Muchill Flashcards
Market
Is a link between buyers and sellers are in contact in order to establish price
Physical and non physical in a market
Physical- face to face, exist because of personalisation feel and touch
Non physical-over phone, have grown rapidly.
Advantages and disadvantage of physical
Ad- feel,touch,authentic,deals
Dis-expensive,hard to access,bad service,may be far away, out of stock, not your size.
Advantages and disadvantages non-physical
Ad- deals,easy to access, see your size and stock levels.
Dis- scams,no feel or touch,hard to get service.
Competition
Can be described as rivalry amongst to gain more market share
Market share
Is the percentage of the total sale in a industry generated by a paricular company
Market price
Price range that consumers are prepared to buy within
Barriers to entry
Cost,regulations,loyalty,technology
Monopoly
One business that dominates the whole market
Dominant monopoly
Has a market share of 25-40 percent
Economies of scale
The cost per unit of production decreases as a volume of product increases
Two types of costs
Fixed costs do not vary with the level of output Variable cost that change in proportion to the level of goods or services a business produces
Bulk purchasing
The company can buy products in large quantities at a discount because unit per a product is cheaper
Oligopoly
Exist where a market is dominant by a few firms.
Collusion
Takes place when a rival companies cooperate for their mutual benefit,two or more companies act together to influence production.
Monopolistic
A market structure with many competing firms each of whom supplies a slightly differentiated products
Market growth
Is the percentage change in the size of the market ,measured over a specific period
Market size
Is expressed at the collective value of goods,services that buyer’s purchase
Strategies to increase market
Mark up ,monopoly and price
Mark up
Difference between price of a product and the cost to produce
Market power
The ability of a firm to influence or control the terms and conditions on which goods are brought and sold
Market dominance
A measure of market share compared to competitors
Market power
Is soft such as influence.
Organic growth
Discount,deal=inside the business
External growth
Merge,take over=outside the business
Merger
This is where two companies join together to form a new larger business
Acquisition/take over
Tbh ibis where control of another company is achieved by buying a majority of its share
Cma (competition and market authority
Protects people from unfair trading practises
Demand
The amount of a goods/services that customers are willing and able to buy at a given price
Supply
The amount of a goods/services that sellers are willing and able to sell at any given price
Equilibrium price
Sutuation in a market where demand is equal to supply and demand both parties are happy
Complements
Products that can be used in conjunction with each other
Substitutes
Alternatives goods that can be used for the same purpose
Subsides
Government giving money to other business in need
Price elasticity
Demand shows how responsive demand is to a change in price
Elastics demand
Quantity demands is sensitive to a change in price
Inelastic demand
Quantity demand is insensitive to a change in price
Globalisation
Is a process by which counties and economies have become more interconnected or the world coming together to trade in each others market
Ad and did of globalisation
Ad-larger market,meeting different customers needs,cheaper production cost. Dis-promotion,competition,cultural barriers,economic dependency
Factors have facilitated globalisation
Internet,e-commerce,communication,the rise of multinational.
Multinational
A business that has activities and operations in more than one country
Ledc and medc
Low economy developed countries
More economy developed countries
Challenges of globalisation
Increase competition,cost of expansion,communication,understanding different cultural needs.
Why countries trade internationally
For variety,grow,reduce costs,avoid conflict.
Quota and trade deficit
Quota-limit on impact to a country
Trade deficit-more import than export
Tariffs
Tax on goods and services imported into the country
