ECO 365 WEEK 4 presentation paper
Differentiating Between Market Structures
ECO/365
March 9, 2015
Introduction
The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.
History
The Athletic shoe industry had its start in 1892 when U.S Rubber company invented Keds and by 1917 they were being mass produced. Over the years the athletic shoe industry in the United States has evolved from crude shoes with rubber soles to a multibillion dollar industry promoted by Athletes, celebrities, and many other organizations. Athletic shoes commonly referred to as sneakers are no longer just worn during athletic activities. Sneakers have become fashion statements with countless designs and colors. Sneakers are now collectors’ items that cause thousands of Americans to patiently wait in line for their favorite sneaker to arrive. In 1984 Michael Jordan signed a contract with Nike to wear Air Jordans. Even after years of retirement, Air Jordans are still the most famous sneakers ever made. This was a turning point for Nike which until this day holds the largest percentage of the athletic shoe market in the United States.
Market Structure Perfect competition describes several small firms competing with one another, many products, many buyers and sellers, and many substitutes. Prices are determined by supply and demand and the producer has no leverage. In a monopoly there is only one producer or seller for a product. Competition to monopolies may be limited to high prices or copyrights. In the oligopoly market
ECO/365
March 9, 2015
Introduction
The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.
History
The Athletic shoe industry had its start in 1892 when U.S Rubber company invented Keds and by 1917 they were being mass produced. Over the years the athletic shoe industry in the United States has evolved from crude shoes with rubber soles to a multibillion dollar industry promoted by Athletes, celebrities, and many other organizations. Athletic shoes commonly referred to as sneakers are no longer just worn during athletic activities. Sneakers have become fashion statements with countless designs and colors. Sneakers are now collectors’ items that cause thousands of Americans to patiently wait in line for their favorite sneaker to arrive. In 1984 Michael Jordan signed a contract with Nike to wear Air Jordans. Even after years of retirement, Air Jordans are still the most famous sneakers ever made. This was a turning point for Nike which until this day holds the largest percentage of the athletic shoe market in the United States.
Market Structure Perfect competition describes several small firms competing with one another, many products, many buyers and sellers, and many substitutes. Prices are determined by supply and demand and the producer has no leverage. In a monopoly there is only one producer or seller for a product. Competition to monopolies may be limited to high prices or copyrights. In the oligopoly market