Market Structure Of A Business

1357 WordsMay 5, 20166 Pages
“Today, the forces of competition, technology, and globalization have converged to spur innovation and to transform the way business is done in the securities industry.” (Arthur Levitt) Market structure is best defined as the organization and other characteristics of a market. How a business succeeds is based on the market, they choose to enter into. Another tool to analyze a company’s market structure, which includes the bargaining power of buyers, bargaining power of suppliers, threat of new competitors’ entering into the market, threat of substitutes and the intensity of competition. Some of the most important work in the development of economic theory is associated with the study market structure. From the perspective of a platform owner, when it owns part of the business on one side of the market, there are no straightforward answer as to whether having the rest of the business owned by another is advantageous or not. In my opinion a perfectly competition market is the best to open a business. I have outlined my thoughts and why a perfectly competitive market is the best market. A perfect competing market is a hypothetical market where competition is at its greatest possible level. Neoclassical economists argued that perfect competitive would produce the best possible outcomes for consumers, and society. The best market to have a business grow and develop in, would be a prefect competing market. There are many key characteristics of perfectly competitive markets to
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