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The market for manufacturing and supply of shoes is a perfect completion. In a perfect compact market structure, there is free entry into the market(Azevedo & Gottlieb, 2017). This market structure is associated with high levels of competition and rivalry from several firms in the market. If a firm does not put in place proper mechanisms to keep itself in the market, it may find itself out of the market due to being pushed off by rival firms. Keds was near oblivion because in 1980 because of high competition from rival firms such as Adidas, Brooks, Reebok, and Nike. Keds were undergoing a situation of completely being forgotten in the market for shoes. There are various mechanisms that the firm could have utilized to turn the situation around or to be able to compete favorably in the market.

One of the methods Keds could have utilized to manage the situation is the pricing mechanism. Reviewing prices is one of the best options to win customers back. In a perfect completion, prices are determined by the forces of demand and supply. If I were at the management of Keds, I could have reviewed the prices to ensure that the company doesn't sell at a price higher than those of its rivals.

Another effective mechanism I could have employed is rebranding. New things in the market attract a large number of customers. Rebranding involves adopting a new term, name, design, symbol, or concept for the firm and its products(Agha, Goldman & Dixon, 2016). The intention of rebranding is to make a new and differentiated identity in consumers' minds. Rebranding could help in making the customers switch back to the company.

Also, the company could have improved the quality of services and products it was offering to its customers. Providing higher quality and more enticing services to customers is an effective mechanism of solving customer churn problems to the firm. Therefore the performance of this company would have been enhanced by improving product and service delivery and customer.

In conclusion, there are effective methods that a company or firm can use to be able to compete favorably in a perfect competition market structure. The strategies include changing prices, rebranding, and improving the quality of products and services.

References

Agha, N., Goldman, M. M., & Dixon, J. C. (2016). Rebranding: The effect of team name changes on club revenue.European Sport Management Quarterly,16(5), 675-695.

Azevedo, E. M., & Gottlieb, D. (2017). Perfect competition in markets with adverse selection.Econometrica,85(1), 67-105.