A drug cartel is a criminal organization composed of independent drug lords who collude with each other in order to improve their profits and dominate the illegal drug trade. Drug cartels form with the purpose of controlling the supply of the illegal drug trade and maintaining prices at a high level. The formations of drug cartels are common in Latin American countries. Rivalries between multiple drug cartels causes them to wage turf wars against each other.

The basic structure of a drug cartel is as follows:

• Falcons (Spanish: Halcones): Considered as the "eyes and ears" of the streets, the "falcons" are the lowest rank in any drug cartel. They are scouts, who are responsible for conducting reconnaissance, such as reporting the activities of the police, the military and rival groups.
• Hitmen (Spanish: Sicarios): The armed group within the drug cartel, responsible for carrying out assassinations, kidnappings, thefts and extortions, operating protection rackets, as well as defending their plaza (turf) from rival groups and the military.
• Lieutenants (Spanish: Tenientes): The second highest position in the drug cartel organization, responsible for supervising the hitmen and falcons within their own territory. They are allowed to carry out low-profile murders without permission from their bosses.
• Drug lords (Spanish: Capos): The highest position in any drug cartel, responsible for supervising the entire drug industry, appointing territorial leaders, making alliances, in addition to planning high-profile murders.

There are other operating groups within the drug cartels. For example, the drug producers and suppliers, although not considered in the basic structure, are critical operators of any drug cartel, along with the smugglers, distributors, sales representatives, accountants and money launderers. Furthermore, the arms suppliers operate in a completely different circle; they are technically not considered part of the cartel's logistics.