Market Structure

There are several markets in our economy and the markets have composed to a market structure within the industry. The competition for market structure differs from one extreme to another. Companies have to get familiar with their product, customer and place rank in their specific market. When companies get familiar with their structures they will become successful with their business. When a company is being ran they also have to make the best decisions when it comes to labor and production so the company can make the most profit they can. I will be explaining the differences of the market structures for Ford Motor Company.

The type of structure the ford motor company is in is an oligopoly. There are only a few dealers in the market and that sell a similar product to each other. Since there are few competitors the major car companies are huge in size. The car industry sells and buys different type of cars the variety of the care are eco-system, luxury, small and big cars. In the oligopoly market structure, all companies involve compete with each other just to get their share in the market. While each company may have their specialty car they produce some car makers can really compete with each other like Ford can compete with BMW and Volkswagen because they don’t have a luxury brand car they are more of an economy brand. The oligopoly is a good way for Ford and carmakers to introduce new products. When gas prices were extremely high car makers came out these energy sufficient cars to help improve mileage on the rod and to use less gas. Ford didn’t get on the band wagon at first when the other companies were making fuel-efficient cars. Instead For Motor Company was focused on making bigger and better trucks. When they realized their production was not even and they were still sitting on a lot of inventory the realized they had to do something. Fords market structure has improved in the last few years making cars that get more highways for the gallon and also building more energy efficient cars. In order For ford to have a fair share in the market place they have to make sure they watch their competitors and meet the consumer’s demands. In order for them to meet the demands of consumers Ford must have a couple of strategies in place so they can meet they can maximize their profits.

There are several strategies they can look in to and put to use. One strategy the company can use is because each company affects each other strongly they have to choose their outcome they must act quickly for a response. They can use advertising on billboards, magazines .TV commercials and any others you can think of. Also Ford