447371
Description
Mind Map by charcrawford, updated more than 1 year ago
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Created by charcrawford
about 11 years ago
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46. Impact of Competitive and Market Structure
- Competitiveness measures the firms ability to compete i.e.
compares its consumer offer to the offers made by its rivals
- What is a Competitive Market?
- Intense rivalry between producers
of similar goods/ products
- Increased number of firms =
Increased competition
- Firms try to create a USP or
use predatory pricing
- Prices and profit
margins are squeezed
- Intense rivalry between producers
of similar goods/ products
- The Degree of Competition within a Market
- One Dominant business
- 'Monopoly'
- Single supplier and
no competition
- Bad for Customers: restrict
choice, drive prices upwards.
- Competition Commission - ' Monopoly is
a firm that has a market share of 25%+'
- Markets dominated by a large
business, firms do not need to
spend heavily on promotion
(consumers are captive)
- 'Monopoly'
- One Dominant business
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