Industry economics

com, 2019). I plan to conduct my data collection from websites that contain industry specific data such as Bloomberg and the U. S Census Bureau. The purpose of this paper is to describe the retail industry in terms of its structure, conduct and performance. This industry is one of the critical elements of the interactions between human beings. The Theoretical section explaining the relationship between Industry performance and each of the explanatory variables of structure and conduct. This theoretical framework will be dealing with the ways in which independent variables relate to performance and is a measure of profitability. It will identify the dependent variable and the independent variable. In this case, the dependent Variable is the performance of the industry while the independent variables are the market structure and conduct.

Performance can be measured using net revenue in the industry. 6 billion (emarketer. com, 2019). Retailers are making more investment into technology as well as growing their mobile operations through apps and also improving payments and coupons. In 2018, mobile technology and new technology were the “most cited areas for in-store budget increases” (emarketer. com, 2019). There is a high potential for entry into the retail industry given that the industry is highly oligopolistic and with little competition. These are conditions that can allow new entrants to come into the market without many barriers. Pricing Strategy In studying the pricing strategies in the retail sector, it is commonly assumed that retailers maximize profits in all brands. However, there are various factors that affect retail prices (Chintagunta, 2002).

One of such factors is the effect that the payments from manufacturers to the retailers apart from regular promotions and the effects of the additional costs that the retailers bear for the brand. com, 2019). Initially, retailers thought that the various channels would compete. However, it has been found out that channel integration in the retail sector is a key to success. Retailers also want to carry out content and network integration. There retailers who have shown they are adept in interacting with customers on social media and have interactive platforms where customers are free to discuss things and post their own content (Reply. Therefore, retailers have to invest in research and development to learn about the market and the preferences of consumers so that they can carry out effective marketing campaigns.

The structure and the size of the retailer determine how much resources need to be invested into research and development (Lukic et al. Other factors that determine the amount of resources that need to be put into research and development are size, location, product categories and innovation. The research and development expenses also depend on factors like the types of stores and the categories of products. It is important to understand the factors in the differences so that costs of research and development can be managed effectively in retail companied (Lukic et al. 54 trillion (Ali, 2019). 57% (One. oecd. org, 2018). There is oligopoly in the industry. 60 trillion (Ali, 2019). 57% (One. oecd. org, 2018). There is oligopoly in the industry. There is oligopoly in the industry.