'Eastern Tobacco Company Essay\r'

' foundation garment\r\nWhy the easterly baccy ac attach to in Egypt is an ex vitamin Ale of monopolistic ambition?\r\n eastern tobacco plant plant union is know as the largest baccy producer in Egypt. The participation produces contrasting products such as cig argonttes, molasses tobacco, pipe tobacco and cigars (Oxford line Group, 2008). Addition altogethery, it produces other products that ar related to cigarettes. These may allow homogenized and filter rods tobacco (Owen &type A; Pamuk, 1998). Their entire products are divided into devil categories. These may take topical anaesthetic and exporting products. The company is known as the largest company producing large amount of tobacco in Egypt Thus, it faces stiff disputation by local and international companies that produces tobacco.\r\neasterly Tobacco order is an fashion model of monopolistic competition (Owen & Pamuk, 1998). This is due to the accompaniment that all tobacco industry is categorise i n monopolistic competition. One of the viable reasons that make east Tobacco fraternity to be categorized in monopolistic competition is the particular that there are quite a large bout of companies that are producing the equal products; however, they have differentiated them. This means that all companies under tobacco sector are satisfying the market demand for tobacco (Solow, 1999).\r\nAnother reason that makes eastern Tobacco Company to be a impregnable usage of monopolistic competition is the position that it brings out differentiated products that are middling close substitutes for each other (Oxford Business Group, 2008). For instance, the company brings into the market different types of cigarettes. These may include homogenized and filter rods cigarettes. It similarly produces different types of tobacco, for instance, molasses tobacco, pipe tobacco.\r\nThus, the company has angiotensin-converting enzyme of the characteristics of firms that are categorized in th e multitude of monopolistic competition. Due to the fact that products are of close substitutes, there can be any reduction of damage. This can be seen in Eastern Tobacco Company as they can be in a position to reduce the price of their products (Owen & Pamuk, 1998). This helps them to attract large number of customers and thus, they are perceived as the largest company in Egypt producing tobacco.\r\nOne of the major characteristics of monopolistic competition is the fact that there are a large number of dealers (Solow, 1999). They fly the coop to sell differentiated products. This can be evidenced in tobacco industry, as there is quite number of sellers that sell different types of tobacco. For instance, many local companies are selling same products as Eastern Tobacco Company. Thus, there is a different seller that sells tobacco like Eastern Tobacco Company. This means that Eastern Tobacco Company have achieved this characteristics of monopolistic competition where many sel lers selling differentiated products persist the industry.\r\nEastern Tobacco Company does not have price competition. This is due to the fact that the company has the freedom to win everyplace its entire customers. For instance, large number of customers prefers Eastern Tobacco Company as they proffer after sales services. This is a dapple where a buyer purchases large tonnes of tobacco and the company offers to take them to his or her home. crack after sales services is champion way that Eastern Tobacco Company uses to attract large number of customers.\r\nFrom the supra point of view, it is clearly evidenced that Eastern Tobacco Company has all characteristics that monopolistic competition is associated with. Thus, it can be classify as a good example of monopolistic competition. For instance, the company has similar products except has differentiated them to different brands. These may include molasses tobacco, pipe tobacco (Oxford Business Group, 2008). Therefore, it is an example of monopolistic competition.\r\nReferences\r\nOwen, E. R. J., & Pamuk, S. (1998). A level of Middle East economies in the twentieth century. London: I.B. Tauris Publishers.\r\nOxford Business Group. (2008). The Report: rising Egypt 2008. London: Oxford Business Group.\r\nSolow, R. M. (1999). Monopolistic competition and macroeconomic theory. Cambridge [u.a.: Cambridge Univ. Press.\r\n \r\n'