Definitions - Marketing & Competitiveness Flashcards
Define Degree of Competition?
The number and size of businesses operating in a given market
Define Monopoly?
A market share where there is only one supplier with 100% market share who could therefore exploit consumers by charging high prices (In practice the competition commission might check the behaviour of businesses with over 25% market share as they can behave like monopolists)
Define Oligophy?
A market with a few large suppliers
Each will have a high market share
Define Monopolistic competition?
A market with many suppliers all selling slightly differentiated products meaning they will have some ability to set prices based upon unique feature of their products
Define Perfect Competition?
A market where there are a large number of suppliers all selling homogeneous (indistinguishable) products
These firms will be price takers, accepting the market price
Define Market Concentration or Concentration Ratio?
The proportion of total market sales accounted for by a particular number of firms
The higher the % the more market power they have
Define Market Conditions?
The characteristics of a market in which a firm operates such as degree of competition, needs of customers, market growth rate
Define Dominant Business?
A business that has the largest market share in a market
Define Barriers To Entry?
Obstacles that make it difficult for a new firm to enter into a market including brand loyalty to existing suppliers, high start up costs etc.
Define Competitiveness?
The degree to which one firm is successful at selling its products compared to rivals in the market
Define Competitive Advantage?
A feature of business that allows it to perform more successfully than others in the market - USP, strong brand, customer service, low costs
Define Competitors Actions?
The methods used by a rival organisation to effectively compete in a market
