What Are The Examples Of Monopolistic Competition? 

Are you looking for examples of monopolistic competition? If yes, then you are at the right place. Because here we are going to discuss some amazing examples of monopolistic competition. If you are working in the marketing field then you will easily get this term. Have you ever wondered about how companies are selling their products in the market in spite of lots of competition? There are tremendous companies with similar products but still, they are selling their products. How are they convincing their customers and also gaining new customers? It is quite interesting to learn about the monopolistic competition. Let’s start with some common examples of monopolistic competition

What Are The Monopolistic Competition? 

Before understanding the industry examples of monopolistic competition you should know about the monopolistic competition. Well, monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. What are monopolistic competition barriers to entry? So, the barriers to entry in a monopolistic competition industry are low, and the decisions of any one firm do not directly affect its competition. The competing companies’ differences themselves are based on pricing and marketing decisions.  

The basic feature of monopolistic competition is that it exists between a monopoly and perfect competition, combines elements of each, and includes companies with similar, but not identical, product offerings. 

Let’s understand more about monopolistic competition by understanding what are some examples of monopolistic competition

What Are The Examples Of Monopolistic Competition?  

Here we have listed some important examples of monopolistic competition

  1. McDonald’s And Burger King 
  2. Producers Of Bathing Soaps from Various Brands 
  3. Hairdressers 
  4. Bakery Shop 
  5. Running Shoe Market 
  6. Restaurants 
  7. Fast Food Company 

Examples Of Monopolistic Competition  

There are lots of examples of monopolistic competition companies. Let’s understand them one by one in detail. 

1. Producers Of Bathing Soaps from Various Brands 

Producers Of Bathing Soaps from Various Brands 

There are lots of brands of bathing soaps like Lux, Santoor, Dove, Pears, and many more. And each of them is offering a slightly different product from the other. For instance, Dove soap is different from Lux soap but overall they both are bathing soaps. Companies have changed some ingredients and according to these ingredients, they have decided the price of that product. Therefore, every bathing soap has a different price. 

2. Hairdressers 


Hairdressers are one of the most popular and suitable examples of monopolistic competition in the marketing world. There are certain types of hairdressers and each hairdresser has a slightly different type of skill and style thus each of them sells a slightly different product to the consumer in the market. For instance, if there are two types of hairdressers and they both are famous but you chose one out of two as per your requirement and likes. 

3. Bakery Shop 

Bakery Shop

There are lots of bakeries in any city or town and each of them sells slightly different products to the consumer in the market. But, if in a particular area of town, there exists only one bakery, then it can demand a slightly higher amount of price for its products. Firms with the monopolistic competition with their ability can give a greater degree of market share due to which can increase the prices of their products. 

4. Running Shoe Market 

Running Shoe Market

One of the popular examples of monopolistic competition firms is the running shoe market. You might have observed there are lots of brands like Nike, Adidas, ASICS, etc. the market of the running shoe seems to be in full competition on the one hand as there are many brands present competing with each other as there is a low barrier to entry and exit. The manufacturers can increase some features in their products and charge the consumer accordingly for the new feature. If the consumer finds the new feature worth its price then he would buy it otherwise not. 

5. Restaurants 


You can see that there are many restaurants in your city or town and each one of them competes on the quality of food and prices of the product offered in the market. In every area, it can be seen that some restaurants charge $40 for one person, and for the same products another restaurant is charging $90. The price of the product of the restaurants depends on many factors like quality of food, place of the restaurant, other services they are offering to the consumers, etc. 

6. Fast Food Company 

Fast Food Company 

One of the commonly found examples of monopolistic competition number of firms is the fast food companies. Because the companies like Burger King and McDonald’s sell burgers in the market. These two fast food companies sell almost similar types of food which are burgers but are not substitutes for each other. Now which product the particular consumers like the most and which company totally depends on him. Apart from the burger, other products are also sold by these fast food companies including French Fries, soft drinks, etc. this is one of the common examples of monopolistic competition in the US.  

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What Is An Example Of A Monopolistic Competition In India?

(ii) Producers of bathing soaps of various brands such as Lux, Breeze, Palmolive, Hamam, Jai, Godrej, Dove etc. are examples of monopolistic competition.

Is Coca Cola A Monopolistic Competition?

A real-life example of monopolistic competition would be the carbonated soft drink beverage industry, where incumbents such as Coca-Cola compete on branding and advertising.

Is Nike A Monopolistic Competition?

There are several forms of imperfect competition, of which Monopolistic Competition is one. To best explain this, let us think of shoes as a perfect example. Nike, Adidas, Reebok and many other brands all sell basketball shoes at approximately the same price.

Is Starbucks A Monopolistic Competition?

Starbucks and McDonald’s are two companies that operate in markets with monopolistic competition as there are other firms that offer similar products as each of them.

What Are The Features Of Monopolistic Competition?

The main features of monopolistic competition are as under:

  • Large Number of Buyers and Sellers.
  • Free Entry and Exit of Firms.
  • Product Differentiation.
  • Selling Costs.
  • Lack of Perfect Knowledge.
  • Less Mobility.
  • More Elastic Demand.


By reading this article, you might have got the concept of monopolistic competition. There are lots of monopolistic competition advantages and disadvantages associated with it. One of the important monopolistic competition characteristics is that each company produces the same product but differentiated products by adding small changes. In this type of competition, the involved competitors compete based on product quality, price, and how the product is marketed. Thus the above-mentioned examples of monopolistic competition structure in the different industries.  

Is McDonald’s monopolistic competition

What are the examples of monopolistic competition in India