Competitive Advantage Flashcards
What is the competitive environment
•The competitive environment is the degree of competition in the market and the buying and selling power of customers and suppliers within that market
What is market structure
Market structure is the number of firms within an industry and the way in which those businesses behave e.g. differentiating products
Monopoly occurs when
•Monopoly occurs when one firm dominates the market
Oligopoly occurs when
Oligopoly occurs when a few firms dominate the market
Monopolistic completion occurs when
Monopolistic competition occurs when there are many firms in the market but there is some form of product differentiation
Describe perfect competition
Many firms
Price taker
No barrier to entry
Same products
Describe monopolistic competition
Many firms
No entry barriers
Differentiated products
Some influence over price
Describe oligopoly competition
A few firms
Entry barriers
Differentiated products
Describe monopoly competition
1 firm
Barriers to entry
Unique product
Price maker
What is a competitive advantage
A competitive advantage is a feature of a business that allows it to perform more successfully than others in the market
Business will employ many tactics and strategies to compete , these include:
- New product development
- Changing/improving existing products
- Promotions
- Changing prices
What is market size
Market size is the total sales value or sales volume in a given market
Market size calculation
•Number of units sold x price
