Author(s): Radzi Luo
Market structures significantly influence business performance, shaping competitive behavior, pricing strategies, and innovation. This article examines the four primary market structures—perfect competition, monopolistic competition, oligopoly, and monopoly—and their impact on business operations. It also explores competitive strategies such as cost leadership, differentiation, and market focus, highlighting their role in sustaining long-term profitability. Businesses must adapt their strategies based on market conditions to achieve a competitive edge. Understanding the interplay between market structures and strategic decision-making allows firms to optimize operations, enhance market positioning, and drive sustainable growth.