1. Marketing & Competitiveness

2. Market structure Monopoly Oligopoly Monopolistic competition
Perfect competition

3. Monopoly
In theory, a single producer in a market, but in practice a firm with a market share of 25% or more
Potential danger of consumer exploitation
Businesses of more than 25% market share continue due to high barriers to entry:
High start-up capital costs
Patents
Brand loyalty

4. Oligopoly A market dominated by a small number of large businesses
Extremely competitive
Rivalry usually takes the form of non-price competition
Cartel = a group of firms that come together to agree price & output levels in an industry (illegal)

5. Monopolistic competition
Where a large number of firms are competing in a market, each having enough product differentiation to achieve a degree of monopoly power & therefore some control over the price they charge
Development of brand name
Reputation
Set-up costs relatively low

6. Perfect competition
Where there is a large number of sellers & buyers, all of which are too small to influence the price of the product
Sellers produce homogeneous products
All firms are price-takers
Perfect freedom of entry into & exit from the market

7. Porter’s Five Competitive Forces
Threat of entry to the industry by new competitors
Intensity of competitive rivalry
Power of buyers
Power of suppliers
Threat from substitute products or services

8. Porter’s 5 Forces Assess firm’s strategy
Look for clear competitive advantage

9. Advantages of competition
Improve efficiency
Improve cost-effectiveness
Improve the quality of products & services
Reduce waste by attempting to become more efficient

10. Disadvantages of competition
If based on price, product quality might be sacrificed
Huge resources are devoted to competing with other firms
Some businesses will inevitably be forced out of the market, with the human consequences of redundancy & unemployment
Takeovers & mergers  increasing concentration

11. Impact of market conditions on the marketing mix
Monopoly
Oligopoly
Monopolistic competition
Perfect competition

12. Competitiveness
The ability of businesses to sell their products successfully in the market in which they are based

13. Determinants of competitiveness
Investment in new equipment
Staff skills, education & training
Innovation through investment in research & development
Enterprise
Effectiveness of the marketing mix
Incentive schemes for staff
Improvements to operational procedures
Quality procedures
Financial planning & control

14. Methods of improving competitiveness
Marketing
Reducing costs
Improving quality
Staff training