Part 1: Select a listed firm and familiarize yourself with the operations of the
ID: 467111 • Letter: P
Question
Part 1: Select a listed firm and familiarize yourself with the operations of the firm, using ITT Tech Virtual Library or any other credible source. Based on your research, discuss the following points: 1. Identify the business and determine the general type of market structure—perfectly competitive, monopolistically competitive, oligopoly, or monopoly. 2. Name the attributes of this business that you believe determine its market structure. 3. Identify the possible reasons for which this firm follows this type of market structure. Part 2: Imagine you are the CEO of the competitor of the firm you researched in Part 1. With this brief in mind and based on your responses in Part 1, discuss the following questions: What market structure do you believe would best suit your firm? If given a choice, would you like to compete or collaborate with the firm you researched, considering you both are operating at a similar scale? What factors shaped your decision for competing or collaborating with the researched firm in Part 1?
Explanation / Answer
Let us consider one of the listed firms. Tata Consultancy Services.
The business that they are doing are software support, software development, outsourcing projects, infrastructure support, data base support and other Information technology related services. They started this business as a small concern. Now they are one of the giants in this industry. Their market structure is now spread throughout the world. They are not confined to just one geographical location of operation. They are spread world wide. The market structure is so huge, that it does not come under a single person responsible for it. Different people are given different responsibilities based on the geographical location of operation.
The attribute of the business that defines that market structure is how well you service your customer, and to what extent you have your customer happy and satisfied. It is a customer based service industry. If your customers are happy, then your market structure will grow gigantically according to it.
Since it is a customer service based industry, the firm does not have any other option but to follow the service based market structure. It is also not a monopoly kind of business. There are competitors lying all the way to take away the market share in the business.
As a CEO of the company the current market structure will be the best suited for the company. There is no other option to deal with.