AutoEdge is facing a crisis as millions of its automobiles have had to be recalled due to product quality issues. Many elements must be taken into account in order to put in place a proactive response to remedy the situation. As part of the research analysis, I was tasked with helping to rebuild AutoEdge's reputation and reduce and control operating costs. When making a decision about implementing a change within the organization, the market analysis should examine the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry and exit from the market. The article "Review of Market Structure" (nd) defines market structure as the "microeconomic characteristics of different markets" and includes elements such as level of competition, high or low barriers to entry, and scale (Review of Market Structure, n.d.). decision to relocate, AutoEdge must analyze and evaluate the market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition and pure competition. Additionally, it will describe the type of market structure AutoEdge fits into, how this market structure affects the level of competition, elasticity of demand, pricing and position in the industry. Market Structures A monopoly is “a single firm controlling both industry output and price” (Review of Market Structure, n.d.). It presents a high entry and exit barrier and a product perceived as heterogeneous. The company is the sole supplier of the product, substitutes for the product are limited, and high barriers are used to deter competitors and lead to a single company being able... middle of paper ......ls, to increase , lower or stabilize prices, or to implement new strategies reactively (wait to see what competitors do then act) or proactively (go first). ConclusionIn conclusion, market structure is important because it leads to strategic decision making. . Having a working knowledge of market structure impacts decision making because organizations will learn the characteristics of their competitors and how the market will respond to changes. This report discusses the four different types of market structures: monopoly, oligopoly, monopolistic competition and pure competition. It details what each market structure is and gives everyday examples. Additionally, it will describe the type of market structure AutoEdge fits into, how this market structure affects the level of competition, elasticity of demand, pricing and position in the industry..