Structure and conduct of the furniture market in the Municipality of Sena Madureira-AC, 2018

Abstract

This study aimed to generate economic information about the furniture market in the municipality of Sena Madureira, in the state of Acre. In specific terms, it analyzed this market according to its structural aspects and the conduct of its firms. To this end, data were collected in 2018 in interviews at the local carpenters. The adopted method addressed the degrees of concentration, product differentiation and barriers to the entry of firms in the market, as well as pricing and investment policies. The results indicated that: (1) this market is moderately concentrated and highly competitive in wood consumption; (2) none of the analyzed companies offered prompt delivery products or raffled prizes among their customers, while all these firms guaranteed the quality of their furniture and provided free shipping to customers; (3) the supply of wood, shortage of labor, demand for documents to act and the lack of demand for more furniture offered in the market would limit furniture when entering this market; (4) firms fixed their prices considering their cost of production plus a profit margin and in the price research among their competitors and (5) all furniture companies intend to invest to buy equipment and improve the quality of products.