Competitive Strategies Operating in the Financial Industry

Essay by kingkjunUniversity, Bachelor'sA-, September 2014

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Competitive Strategies Operating in the Financial Industry

ECO/365

July 02, 2014

Competitive Strategies Operating in the Financial Industry

This essay will explain the difference between market structures, Identify strategies used to best align the market in which the organization competes, as well as demonstration the negative and positive affect a firm may have and how it affects the market strategy. Recommending options to improve profit-making strategies, as well identifying the market structure this firm competes.

Evaluate differences between Market Structures

The definition of market structure is the behaviors and interactions of buyers and sellers with a significant effect of those behaviors and interactions.

There are four types of market structures; each one has specific behaviors, which identifies that particular market structure.

Types of market structures are:

 Perfect (pure) completion; where there are many sellers and the entry and exit of the market is

free, transparent and free information.

 Monopoly; A single seller with a unique product, no substitution for the product.

The firm controls

the price and quantity the entry and exit of the competition is blocked.

 Monopolistic competition; Consist of multiple firms with similar products, the firm is facing a

down slope demand curve. Maximization of profits where MC=MR. Limits firm compete away

economic profits.

 Oligopoly; There are few large firms, standardized products; entry into the market is hard.

Identify a group of competitive strategies consistent with the market structure, which best

aligns with the market in which the organization competes.

Competitive strategies are strategies to make you and your organization stand above the rest, for instance, when

talking of credit unions, one looks at the interest rate offered for certificates of deposits, the duration, and the

amount needed to open such account. What services are offered by the credit union, online banking, and bill...