is competition good
DESCRIPTION
Brief info about competition in business field.TRANSCRIPT
Is competition good
for business?
ALĪNA SIROVA ∙ RŪTA VIGULE
Competition
Positive aspects
Negative aspects
Conclusions
Competition
The act of competing, as for
profit or a prize
Competition (economics)
Rivalry between several businesses striving
for the same customer or market in which
every seller tries to get what other sellers
are seeking at the same time
Direct competition Market situation where two
or more firms offer essentially
the same good or service
Indirect competition
Competition among the suppliers
of different types of products that
satisfy the same needs.
Perfect competition
1) All firms sell an identical product
2) All firms are price takers
3) All firms have a small market share
4) Buyers have complete information about the product
being sold and the prices charged
5) Freedom of entry and exit
Real life
Real examples
POSITIVE ASPECTS
Competition leads to
innovation and
improvement
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Competition forces to
improve customer
service
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Competition makes
you focus on your
target audience
Competition makes you evaluate
your strengths and weaknesses
Learning from your
competitors
NEGATIVE ASPECTS
Competition draws away
your potential and existing
customers
Anchoring
Use of irrelevant information as a
reference for evaluating or estimating
some unknown value or information
Monopoly
A situation in which a single company
or group owns all or nearly all of the
market for a given type of product or
service
Oligopoly
A situation in which a particular
market is controlled by a
small group of firms
Cartel & Collusion
Cartel - an agreement of cooperation formed
between competitors in a specific industry
Collusion - secretive agreement between two
or more organizations, formed with the aim of
gaining illegal mutual benefits
Conclusions
Competition is good for business
Competition is bad for business
"Competition brings out the
best in products
and the worst in people."
- David Sarnoff (1891-1971)
References “direct competition.” businessdictionary.com http://www.businessdictionary.com/definition/direct-competition.html (Accessed: 29 October 2014)
“indirect competition.” businessdictionary.com http://www.businessdictionary.com/definition/indirect-competition.html (Accessed: 29 October 2014)
Differencebetween.com Difference Between Cartel and Collusion [Online] Available form: http://www.differencebetween.com/difference-between-cartel-and-vs-collusion/ (Accessed: 29 October 2014)
“monopoly.” investopedia.com http://www.investopedia.com/terms/m/monopoly.asp (Accessed: 29 October 2014)
“oligopoly.” investopedia.com http://www.investopedia.com/terms/o/oligopoly.asp (Accessed: 29 October 2014)
“perfect competition.” investopedia.com http://www.investopedia.com/terms/p/perfectcompetition.asp (Accessed: 29 October 2014)
“competition.” thefreedictionary.com http://www.thefreedictionary.com/competition (Accessed: 29 October 2014)
Worldofquotes.com David Sarnoff Quotes [Online] http://www.worldofquotes.com/author/David+Sarnoff/1/index.html (Accessed: 29 October 2014)