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Title: An Analysis of the Market Structure and Behavior of Competition of the Detergent Industry of Thailand
Authors: Nark-uam, Worachart 
Issue Date: 1994
Publisher: University of the Thai Chamber of Commerce
Source: Worachart Nark-uam (1994) An Analysis of the Market Structure and Behavior of Competition of the Detergent Industry of Thailand.
Abstract: The objectives of the study were to examine the market structure and the producers' behavior of competition in the detergent industry in Thailand. The data were primary data from wholesalers and retailers, and secondary data from producers, Ministry of Commerce, Bank of Thailand and related journals. The analysis of eleven year data from 1982 to 1992 by market concentration ratio showed that the detergent industry market was oligopolistic consisting of 3 big producers and 4 small producers. The average market concentration ratios were gradually declining during last few years because a small producer was producing a concentrated detergent and selling to consumers. The big producers had once collectively bargained the government to set higher retail prices for them and so they all set the same highest ceiling retail prices. The competing was thus performed by containing more extra volume and sometimes by reducing wholesale prices. The price leader follower and leader without follower policies were alternately introduced to the wholesale market. The recommendations were as follows: The government should recognise the quality of the standard products from many produces and convinces the customers that those brands are the same standard quality. By this mean the market share will be distributed to smaller producers. For the big producers, they should agree to reduce the advertisement budgets in order to reduce their costs without reducing sale volumes. By this policy, the retail prices will be reduced together with the same or higher profits to big producers.
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Appears in Collections:GS: Theses / Independent Studies

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