In making investment decisions, managers of the company have to make some considerations regarding whether to exclusively specialize in a specific market structure or to spread the investments across several market structures (Bazin, Hill & Urch, 2010). However, spreading the investments across different market structures is beneficial in many ways like the holdings of the company will be diversified. Moreover, it will open up larger pools for investment opportunities. That is it limits the benefits of specialization to one market structure.
The specialist managers will have greater access to the sectors with most promising marketing ventures because the value of the market will be assessed more accurately. Additionally, competitive markets from other companies will influence the choice of specialization in the company since it is relatively standing among other market competitors. Consequently, this will affect the startup decisions to accept the investments in the market structures. Therefore, firms normally change their specialization decisions while responding to the competitors and the market structures.
Theoretically, any person can practice specialization in managing the market situation (Hill & Jones, 2007). However, in the global situation, all market structures are not static. That is the market situation always change due to over-supply and under-supply of goods and services. Similarly, it can also change as a result of the imposition of government laws and regulations, constraints on production, application of trade tariffs, excess supply of raw materials and transport constraints.
In conclusion, the managers should not practice specialization while learning how to manage the specific type of market structure because different market structures normally change over time. Therefore, the managers should adapt to the market changes, and the managers have to develop the required skills or tools to mitigate all kinds of any situation. On the other hand, the recruiters of different firms should look for the multi-skills among the individuals to manage all types of marketing situations.
References
Bazin, D., Hill, R., & Urch, L. (2010). Market Structure and Equilibrium. Springer Science & Business Media.
Hill, C., & Jones, G. (2007). Strategic Management: An Integrated Approach (8th ed.). Lancaster, England United Kingdom: Cengage Learning.
