← Back to Glossary

market structure

The number of firms that produce a certain type of product. For example, there are two major producers of aircrafts (Boeing and Airbus) and a few smaller ones (like Bombardier). But there are hundreds of thousands of independent convenience stores in America. The former is an example of an highly concentrated market structure (a.k.a. an oligopoly) – which typically has a very high barrier to entry and a strong ability to control prices. The latter is a much more competitive market where the companies have very little pricing power (i.e. one store cannot sell a chocolate bar for $2 when everyone else sells it for $1).

Grow your business
with Finimize

Our Partners