supported by adequate supply because many other sellers have gone bankrupt due to the market monopoly.
The conclusion is, every seller with the same type of product usually has to determine the selling price. This was done so that no one dared to lower the price at will.
Monopoly in Greek means one seller. So, a monopoly market is a situation where there is only one seller who controls all customers. This happens because there is no competition or competitors playing on similar business fields. However, this market type is also specific enough to be difficult to fight.
Some examples of this type of monopoly market are PT. KAI, PLN, PDAM to Pertamina. There are several types of businesses that are not really a monopoly like AQUA. However, they hold the market because all consumers are familiar with the brand and become everyday pronunciation. Can you make a similar business?
Oligopoly is almost similar to monopoly. But the difference lies in how many companies sell the same product. If there is only one monopoly, oligopoly is many companies that sell one type of similar product. Some examples of this type of oligopoly market are transportation equipment companies, cooking oil companies etc.
The competition in the oligopoly market is very tight. Because the more well-known a product is, the more competitors or companies will join the “battlefield”. Remember the modern coffee business? Currently, this type of business is flourishing in Indonesia and the number is increasing every day.
Those are some types of markets that can be data for those of you who want to start a business. Whatever the business, you can still use Paper.id as free accounting and invoicing software. It only takes one step to join the more than 100 thousand business actors who have used Paper.id, namely by clicking here.