Competition, The Market, Market Size + Growth Flashcards
Market
A place where buyers and sellers meet/in contact in order to establish price.
Competition
Rivalry amongst sellers in a market.
Physical Market
They continue to exist because of the personalisation they offer. Some businesses offer products in both types of market (non-physical).
Non-Physical Market
They have grown rapidly because of the convenience that they offer. Some businesses offer products in both types of markets (Physical).
Market Price
Although there is no such thing as ‘the market price’, in the sense of a single price for a product, there is a price range in a market at which consumers are prepared to pay.
Mark Up
The difference between the cost of producing an item and the price at which it is sold.
Competitive Market
A market in which there are a large number of sellers. Competition is mainly based on price.
Monopoly
A market dominated by one seller. In reality, a business has over 25% of the industry’s sales.
Oligopoly
Exists where a market is dominated by a few firms. The mobile phone market is an example. Mostly compete on non-price differences.
Monopolistic Competition
A market structure with many competing firms each of whom supplies a slightly different product.
Market Size
Expressed as the collective value of the goods/services that buyers purchase.
Market Growth
Percentage growth in the size of the market, measured over a specific period.
Market Share
The percentage of total sales (by value) that a business has in a specified market.
Barriers To Entry
The factors that could prevent a firm from entering and competing in a market.
Barriers To Exit
The factors that could prevent a firm from leaving a market, even if they wanted to.
