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University of Phoenix Material
Differentiating Between Market Structures
The purpose of this assignment is to identify applications of economics by evaluating strategies
acted upon by firms.
Assignment: Differentiating Between Market Structures in an Organization
of Your Choice
You will apply important microeconomics concepts toward the competitive strategies of an
organization that operates in an industry of your choice. You will evaluate the differences
between market structures and identify a group of competitive strategies consistent with the
market structure that best aligns with the market in which the organization competes. You will
assess how the market structure positively and negatively affects the firm and evaluate the
efficacy of the structure’s competitive strategies.
Complete the University of Phoenix Material: Differentiating Between Market Structures Table
located on the student website. Compare the various characteristics of the market structures by
completing the table.
Write a 1,050 – 1,400-word paper
Select an industry. Identify an organization in that industry. Identify the market structure in which
this organization competes. Clearly indicate why the market structure was decided upon, and how
this market structure differentiates from the other alternatives.
Identify three or more competitive strategies of your choice that may be used by the organization
to maximize its profits over the long run. Evaluate the efficacy of these strategies in the market
structure you identified.
Make recommendations related to the strategies the organization might consider to maximize its
profits.
Format your paper consistent with APA guidelines.
On my last paper I received a 70% and need to ensure this does not happen again. Here
are my instructor’s comments on the last paper:
“Unfortunately I had trouble following parts of your analysis. A big part of the problem is the lack
of an introduction that tells the reader what you are going to do, why you are doing it, and how
you plan to proceed. You needed to present the points you are trying to make in a logical, stepby-step progression. This was not the case and I had to reread the paper several times to try to
figure out the points you were trying to make. This should not happen.”
PLEASE REVIEW THE INSTRUCTIONS AND EXPECTATIONS ABOVE AS WELL AS MY
INSTRUCTORS COMMENTS ON THE LAST PAPER AND ENSURE THAT THIS PAPER
FOLLOWS THE SUGGESTIONS AND DIRECTIONS FOR THIS ASSIGNMENT.
SEE THE PAPER BELOW:
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Differentiating Between Market Structures in Boeing Corporation
The company chosen for this assignment is the Boeing Corporation (NYSE: BA).
This company primarily manufactures airplane for civil and military purposes as well.
This company also makes satellites for civil and military purposes. This company is a
manufacturing concern, and its market structure is that of a duopoly. The reason for this
belief is because it is a duopoly (A market structure where there are only two
manufacturers).
According to According to University of Pennsylvania Wharton School (2008),
“the characteristics of oligopoly markets include few firms, above‐normal profits, and
high barriers to entry. Barriers to entry include economies of scale and scope, high
capital requirements, product differentiation, patents, government regulation, cost
considerations (e.g., raw materials, a unique location), and access to distribution
channels” (Theory).
After extensive research and analysis, it turns out that Bowing and Airbus are the
two main competitors who compete for the civil and military aviation contracts. This
status quo has been there because the cold war although the Russians have two aircraft
manufacturers (Yakolev and MIG industries). These Russian companies are inefficient
and substandard in their production techniques and the products they manufacture.
Boeing has been going through some rough patches. There are some remedial steps the
company can take to make its position better off as compared to before.
The proposed changes that shall make the Boeing Company competitive as
compared to before are as follows:
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The first competitive strategy for Boeing is to keep its main consumers,
especially those in Asia and the Middle East. For that Boeing needs to go
beyond the Paris Air show. It must hold air shows and expos in Dubai,
Shanghai, Hong Kong, Philippines, Singapore, and India at least twice a
year. By following this first strategy it will increase the interest of
prospective and existing buyers in Asia. At the moment Asia is an area of
booming economies, especially Taiwan, China, and India. These
economies have significant buying power.

The second competitive strategy for Boeing is to keep the delivery of the
787 dream liner according to schedule, as the understanding is that the
company has a difficult time keeping and meeting its deadlines. This is
detrimental. The big airline of Asia and the Middle East cannot wait for a
half a dozen 787 dream liners, whereas Airbus is offering a faster delivery
of the A-380. This is another factor eating away at the competitiveness of
the Boeing Corporation. This is a major reason Boeing’s market share in
the global aviation industry has fallen. Also at the same time with the wars
in Afghanistan and Iraq coming to an end. Boeing’s expected sales from
military contracts has been reduced. Boeing is facing a revenue crunch
owing to the fall in the military sales and also the fall in the satellite
program. Given that National Aeronautics and Space
Administration (NASA) and other private companies are currently using
Soyuz Rockets for launching satellite. It was once upon a time that Boeing
had a monopoly in the satellite manufacturing and launching process.
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However, in this case, the Chinese, and Russians have overtaken the
Bowing Corporation, because of lower material and labor costs. Thus as a
result the company has seen a decline in its revenue in the satellite
manufacturing business parse.

The third competitive strategy for Boeing is to jack up the KC_135 Starto
tanker deal once again; this mid-air refueling aircraft was once major cash
cow for the Boeing Company. This plane has military and commercial use
as well. Furthermore, the mid-air refueling concept is still pertinent these
days. As many aircrafts could use a prompt mid-air refueling, once they
touch Bingo Fuel (Fuel level enough to return and land at the nearest
base). This program of the KC-135r must be restarted by the company and
the whole program must be made for both civil as well as military
applications. Another thing is that Boeing must spend more money on
R&D; the company needs a dedicated and committed R&D wing like
Phantom Works at Lockheed Martin. This can develop even more
advanced and fuel efficient designs for the next generation of Aircrafts. In
the case of civil aviation, in the case of military aviation it needs to make
the aircrafts more agile, maneuverable and aerodynamics so that it can
yield better results in a dogfight.

The fourth competitive strategy for Boeing is to engage in major B to B
(Business-to-Business) Marketing. This technique is lacking at Boeing, as
it has only 35% of the military contracts as they are made public by the
Department of Defense and the Pentagon. The Company needs to hire
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some, PR, and marketing gurus to ensure that the company gets some
good feedbacks and market share. This may cost the company some big
bucks, but spending some major bucks is necessary. Therefore, the
marketing, and advertising factor cannot be avoided by the company.
These are the main factors that influence Boeing competiveness. If these three
factors are acted upon the Boeing Company can become more lucrative and competitive.
Furthermore, Boeing needs to cut down on raw material costs. This may be possible by
engaging in medium term forwards and future contracts with the supplier. Another thing
the company can do is to keep wages high oft eh assembly line employees. Also the
employee whose productivity is improving on a monthly basis must be given an incentive
to work harder, by offering bonuses, or a promotion. If changes are made on a good faith
basis and changes are put in place, in a series of events with respect to each other only
then can the company expect any positive changes. Otherwise the Boeing Company will
keep on losing out to Airbus for the near and medium term.
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References:
University of Pennsylvania Wharton School. (2008). Strategies in Oligopoly
Markets. Retrieved from
http://bpp.wharton.upenn.edu/mawhite/MGEC621/Session%20Note%2003%20%20Oligopoly%20Strategies%20I.pdf