Differentiating Between Market Structures Essay

Differentiating Between Market Structures Essay

Length: 1014 words (2.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

All organizations fall into one of four different market structures; perfect competition, monopoly, monopolistic competition, and oligopoly. The market structure an organization is grouped in is based on characteristics such as competition, products, and ease of entry into the market. Powerlifting is a specialized sport with only a few companies selling the custom equipment required. Titan is one of the companies that sell powerlifting equipment. The following paragraphs will identify which market structure Titan belongs to and how that market structure compares to the others, identify three competitive strategies for Titan, evaluate the competitive strategies in Titan’s market structure, and make recommendations for how Titan can maximize profits.
Identify Market Structure
Oligopoly
Powerlifting is a specialized way of lifting weights. One of the companies that supply the equipment necessary for the sport is Titan. Titan falls into the oligopoly market structure. A limited number firms and each firm using the decisions made by other firms to make their decisions characterize an oligopoly (Colander, 2010). The International Powerlifting Federation, otherwise known as IPF, must approve equipment in a powerlifting meet. There are only eight companies approved by the IPF and five of those only for knee sleeves. There are only three companies approved to sell squat, deadlift, and powerlifting suits and one of those is Titan (International Powerlifting Federation, 2013). Since there are a small number of companies approved by the IPF, and the companies pay close attention to what each other are doing when making decisions oligopoly best describes Titan.
Monopolistic Competition, Monopoly, and Perfect Competition
Titan does qualify a...


... middle of paper ...


...rs and their equipment needs and fits the oligopoly market structure. Titan would benefit from a couple of competitive strategies giving them a greater competitive edge in the market. No matter which market structure a company falls into they will benefit from pursuing competitive strategies to increase their profit margin, and be a more effective business.



References
Colander, D.C. (2010). Economics (8th ed.). Retrieved from The University of Phoenix eBook Collection database.
International Powerlifting Federation. (2013, November 21). Approved list of apparel and equipment for use at IPF sanctioned competitions. Retrieved from http://www.powerlifting-ipf.com/17.html
Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2011). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (18th ed.). New York, NY: Mcgraw-hill/irwin.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Differentiating Between Market Structures Essay example

- Markets are different, without these different markets there would not be any structure. Being able to understand different markets and its language, like demand, supply, average variable cost and marginal costs we can better prepare for economic and financial future. The market structure and the interaction that occurs can be defined by the number of businesses, and barriers new firms have when entering a particular market. Perfect competition, monopoly, monopolistic and oligopoly are four forms of market structures recognized by economists....   [tags: Economics]

Strong Essays
1431 words (4.1 pages)

Essay on Economic Market Conditions: What are Monopoly and Oligopoly

- Monopoly and oligopoly are two economic market conditions. Both of them are likely to co-exist in our world and they differentiate from each other. In this written paper, I will describe the two market conditions. I will describe the characteristics of each one of them in terms of number of suppliers, product differentiation, advantages and disadvantages and the most challenging types of barriers to entry that exist in both of the market structures. A monopoly is a market structure in which there is only one producer/seller for a product or service....   [tags: market structures, consumers]

Strong Essays
1401 words (4 pages)

Different Types Of Market Structures Essay

- Companies across the world conduct business within certain market structures. These market structures have been established based on factors such as, the number of sellers within the market, the barriers that exist within the market that create difficulty for new companies to come into the market, the types of products that are being sold, the nature of the competing companies, and the pricing power that the companies within the market have. This paper will examine the different types of market structures organizations operate in and evaluate the differences between market structures....   [tags: Perfect competition, Economics, Monopoly]

Strong Essays
1218 words (3.5 pages)

Different Types Of Market Structures Essay

- Introduction Four different types of market structures would be perfect competition, monopolistic competition, oligopoly, and then the monopoly. Perfect Competition The perfect competition is a kind of market in which there are many companies or players that are making an identical kind of product. By definition that means a market structure in which the following five criteria are met: 1) All firms sell an identical product; 2) All firms are price takers - they cannot control the market price of their product; 3) All firms have a relatively small market share; 4) Buyers have complete information about the product being sold and the prices charged by each firm; and 5) The industry is charact...   [tags: Perfect competition, Monopoly, Supply and demand]

Strong Essays
1807 words (5.2 pages)

Market Structure And Product Differentiation Essay

- Question No. 1 INTRODUCTION Market structure is the organizational characteristics of the market. Market structure studies the number of firms in the market, market share of the firms, nature of competition, pricing, types of consumers, product differentiation, et cetera. Product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering OR to offer a product which stands out in the market (Bhasin, 2016). In economics, there are basic 4 types of market structure....   [tags: Economics, Monopoly, Perfect competition]

Strong Essays
1692 words (4.8 pages)

Essay about Maximizing Profits in Market Structures

- Maximizing Profits in Market Structures Maximizing Profits in Market Structures Competitive Markets The basic characteristics of a competitive market are one of many suppliers provides basically the same goods or services. There are so many suppliers and so many consumers that one supplier alone cannot influence the market prices. Each supplier, or price taker, is at the mercy of the current market conditions at any given time. (N. Gregory Mankiw, 2010, p.290).This market structure makes it necessary for suppliers in a competitive market to somehow make the goods or services more desirable to consumers than its nearest competitor....   [tags: Economics]

Strong Essays
1242 words (3.5 pages)

Understanding Market Structures Essay

- I have been hired as a consultant by the mayor to look at the various market structures. In order to fully analyze the market structures I will explain in depth the different types of market structures, one example of a market structure here in Smallville, Ohio, I will also share how high entry barriers into our market will affect the profitability in the long term sense, competitive pressures that are present in high barriers to entry, the role of the government and how it affects each of the different market structures ability to price its products and the effect of international trade on each of the different market structures....   [tags: competition models]

Strong Essays
2662 words (7.6 pages)

Major Market Structures Essays

- During the initial phase of starting up a business, there are many factors to weigh in. If you desire a particular kind of lifestyle, then one of the major factors to consider is what kind of market you would like to be in. There are four major market structures, perfect competition, monopolistic competition, oligopoly, and monopoly. All of these markets have positive and negative attributes, including but not limited to, barriers to entry, how many sellers are in a particular market, and the stress of running a business while keeping a keen eye on product pricing....   [tags: Economics]

Strong Essays
2256 words (6.4 pages)

The Main Categories of Market Structures Essay

- The Main Categories of Market Structures Recent industry analyses typically have strong relation with economic theories. There is a theory, belongs to microeconomics, divides industries into categories according t the degree of competition that exists between the firms within the industry, i.e. the theory of Alternative Market Structures. This essay based on three questions divides into 3 parts to explain and evaluate the questions. This essay (PART A) outlines the main categories of market structures, and shows the theoretical features of two of them, i.e....   [tags: Economy Economics U.K. Supermarket Essays]

Strong Essays
1662 words (4.7 pages)

Market Structures Essay

- Market Structures McConnell and Brue (2004) describe four market structures that companies align themselves with during the course of their corporate lives. This paper will give examples of the four market structures: Pure Competition, Pure Monopoly, Monopolistic Competition and Oligopoly. Companies may move from market structure to market structure over the course of growth and time. This movement between structures may be the result of product changes, introduction of competition or consumer interests....   [tags: Business Marketing]

Free Essays
1986 words (5.7 pages)