Marvel Entertainment: Market Structure, Competitors, and Opportunities

This document explores the market structure of Marvel Entertainment, its competitors, and the opportunities it has in the industry. It also discusses the products offered by Marvel, government regulation, and the impact of new companies entering the market.

Running head: ECONOMICS
Economics
Name of the university
Name of the student
Author note

ECONOMICS
Marvel Entertainment
Introduction
Marvel Entertainment is an American entertainment company which has been
founded in the year 1998 in New York (Curtis, 2015). Over the years it has known to enter
into various partnerships and negotiations with different other companies.
Market structure
Marvel Entertainment is known to operate in oligopolistic market stricture where
there are few rivals of Marvel in the industry. In this type of market structure, there are
presence small number of firms none of which can keep the others from having significant
influence. The few firms therefore known to dominate the industry (Curtis, 2015). Marvel
entertainment is mostly famous in western countries.
Government regulation
The Registration Acts or the Superhuman Registration Acts are the fictional
legislative bills is used in various comic books as well as in superhero films. The idea that the
superpower individuals might need might need to be registered by the government was first
raised by the marvel entertainment.
Issues and opportunities around the world
One of the biggest opportunities of Marvel is that it is already a well established
brands with millions of followers already making it a successful brand. It can put holograms
so that others will not be able to copy. It also has huge potential to tap more franchises. It can
also expand lines of Netflix shows, sales promotions for movies for generating interest in
comics.
Products

ECONOMICS
The products of Marvel Entertainment comprise of animations, books, televisions,
comics and video games. The divisions of Marvel Entertainment consist of Marvel New
Media, Marvel Games and Marvel Television. The company is also known to operate in four
segments which comprise of licensing, toys, publishing and film production. The parent
company of Marvel is The Walt Disney Company.
Competitors
The main competitors of Marvel are The Topps Company Inc, DC Entertainment and
Image Comics, Inc.
Price elasticity of demand
The products sold by the Marvel Entertainment are somewhat inelastic in nature.
Therefore, the quantity demanded will remain the same despite the increase in the price of the
marvel products.
Impact of entry of new companies
Firms which oligopolistic or monopolistic in nature are known to maintain their
position of dominance in the market since it is too costly or difficult for the rivals to enter
into the market. Therefore, there is a huge barrier to entry in this particular industry (Bade &
Parkin, 2015). Saturation of the superhero market can of main concern. The threat of
substitutes is known to be much higher in nature in the entertainment industry when
compared to the other industry. The rival companies can come up with new characters which
lead to increase the market share of these competing industry
Concept and measurement of cost
An oligopoly market firm known to face a kink shaped demand curve. Since, marvel
entertainment follows oligopolistic market structure, it is rigid in changing prices. When the

ECONOMICS
marvel entertainment will be raising its price and if the others does not match the increase,
then revenue will decline despite the increase in price. in case of a stable economy, the
oligopolies are known to change price much frequently than the other market models
(McKenzie & Lee, 2016). Even if they change their price, the firms will be moving in the
same direction and by the same magnitude in the change in price.
Scarcity, choice, opportunity cost affect decision making
The opportunity cost is known to affect the financial decision making in many ways.
The opportunity cost is known to extend beyond the monetary cost of decision. it is known to
also include all real cost of making choices over the other. Scarcity is another basic economic
problem where there is a gap between the limited availability of resources along with the
limitless wants (Bade & Parkin, 2015). This particular situation allows people for making
decisions about allocating resources efficiently for satisfying basic needs along with the
additional wants. The choice scarcity and the opportunity cost are also known to affect the
business decision in many ways.
Conclusion
Marvel Entertainment is known to operate in oligopolistic market stricture where
there are few rivals of Marvel in the industry. In this type of market structure, there are
presence small number of firms none of which can keep the others from having significant
influence. It also has huge potential to tap more franchises. It can also expand lines of Netflix
shows, sales promotions for movies for generating interest in comics.

ECONOMICS
Reference list
Bade, R., & Parkin, M. (2015). Foundations of microeconomics. Pearson.
Cowell, F. (2018). Microeconomics: principles and analysis. Oxford University Press.
Curtis, B. (2015). Kimble v. Marvel Entertainment LLC 135 S. Ct. 2401 (2015). Intell. Prop.
L. Bull., 20, 47.
Fine, B. (2016). Microeconomics. University of Chicago Press Economics Books.
Havens, C. E. (2016). Saving Patent Law from Competition Policy and Economic Theories:
Kimble v. Marvel Entertainment, LLC. Berkeley Tech. LJ, 31, 371.
Kane, K. (2018). Hyper-Normative Heroes, Othered Villains: Differential Disability
Narratives in Marvel Movies and Shows.
McKenzie, R. B., & Lee, D. R. (2016). Microeconomics for MBAs: The economic way of
thinking for managers. Cambridge University Press.
Menard, D. (2015). Entertainment assembled: The Marvel Cinematic Universe, a case study
in transmedia.