The Case:
The processed food industry in Pakistan has made significant progress in recent years. The industry is now focusing not only on traditional processed food items (e.g., cereal, biscuits, jam, pickles, juices, spices, etc.) but also on value added products, such as frozen ready-to-cook/fully cooked food, healthier snacks, dressing and sauces, processed meat and poultry. A large number of firms have come up in the market to cater the rapid changing needs of the customers. Despite of huge competition, this industry has huge potential to generate profits due to high demand of the customers.
Requirement:
Being a student of economics, analyze the topics of market structures carefully and identify the market structure category in which processed food industry fall. Justify your answer by applying the characteristics of that market structure on the given industry.
Answers
HERE IS YOUR ANSWER
The processed food industry in Pakistan has been going through a major change in
recent years. The production landscape is transforming from a focus on traditional
processed food items (e.g., cereal, biscuits, jam, pickles, juices, spices, etc.) to higher
value added products, such as frozen ready-to-cook/fully cooked food, healthier
snacks, dressing and sauces, processed meat and poultry. Thus, a large number of
firms of varying size have come up in recent years, catering to the rapidly changing
needs of highly diversified consumers in terms of age, gender, taste, income, and
social background.1
This trend has gained further support from an expanding network
of retail stores where consumers can find every item under one roof. In this backdrop, this
note examines some new trends in the food processing industry, and discusses key
challenges faced by firms
BE SMART ^_^