MGMA01H3 Lecture Notes - Lecture 3: Breakcore, Sales Promotion, Sodium Bicarbonate
Document Summary
Monopoly: only one firm provides the product/ service. Oligopoly: a small number of firms produce either identical products and sell at comparable price or differentiated products, and charge a premium. Monopolistic competition: many competitors produce differentiated products, go after different segments, and charge a premium. Pure competition: many competitors offer the same product, no basis of differentiation, charge same price. We don"t like pure competition: you can"t different yourself if you offer the same product, e. g. Bargaining power of supplier: if there"s only one supplier, there is a lot of supplier power. Power of buyers: when companies are larger they have more buying power and can bargain with suppliers. The more substitutes for a product there are, the more competition there is. Entrance into business: how easy is it to enter: e. g. it"s hard to get into the car industry. The traditional way of looking at competition. See the competitor as the enemy: can be compared to war.
