Identify the market structure

1. Identify the market structure (perfect competition, monopolistic competition, oligopoly, or monopoly) that best characterizes the company you are evaluating. 2. Include information on the type of market structure you select, such as number of firms in the industry, product homogeneity, barriers to entry, use of advertising, and so forth. 3. Answer the following questions with respect to the industry: o How does the industry structure affect the strategies used by the company you are evaluating? o To what extent does market structure explain the financial performance of your company? For example, is it able to earn higher-than-average profits because of barriers to entry? Is it able to use advertising or product differentiation to maintain its profits above those of competitors? 4. Collect data for the past three to five years on two company-specific variables, such as profits, sales, or earnings per share, that are indicative of company performance. Present the data in a table or graph you create yourself. Do not copy and paste data from other websites, but use the available data to create your own table or graph.


 

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