The Four Market Structures
Today we will be covering another piece on the nuances of market competitiveness within different market structures. This topic is also prevalent in the field of economics.
You will recall a few weeks back, i spent some time breaking down the concept of competitive advantage. The subject of market structure, is somewhat related to this topic, and one would do well do understand how each topic relates. I would suggest listening to/reading that previous one using the link provided if you missed it, as today’s newsletter will make a lot more sense.
When we want to further our understanding of the ‘bottom up’ approach to analysing companies it is often not enough to simply read the financial filings, but we must also understand the competitive forces that face these firms, as well as the nature of the market they operate in. For instance, consider the airline manufacturing business in the US and EU. This industry is essentially a duopoly, between two firms; Airbus and Boeing.…