The market for IntensCare product Case Study Example | Topics and Well Written Essays - 500 words

The market for IntensCare product - Case Study Example The company enjoys a large market power because of its innovativeness, formalized process of product development and heavy investments in product development (Donnellon and Margolis 2). Presently, MedSys Company has is the leading distributor of the IntensiveCare product in the market. The company has invested huge sums of money, amounting to $20.5 million in developing and launching the product (Donnellon and Margolis 1). Since the product is the most ambitious project in history, MediSys must have the largest market compared to its competitors. Nature of the market structure The nature of the market for IntensCare product is perfect competition. Perfect competition market is where there are many buyers and sellers so that the action of one trader has no significant impact on the market price. Perfect competition market is characterized by mobility of the factors of production such that producers can respond to price signals. Valerie Merz, for example, fears of losing the market share for to the forthcoming product, which are scheduled for release within the year (Donnellon and Margolis 1). Valerie is rational and seek to maximize utility and profits; this is the feature of a perfect competition market. The marketing function is interested in distributing and selling the product. Valerie Merz, the marketing manager was under pressure as she reviewed the agenda of the meeting intended for IntensCare product development team.