The cost of switching between traders is small and the process quick, therefore buyers that are price sensitive are very likely to switch to those traders who can supply the same goods for a lower price. But even though there are many traders in the industry, only a handful have distinguished themselves because of their large global sourcing and manufacturing networks, such companies can even charge a premium for their services as they deliver extremely high levels of value and quality. Thus although buyers in this industry are price sensitive, there is a constant struggle between value for money (quality, timely delivery, customer service) and low cost. The trading industry lacks any significant barriers to entry t... ... middle of paper ... ... network allowing them to organize their functions as if they were different steps in the manufacturing process. Typically they will only use 30-70% of the supplier’s capacity thus allowing for flexibility and access to new suppliers.
All sellers tend to supply the same identical product. When four conditions are satisfied, a market is said to operate under perfect competition. We need to be able to define and explain the four conditions which are numerous small firms and customers, homogeneity of product, freedom of entry and exit, and perfect information. First, numerous small firms and customers is defined as competitive markets contain so many buyers and sellers that each one constitutes a negligible portion of the whole- so small, in fact, that each player’s decisions have no effect on price (Baumol and Blinder, 200). In other words, although there are many buyers in the market, they cannot control the prices because prices are fixed through the forces of supply and demand.
India is one of the fastest growing retail markets in the world, with 1.2 billion people. Recognizing the important role, that, retail sector play in the national economy, the Central and State Governments have taken active steps to promote and foster their growth. The government policy is favorable to FDI in the retailing sector in phased manner so as to avoid opposition to such entry by domestic retailers. These measures have been particularly effective; but many of the problems/Controversy over Indian retail reforms still continues to afflict the retail sectors. Through in the 1990s, India introduced widespread free market reforms, including some related to retails, between 2000 to 2010, consumers in selected Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.
Retail formats in India Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. Mom-and-pop stores: they are family business catering to small sections; they are individually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offers quality products and services. Convenience stores: these are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: the biggest form of retail market in India, malls offers customers a mix of all types of products and services including entertainment and food under a single
Globalization is the new notion that has come to rule the world since the nineties of the last century with the end of the cold war. The frontlines of the state with increased reliance on the market economy and renewed belief in the private capital and assets, a process of structural alteration encouraged by the studies and influences of the World Bank and other International organisations have started in many of countries. Also Globalisation has brought in new avenues to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard. Countries around the world have closer over past few decades due to growing integration between economies.
High intensity of rivalry can be expected among the numerous competitors of this industry. Most of the products have been around for a while now, so slow industry growth can occur with a lack of innovation. Augmented capacity can also become disruptive to the industry as economies of scale require that capacity must be added in large increments. Unless something is dramatically different, all of the weight management companies are competing for the same market
All firms in this market work with the same price, which is why a change in price by a firm can cause a drastic change in their profits. Elasticity is the measure of how consumer demand will respond to a price change. Therefore, a perfectly competitive market is highly elastic, because any change in the price will affect the consumer demand for the good or service. Firms will avoid differing their price to other suppliers, because by doing so, costumers can easily take their business to any other firm, selling the same good or service. This type of situation creates a horizontal demand curve in a perfectly competitive market; the price will stay constant therefore the demand will also maintain consistency.
So, furthermore, it is quite easy to enter and exit the market however, brand loyalty can influence how well your event planning does in the industry. Thus, consumers tend to look at the level of knowledge, expertise, and experience many event planning businesses entails in order to differentiate one from other competitors. Therefore, you tend to see that many consumers generally base their decisions and choices on if they have utilized the services previously, does the company have a great reputation, is the company known for exceptional services and events, and does other consumers speak highly about the business. All these factors contribute to how well a company excels over its competitors in the market. Moreover, these attributes and qualities brings forth and bridge brand loyalty among its consumers and potential consumers looking for quality services and companies within the event planning business and causes many event planning businesses to stand out and reign supreme over others.
This is how Ross Stores has maintained successful and has expanded their many stores throughout the states. Ross stores maintains successful by constantly targeting all potential customers who are savvy shopper and earn moderate salaries. This is the reason Ross Stores works hard on getting their commercials seen by adding various styles and products they have. Ross does not concentrate on only one group of people but they always have something for every group of people such as products for men, women, kids, and pets. With this many products to offer their customers, Ross is always looking to grow and open more stores near their
They have the ability to control prices and quantities of their goods, forcing other companies in that specific industry to adjust to the oligopoly’s changes. The oligopoly has the power to do that because there are few sellers in the industry and each seller reacts to that of the other ones. This often leads to price leadership. This price leadership has a dramatic impact on consumers. Companies compete with the prices of goods and they keep lowering their prices.