Differentiating Between Market Structures Essay

Differentiating Between Market Structures Essay

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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
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.

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.

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