Differentiating Between Market Structures for the Toyota Motor Essay

Differentiating Between Market Structures for the Toyota Motor Corporation - Essay Example According to the research findings, it can, therefore, be said that market structures refer to the kind of market organization or plan that exists in a certain economy with reference to the supply of products, customers’ behavior and strength and distribution of suppliers into the market. For any organization to prosper in its business processes there must be a properly defined and established market structure to assist in conducting a significant sale of products. Determining the nature and structure of the market in which a company intends to venture prepares the company in making critical decision and systems to encounter potential competition in the targeted market. Prior information of market structure that rules in a particular market setup prepares business organization on how best to face the existing challenges in the particular market. Some of the most common market structures operating in the contemporary economic standing include perfect competition, monopoly, olig opoly, and duopoly. A decision on the kind of market structure to venture into depends on the products and customers targeted by a given business organization. The Toyota Motor Corporation is an example of an organization that has emerged successful in the global market due to the realistic choice of a market structure. The Toyota Motor Corporation has adopted strategies to emerge successful in a perfectly competitive market structure that characterizes the global automobile industry. To survive in this market, Toyota has been successful in identifying and analyzing the nature of the market, the responsiveness of its customers and the ingenuity of its competitors. In this respect, Toyota has focused its technology and production processes towards filling the perceived loopholes that exist in the global motor market. Toyota operates in a market structure where there are many buyers and sellers interacting in a free market without hindrance to enter or exit with rational prices. This means that the market for products offered by Toyota Motor Corporation is highly competitive and requires the adoption of viable competitive strategies to succeed. Toyota Motor Corporation ventured into the perfectly competitive market not out of pleasure but due to the existence of stiff competition that characterizes the global motor vehicle industry. Even though Toyota Motor Corporation enjoys the status of being classified among top five global motor companies, it faces stiff competition from Ford Motor Corporation, KIA, Honda, Nissan, and Mercedes Benz, among other globally renowned motor producing companies. Operating in a perfectly competitive structure requires Toyota to adopt mass production as well as highly innovative and creative strategies to ensure a strong competitive advantage in the motor vehicle industry. In addition, Toyota Motor Corporation found it easier to settle on the perfect competition marketing structure due to the efficiency and price sanity ensured by t he model.