Many competitive markets have been appeared in Middle East lately, and specially in Kuwait. The One which I will discuss is the Internet competitive market in Kuwait . Internet has been a great demand in all over the world. In 1992, The ministry of communication in Kuwait provided the internet service. Since there was no community attraction toward the internet, the price of the provided service was pretty high. Since this company was the only one produced a certain market's product, they had inflated the price to the absolute highest cost that people would still pay. Because of that, there was an absolute need for competition. Competition lowers the price because of the competition for costumers. Moreover, the provided service by the only company didn't have the quality that worth its price, like the lines were always busy or even if you get connected to the network the connection speed wouldn't be higher than 2400 bps. Companies were rarely thinking of joining this market, because the number of people demanding this service was unstable, and depending just on the high educated class or the university. Over the last 6 years, the demand of the internet has greatly increased, and many competitive companies showed up to satisfy the consumer's demand. Many companies started to break the monopolization of this market, and the price has been dropped incredibly. Thus, the demand of this market started to raise up again. This competition among companies also raises the quality of the products because if a company put little technology and capital into their output, consumers would not buy from them, rather they would buy from the competition. In my own opinion, the companies would receive better advantages if they made a special discount for students.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
... telecommunications market. This competition is great for a community because it brings diversity and variety into an area. In order for customers to be satisfied it is crucial to offer products and services at an affordable price—this is driven by competition.
The main prospective of every business is to understand its competitors, their market share and always try in increasing own market share. They need to work in increasing sales of goods, which is also making strong monopoly market to survive for “CANHOLE” among their competitors.
Competition in economics is rivalry in supplying or acquiring an economic service or good. Sellers compete with other sellers, and buyers with other buyers. In its perfect form, there is competition among many small buyers and sellers, none of whom is too large to affect the market as a whole; in practice, competition is often reduced by a great variety of limitations, including monopolies. The monopoly, a limit on competition, is an example of market failure. Competition among merchants in foreign trade was common in ancient times, and it has been a characteristic of mercantile and industrial expansion since the Middle Ages. By the 19th century, classical economic theorists had come to regard competition, at least within the national state, as a natural outgrowth of the operation of supply and demand within a free market economy. The price of an item was seen as ultimately fixed by the confluence of these two forces. Early capitalist economists argued that supply-and-demand pricing worked better without any regulation or control. Their model of perfect competition was marked by absolute freedom of trade, widespread knowledge of market conditions, easy access of buyers to sellers, and the absence of all action restraining trade by agencies of the state. Under such conditions no single buyer or seller could materially affect the market price of an item. After about 1850, practical limitations to competition became evident as industrial and commercial combinations and trade unions arose to limit it. A major theme in the history of competition has been the monopoly, which represents a business interest so large that it has the ability to control prices in a given industry. Some governments attempted to impose competition through legislation, as the United States did in the Sherman Antitrust Act of 1890, which made many monopolistic practices illegal. Other governments depend on monopolistic organizations to boost their economy like the zaibatsu and keiretsu in Japan.The United States Monopolies in the United States have a long history. They usually are associated with industry and the post-Civil War period, but their history originates in Elizabethan England. By the time the American colonies had become independent, the term “monopoly” was already well established. Yet nothing was written about monopolies in the Constitut...
Secondly, Another group of people argue that the number of newly-opened companies is very high, therefore competition between them prevents the growth of the business. If there are a great number of active businesses, they will fight for the control of the businesses in the city, so the prices will go down for consumers.
Consumers would lose-out from increased competition in the short-run, however in the long-run consumers would ultimately benefit from increased competition. High levels of competition prevent businesses from abusing their market power, such as setting prices above or below what a perfectly competitive market would dictate to be at equilibrium and also encourages businesses to be innovative instead of becoming complacent, relying on consumer’s lack of choices.
- Deregulation of state monopolies has brought more competition among suppliers and a fall in the ...
As we know, there are a lot of business types in the world. Each of the businesses has their own strategies to survive in this competitive business world. Economically, price discrimination is usually regarded as desirable, since it often increases the efficiency of an economy. In contrast, it often arouses strong opposition from a public. Like in this particular case, which is online price discrimination, a majority of consumers think that this kind of discrimination is illegal. Generally, discrimination has a very negative implication in our society, and various forms of it, which those based on age, gender, race and religion, are illegal. However, price discrimination is a pricing strategy that is widespread in the economy and to avoid negative
7-Eleven has emerged as a clear market leader in terms of competition with similar convenience stores because of its highly customer focused orientation and implementation of various information systems adding to its differentiation strategy. Rivalry is further reduced because of the switching costs buyers' face with the presence of customized goods. The organization does not possess high fixed costs and this discourages competitors from manufacturing with price cuts. However, there are still a few competitor that gives an impact to the market. Such as the strong convenience store in US, Wall Mart. In Malaysia, the regular competitor is KkMart Store. In fact, nowadays there are many independent retailer who are trying to compete in the market of convenience store.
A competitive market is one where there are numerous producers that compete with one another in hopes to provide goods and services, we, as consumers, want and need. In other words, not one single producer can dictate the market. Also, like producers, not
“According to Leftwitch, in the market situation of monoploistic competation,there are enough sellers of differentiated on others and their activities have no effect on him’’.”in monopolistic competation “, say Stonier and Hague, “there is competation which is keen, though not perfect, between many firms making very similar products.” Mr. chamberlin is the economist who popularised the concept of monopolistic competation. This market structure is the most realistic market in the
Markets have four different structures which need different "attitudes" from the suppliers in order to enter, compete and effectively gain share in the market. When competing, one can be in a perfect competition, in a monopolistic competition an oligopoly or a monopoly [1]. Each of these structures ensures different situations in regards to competition from a perfect competition where firms compete all being equal in terms of threats and opportunities, in terms of the homogeneity of the products sold, ensuring that every competitor has the same chance to get a share of the market, to the other end of the scale where we have monopolies whereby one company alone dominates the whole market not allowing any other company to enter the market selling the product (or service) at its price.
Global concerns, such as global warming, water shortage and overall sustainability bring alongside a new set of regulations, restrictions and additional budget requirements. Our current state of the economy dictates consumers purchasing power, most of whom opt out for cheaper, generic products, therefore pushing prices down and boosting rivalry.
There is increased competition- This is a consequence of capitalism. Increased competition leads to improvement in terms of quality and efficiency of production. It also leads to low prices of products in the market, as producers want to have a larger share of the consumer market. In a capitalistic perspective, businesses that produce high quality products at a low price enjoy a larger market share.
The four market structures: perfect competition, monopolistic competition, oligopoly, and monopoly entails various characteristics that exemplify the level of competition within the market. These distinct features include having a number of sellers, producing a homogeneous or differentiated goods or services, pricing power, a level of competition, barriers to entering or exit the markets, efficiency, and profits. Due to the high profit and revenue some firms face within the various market structure, barriers to entry are put in place to restrict new competitors from entering. Natural, artificial, and governmental barriers play a vital role in firms ability to stay in a market, be productive, efficient, and competitive. Firms reaction to price changes, the government’s ability to create a price, and the influence of international trade on the market structures, are essential factors that economist evaluate the various market structures. Overall, the competition between market structures may not always result in the same outcome, due to the behavior and interaction between consumer’s and buyers, but in the end, both the buyer’s and seller’s are needs are