competitive environment
- Created by: Hetal M
- Created on: 24-04-17 16:55
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- competitive environment
- competitiveness - ability of a business to deliver better value to customers than rivals
- competitive advantage
- having an edge over rivals
- can offer better value, quality or services
- competition and market structure depends on...
- the extent of current competition
- possible new entrants in the market
- threatening to existing businesses
- high profits = tempting newcomers = decrease price andprofits
- market power depends on keeping barriers against the rivals
- threatening to existing businesses
- which businesses produce similar/different products
- barriers to market entry
- product differentiation
- increasing customer loyalty = drive away newcomers = hard to get market share
- control access to raw materials and distribution channels
- no access = hard to enter
- retaliation by established products
- e.g. threat of price wars
- discourage newcomers
- product differentiation
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