Competition effects

• what is competition?

  rivalry among sellers, where sellers try to increase sales, profit and market share
• what is direct competition

  competition between rivals that sell similar goods
• what is indirect competition?

  competition between rivals selling substitute products (KFC and subway)
• what is competitiveness?

  the ability of a business to outperform rivals and achieve sustainable competitive advantage
• what is a competitive advantage?

  features of a business or its products that enables it to generate more sales or to be more profitable then its rival
• what factors to consider when assessing competition?

  • intensity of rivalry (number of competition, their market share and extent of product differentiation)
  • threat of new entrants (how easy it is to enter market)
  • threat of substitutes (other products)
  • power of customers
  • power of suppliers
• how can a business survive in a competitive market?

  • change marketing mix
  • control costs
• what is porters five forces?

  • threat of new entrants
  • threat of substitutes
  • intensity of rivalry
  • power of customers
  • power of suppliers