Microeconomics

The ServiceMaster Company is concerned with the provision of a wide range of services to not only residential but commercial customers as well. Mainly, its services include but are not limited to facility management services, commercial cleaning as well as restoration services. In this text, I describe the type of market ServiceMaster operates in as well as the competition the company faces; if any. I also make submissions on how I think the company can increase its market power.

The Type of Market in Which ServiceMaster Operates

ServiceMaster operates in a monopolistically competitive marketplace based on a careful examination of the specific characteristics of the company as well as the marketplace it operates in. Rittenberg & Tregarthen (2009) define monopolistic competition as a situation where we have a large number of firms producing products which are similar but which are in one way or the other differentiated. Further, they...
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