Chapter 1

INTRODUCTION

Business competition takes on different forms depending on the type of

market structure present in a given industry. In the world of economics, the
competition between businesses is not always the same or level. Certain fields
of industry have very different types of markets than that of others. Where one
business could find itself in a field of competition where the playing field is
leveled and easy to gain a foothold within, others find themselves in playing
fields that are heavily stacked to favor one (or several large) industrial player.
The most common forms of market structure that are seen in the economic
world are: perfect competition, monopolistic competition, monopoly, and the
oligopoly. All of these market structures have defining characteristics that
separate them from each other and are all set up in a way that will have a
dramatic distinction on how the competition within that market works. The
defining characteristics of the market structure will be one of the most
important determining factors in how many, as well as, how large the major
players within that particular market become.

A market is the area where buyers and sellers contact each other and
exchange goods and services. Market structure is said to be the characteristics
of the market. It influences the behavior of firms to a great extent and affects
the supply of different commodities in the market. Market structures are
basically the number of firms in the market that produce identical goods and
services. When the competition is high, there is a high supply of commodity as
different companies try to dominate the markets and it also creates barriers to
entry for the companies that intend to join that market.

Market structure plays a significant role in every business present in the

society. It is the determinant whether a certain firm or store will gain profit or
not or simply, the products it endorses will hold attention and interest to
majority of its projected consumers.

Here in Bislig City, it can be noticed that business competition is never

out of trend. A lot of stores are competing for just one or two products with the
same or almost-at-level-digit of prices. The mere question that always arises in
this on-going competition is that how can each of the store survive? This
relevant and most interesting query can only be answered through conducting
a sample study of market structure of a certain kind of business or trade found
in Bislig City.

As people have known, precisely of Bisliganons, dried fish is quite one of

the sellable goods found in the market. A lot also of businessmen are presently
engaged in this kind of trade. And because Bislig City is known to be abundant
in aquatic resources, the production of fish products like of dried fish continue
to flourish and never get out of luster.

With

the

various

factors

implicated

thereto,

it

is

of

immense

corroboration that the analysis of dried fish products in the market of Bislig
City could be a leading potential to justify and give an unambiguous fact on the
roles of market structure in the progression or regression of a business
industry in a certain focus of locality. Furthermore, this will also serve as an
avenue to logically understand the way of trade and the origin of price of
commodities like of dried fish in the world of business.

Statement of the Problem

It is always a dilemma of every business-minded individual on how to

start-up a business. Also, it is always their primary concern on how to manage
it and become a permanent choice or of great interest of their customers or
consumers. The significant of this study focuses mainly on the analysis of
market structure being observed on the number of business industries and
firms not only in the Philippines but also in the other parts of the world. To
further analyze and understand its importance and the way the structure is
being practiced and dealt with, the researchers are conducting a research

analysis on the market structure on various dried fish products found in Bislig
City that would formally answer the following questions:
1. What are the different marketing channels of raw materials and
traditional sun dried fish products in Bislig City?
2. What are the various products and prices of dried fish being produced
and sold in the market of Bislig City?
3. What are the preferences of the customers in choosing and buying the
various dried fish products in Bislig City?
4. What are the economic contributions of dried fish products in Bislig
City?
5. What is the structure of dried fish market in terms of degree of buyers
and sellers concentration?

Objectives
This study aims to provide a critical and better analysis regarding on
the market structure observed in Bislig City like of dried fish products that is
mainly and principally of concern in this research. And to formally explain and
give a clear manifestation of response to importance of this market
arrangement used in business enlargement and productivity, the researchers
are fervently expecting to target and to realize the following objectives:

1. To know and to give emphasis on the different marketing channels

of raw materials and traditional sun dried fish products in Bislig City
2. To classify and to evaluate the various products of dried fish being
produced and sold in the market of Bislig City and how the prices of each kind
of dried fish are made.
3. To distinguish and to clearly assess the preferences of the
customers in choosing and buying the various dried fish products in Bislig
City.
4. To know and to justify the economic contributions of dried fish
products in Bislig City.
5. To know and identify the structure of dried fish market in terms of
degree of buyers and sellers concentration.

Conceptual Framework

This study generally investigate and analyses the market structure of

dried fish products in the locality of Bislig City. This further justify also the

various dilemmas encountered by the suppliers and retailers in dealing with

the product and the remarkable roles of consumers in the continuous flow of
this kind of industry in the city.
Figure 1 shows the variables under this research analysis which are the
independent and dependent variables. The independent variables comprise the
production of fish, variety of dried fish products sold in the market, the
number of of suppliers and retailers of dried fish products in Bislig City, the
demand and supply of dried fish products, expenses per fishing and drying of
fish and distribution of dried fish from source to consumer in the locality of
Bislig City. On the other hand, the dependent variables are the total number of
kilograms of dried fish (per variety), number of consumers, income of suppliers
and retailers, quality of dried fish and the perception of consumers towards
buying dried fish products.

Independent Variables

Dependent Variables

Production of fish

The
total
number
of
kilograms of dried fish (per
variety)

Variety of dried fish

products sold in the market
Number of consumers
The number of of suppliers
and retailers of dried fish
products in Bislig City
Income of
retailers

suppliers

and

The demand and supply of

dried fish products
Quality of dried fish
Expenses per fishing and
drying of fish

Distribution

of

dried

The perception of consumers

towards buying dried fish
products.

fish

from source to consumer in

the locality of Bislig City

Figure 1
The Schematic Diagram of the Study

Significance of the Study

The significant roles of the study include the evaluation of the market
structure, presentation of the distribution system, the list of dried fish
products and the different prices according to its kind, the various preferences
of the customers and the determination of the economic contribution of dried
fish products in Bislig City.

The study is believed to be significant to the

following categories:
To the Fishermen.

The study provides the fishermen reliable and

relevant information regarding on the common fish products mostly retailers

sold and consumers bought in the market.
To the Dried Fish Vendors.

The study serves as a good source of

information regarding on the different seasons on which a certain kind of fish

to be dried is on peak of supply or not. This will also educate and help them
know on what and which particular dried fish to expect that is of most number
to be sold in the market by just basing on the months of highly-seasoned and
unseasoned for fish catching and production to its different sources in the
locality of Bislig City. By this significant and valuable information, they could
able to limit and correctly decide the prices of their dried fish goods in the
marketplace.

To the Consumers.

The study enables the consumers to have the

assurance of the total quality of the product and let them inform as to how the
prices of dried fish has been originated.
To the Government. The study will enable them to know the
importance of dried fish industry in Bislig City and to encourage them to take a
favourable action in supporting and improving the production of dried fish and
on how to improve the production of fish and other marine products in the
locality. By this means, time will come that Bislig City will be known as one of
the giant supplier of dried fish and other marine products in the Philippines.
To the Researchers. The study will be a good source of information
especially when they conduct research in relation with study on market
structure.

Scope and Limitations of the Study

The conduct of this significant study will be done only in Bislig City.
Other neighbouring localities that are not in the scope of this research are not
anymore a prime concern of the researchers. The consumers, the fishermen
and the dried fish vendors are the official respondents of this study which are

ideally coming from the three (3) Barangays of Bislig City namely: Mangagoy,
Poblacion and San Fernando. The data and the information that will be
gathered from them will be used to finally answer the objectives of this study
and realistically, to use as a ground format and basis in establishing
recommendations needed in this research analysis. Furthermore, the number
of respondents to be surveyed by the researchers will be based upon the
gathered statistics of fishermen from the Bureau of Fisheries and Aquatic
Resources (BFAR) Office, the total number of dried fish vendors in Bislig City
Public Market from the City Economic Enterprise and Development Office
(CEEDO) and the present number of population of the three (3) said Barangays.
The collected data from the above mentioned offices will be analyzed for the
calculation of sampling needed for the conduct of research. In terms of dried
fish products, the researchers will just chose the known and the most sellable
dried fish found in the market of Bislig City in order to minimize the time frame
needed in finishing the output of this research.

Definition of Key Terms

Market Structure. In Economics, market structure is the number of

firms producing identical products which are homogeneous.

Perfect Competition.

The situation prevailing in a market in which

buyers and sellers are so numerous and well informed that all elements of
monopoly are absent and the market price of a commodity is beyond the
control of individual buyers and sellers.

Monopoly. Is said to exist when one firm is the sole producer or seller of
a product which has no close substitutes. According to this definition, there
must be a single producer or seller of a product. If there are many producers
producing a product, either perfect competition or monopolistic competition will
prevail depending upon whether the product is homogeneous or differentiated.
Monopolistic Competition.

Is a mixture of perfect competition and

monopoly, because they sharing some of the features of each. Competitive

markets provide effective results, monopoly markets show risk losses. It is also
somewhere in between, not as efficient as pure competition but less risk loss
than a monopoly. In monopolistic competition market has three fundamental
characteristic which is; many buyer and seller, seller offer a differentiated
product and seller can easily enter or exit the market.

Oligopoly. Is a market where there are a few sellers and buyers and firm
are influence which one another. These markets are not monopoly because

there is more than one seller, but there also not a monopolistic competitor
either. In other word, there are a few firm dominate the market.
Consumer.

Is the one who pays to consume goods and services

produced. It play a vital role in the economic system of a nation. Without

consumer demand, producers would lack one of the key motivations to
produce: to sell to consumers

Wholesaler. Is an intermediary entity in the distribution channel that

buys in bulk and sells to resellers rather than to consumers. In its simplest
form, a distributor performs a similar role but often provides more complex
services.

Manufacturer. Entity that makes a good through a process involving

raw materials, components, or assemblies, usually on a large scale with
different operations divided among different workers. Commonly used
interchangeably with producer.
Supplier. Is a person or entity that is the source for goods or services.
Homogeneous.

Which a product is one that cannot be distinguished

from competing products from different suppliers. In other words, the product
has essentially the same physical characteristics and quality as similar

products from other suppliers. One product can easily be substituted for the
other.
Demand. Is an economic principle that describes a consumer's desire
and willingness to pay a price for a specific good or service. Holding all other
factors constant, an increase in the price of a good or service will decrease
demand, and vice versa.

Supply.

Is a fundamental economic concept that describes the total

amount of a specific good or service that is available to consumers. Supply can

relate to the amount available at a specific price or the amount available across
a range of prices if displayed on a graph.

Dried Fish. Fresh fish rapidly deteriorates unless some way can be
found to preserve it. Drying is a method of food preservation that works by
removing water from the food, which inhibits the growth of microorganisms.