Eco 365 Week 3 Research Paper

Competitive Strategies Operating in the Financial Industry
ECO/365
July 02, 2014
Competitive Strategies Operating in the Financial Industry
This essay will explain the difference between market structures, Identify strategies used to best align the market in which the organization competes, as well as demonstration the negative and positive affect a firm may have and how it affects the market strategy. Recommending options to improve profit-making strategies, as well identifying the market structure this firm competes.
Evaluate differences between Market Structures
The definition of market structure is the behaviors and interactions of buyers and sellers with a significant effect of those behaviors and interactions.
There
Maximization of profits where MC=MR. Limits firm compete away economic profits.
Oligopoly; There are few large firms, standardized products; entry into the market is hard.
Identify a group of competitive strategies consistent with the market structure, which best aligns with the market in which the organization competes.
Competitive strategies are strategies to make you and your organization stand above the rest, for instance, when talking of credit unions, one looks at the interest rate offered for certificates of deposits, the duration, and the amount needed to open such account. What services are offered by the credit union, online banking, and bill pay, online deposits, loan types, also such things as locations, ATM fees, and bank card fees, all of these are items not only the consumer looks at, also the competitors look at as well.
Assess how, market structure positively and negatively affects the firm, evaluate the structures competitive strategies.
Negative externalities are inconveniences, harm, or cost to a third party based on actions of others. On the other hand, positive externalities, a benefit received by someone who had nothing to do with generating the
Alternatively, a teller enters a deposit in a wrong account but under the same account holders name, all of this can create severe repercussions causing lose I customers, lack of client base growth, loss of revenue and very importantly the loss of trust of the firm.
Identify the market structure the organization competes.
Credit unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other. Unlike banks, credit unions exist solely to serve their members; and do not have to pay dividends to an outside group of stockholders. Instead, credit union income is returned to members in the form of better rates, lower fees and innovative services.
Credit unions promote the financial well-being of members, including those of modest means, through a system that is cooperative, member-owned, volunteer-directed and not-for-profit – therefore a credit union will look for ways to keep the costs as low as possible for the members while remaining competitive and safe and sound, rather than looking for ways to make a profit for stockholders. Here are some facts about how credit unions