Are you a demanding traveller? Do you love music? Then your answer is an MP3 Player, a device that allows you to listen to your favorite music on the go. There's nothing like putting on your headset, relaxing, and listening to refreshing music when you're exhausted. This is when an MP3 player comes in handy. MP3 players have dominated the market in a huge way and companies would be ready to pay a considerable amount for some out-of-the-ordinary innovations that would take their company all the way to the top. Any company that makes MP3 players faces some of the toughest competition on the market. MONOPOLISTIC COMPETITION In a monopolistic competitive market, the products of different sellers are distinguished on the basis of brands. Here product differentiation has given rise to an element of monopoly for the producer on the competing product. As such, the manufacturer of the competing brand may increase the price of the product knowing full well that customers loyal to the brand will not leave it. This is possible since the products here have no effective substitutes. However, since all brands are close substitutes for each other, the seller would lose some of its customers to these competitors. In the past, many businesses have faced the problem of having a bag full of customers, and due to close competition, end up having only a few. Most entrepreneurs find that dealing with their competitors is the most difficult part of running a business in a monopolistic market. So the monopolistic competitive market is a mixture that projects both monopoly and perfect competition. MP3 PLAYERS AN EXAMPLE OF MONOPOLISTIC COMPETITION An mp3 player is a type of digital audio player that falls into the broader category of pmp devices. It's... middle of paper... a quick trip. For these reasons the mp3 player has become part of life. Apple has dominated the market in all aspects and will continue to do so until it encounters stiff competition. BIBLIOGRAPHY1. Kraemer, Kuala Lumpur; Derick, J. (2002). Strategic use of the Internet and electronic commerce: Cisco Systems. Journal of Strategic Information Systems, pp. 11, 5-29.2. Beg, David. (2002). Economy seventh edition: Monopolistic competition, pp. 9,123-1243. Maccormack, A.; Verhanti, R.; Iansiti, M. (2001). Developing Products on “Internet Time”: The Anatomy of a Flexible Development Process. ManagementScience, 47, 1, 133-150.4. Hamel, G.; Prahalad, C. K. (1994). Competing for the future. Boston: HarvardBusiness School Press.5. Howard Bill (2009); iPod Contest available at http://www.pcmag.com; Access to 1.12.2010.