Revisiting competitive strategy is one way to respond to a more competitive market. For example, in marketing, businesses identify what needs to be adapted to be relevant to today's competition and customer needs, whether related to the product,
Market Structure
Why are some markets becoming more competitive?
Some markets become competitive for several reasons. Globalization is the first reason. It makes the competition map wider because it involves foreign players. For example, it encourages foreign goods to easily enter the domestic market, increasing
Competitive Market: Characteristics and Examples
What it's: A competitive market refers to a market characterized by intense competition in which no player has a dominant power. It is identified as a perfectly competitive market with many buyers and sellers. And they individually cannot
Monopoly: Meaning, Examples, Characteristics, Causes, Advantages, Disadvantages
What's it: a monopoly is a market structure with only one seller and serving many buyers. The seller is called a monopolist.Unlike in perfectly competitive markets, the monopolist has absolute control over market supply and prices.Since there
Social Cost in Economics: Meaning, Components, Formulas, and Effects
What's it: Social cost is private cost plus external cost. Private cost is borne by individuals directly involved in economic transactions or activities. Meanwhile, the external cost is borne by third parties not directly involved in the
Ease of Entry: Meaning, Impacts, Determinants
What's it: Easy of entry refers to the level of difficulty a company has to enter into an industry or market. It is important because it affects the intensity of competition and profitability in the market. When new entrants enter, they bring in
Free Rider: Meaning, Examples, Impacts and Possible Solutions
What's it: Free rider is someone who gets benefit from a product at no cost. It appears in the public good because people are free to benefit from the goods without paying. When you consume it, it does not reduce the benefits received by others.
First-Degree Price Discrimination: Examples, Prerequisites, Problems
What's it: First-degree price discrimination is a type of price discrimination in which producers charge each customer the highest price they are willing and able to pay. We also call this perfect price discrimination.Types of price
Horizontal Price Fixing: Meaning, Examples, Impacts
What's it: Horizontal price-fixing is an agreement between businesses, either explicitly or implicitly, to set the selling price for a product or service. In this case, an agreement occurs between companies under the same value chain level, for
Imperfect Competition: Characteristics, Types
What's it: Imperfect competition is a market structure in which sellers or buyers have market power over prices, which prevents the market from operating under perfect competition. Because they have market power, market participants are often in
Duopoly: Examples, Characteristics, Types, Implications
What's it: Duopoly is a market structure in which only two sellers (producers). This is the basic form of oligopoly competition. The two players serve multiple buyers and sell competing goods and services.In this market, players have a high
Market Power: Determining Factors, Effects, How to Measure
What's it: Market power is the firm's ability to influence its products' prices in the market. Market power enables firms to charge a higher price than the equilibrium price in a competitive market.We call companies having market power as