The definition of market - Essay Example

In simple words, market is a place where buyers and sellers interact to trade a good or service through an exchange process. Indeed, market is a broad term which should be defined because it provides a framework that would help identifying the extent of competition. Nevertheless, market definition is important because it enables the researchers / decision – makers in estimating the probability of certain risk factors followed by evaluation of competition restraints for a business entity in the market.

It is justified to argue that the better we define the market, the easier it becomes in calculating risks involved and scope of competitive forces. As far as the success of National football League (NFL) is concerned, it should be mentioned that “Tailgating, Sacks and Salary Caps” is the book written by Mark Yost in which he explained how businesses could innovate their operations and adopt new strategies for growth and expansion. Nevertheless, NFL also defined its market to analyse existing competition after which it made entrepreneurial innovations such as personal seat licenses and stadium naming rights that helped the sporting association in maximizing its financial revenues.

Consequently, the NFL emerged as a market leader (due to its phenomenal growth) in comparison to other sporting organizations such as Major League Baseball and Green Bay Packers. In short, NFL today exists in a marketplace where it has been in a dominant position due to innovation centered entrepreneurial approach, which has benefited its reducing the scope of competition in sporting events industry.