Differentiating Between Market Structure Essay Example | Topics and Well Written Essays - 1000 words

Differentiating Between Market Structure - Essay Example Beachbody operates under a perfect competitive market whereby a number of a companies has been in the industry to provide this highly demanded product by the consumers. In this field, a number of firms are in operation to provide this demanded products by the customers. Similarly, many customers are lining up to get the best services from these firms in terms of their needs. When running such a business, the decision must be made to ensure the success of the business and maximization of the profits. Understanding the market structures and some of the fundamental economic principle that are in operational in such a market helps Beachbody to make informed decisions that have profound potential to impact all the processes of the business from sales to consumer retention. In reality, a perfectly competitive market rarely exists. In essence, the concept associated with perfect competition is used to provide a benchmark for analyzing this market structures. A firm is operating in a perfectly competitive market conducts business in a market with many buyers and sellers. The products in the market are almost identical with just a few differentiation and have very few barriers to market entry if any. The firms in such a market face an entirely horizontal demand curve. This translate to the fact that the firms act as the prices takers in the market. As long as any firm is in operation it can sell as much or as little as it wishes. However, the management must understand that setting up the prices above the market price will lose the customers to the competitors. The customer would purchase the exact product from another firm hence negatively impacting on the sales of the company. On this note, Beach body, having a number of competitors in the market such as Jenny Craig, Inc., Weight Watchers International, Inc. and Nutrisystem, Inc. need to set up the prices in a way that