The benefits of market transparency are often discussed and widely recognized. Transparency helps reduce uncertainty and price fluctuations because all market participants can base decisions of value on the same data. If demand and supply are known, a fair market price for sellers and buyers can be determined, and no one will be disadvantaged. Sellers gain the largest possible reach by offering their assets to the broad market and thus reaching all potential buyers. For the buyers, all offers are known, and they can choose the best one from among many.
A transparent market environment also allows for cost-effective comparisons of one's own company's economic performance to the industry average, as well as the analysis of structural changes in demand patterns or overall market growth trends.
In practice, we often see a lack of market transparency, which indicates a common issue in the commercial aftermarket. Market participants' protective behavior often limits their given network and strengthens the lack of transparency, which can result in financial and strategic problems. If you want to learn more about how a lack of transparency affects the aero-engine business, check out our white paper "Transparency - The missing link for success in the engine business"