3.7.7 - Competitive Market Flashcards
What is Entry Threat
How likely it is that a new competitor will enter the market
Barrier to entry
factors that make it difficult for a business to sell products in a market for the first time
Substitute
an alternative product that offers purchasers similar or the same features and benefits
Supplier Power
how much negotiating power suppliers has over a customer
Buyer Power
How much bargaining power the customer has
Rivalry
The intensity of competition between businesses in an industry
Competitive structure
the number and strength of competing firms in an industry and the ease of entry for new competition
Monopoly
when one firm dominates the market e.g. Google (only as a search engine)
Duopoly
When two firms dominate the market e.g. Apple and Samsung
Oligopoly
A small number of firms are in the industry e.g. Supermarkets
Monopolistic Competition
Many firms competing in the industry selling differentiated products e.g. fast food restaurants
Perfect competition
This is when many firms in the industry with no influence on market price e.g gas sales with price cap
