Topic Conclusion

The SCP methodology is an adaptation used in the analysis of the market. The market conditions are influenced by the social, economic, technological, factor prices and tastes. These factors influence the method of analysis of markets. Structure consists of the characteristics of the organization of the market which seems to influence strategically the nature of competition and the pricing within a market. It looks into the degree of buyer-seller concentration, entry conditions, and product differentiation. Conduct looks at the pattern of behaviour which enterprises follow in adapting and adjusting to market in which they buy and sell, in particular methods employed to determine prices, sales promotion, and coordination policies and the extent of predatory and exclusionary tactics directed against established rivals and potential entrants. Performance represents the economic results of structure and conduct, in particular the relationship between distributive margins and in costs of production of marketing services.

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This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation