• Created by: amyreed
  • Created on: 08-06-15 15:40
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  • Marketing and Competitive Markets
    • Buyers and sellers meeting to exchange goods and services
      • A market situation in which there are a large number of buyers (demand) and sellers (supply).
      • Competitive market
    • Implications for busineses
      • Can thrive buy supplying goods and services efficiently and make profits
      • Without competitive markets it will most likely fail. Especially if it doesn't meet demand and supply
    • Monopoly Power
      • When a firm has more than 25% of the market share.
      • Achieving monopoly power
        • Merger and Takeover
        • Statutory monopoly
        • Internal expansion
        • Branding
        • Cost barriers
      • Consequence
        • Good
          • Research and development
          • International competitiveness
          • Exploitation of economies of scale
        • Bad
          • High prices
          • Poor quality
    • Monopoly
      • Only one firm selling in a market.
    • Reasons for Government Promotion in competition
      • Firms can fail to keep up with tastes or changes in technology
      • Firms may exploit workers with low pay
      • Increase prices for consumers
      • Predatory pricing
        • Lowering prices so that small businesses cant compete
      • Land grabbing
        • Buying land that is a possible site for rivals to open supermarkets


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