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FACTORS INFLUENCING BUSINESS COMPETITIVENESS (NUMBER OF COMPETITORS…
FACTORS INFLUENCING BUSINESS COMPETITIVENESS
EASE OF ENTRY
Ability to establish a business within a particular industry
Determined by market concentration
Entry difficult in oligopolies
Entry easy in perfect and monopolistic competition
LOCAL AND FOREIGN COMPETITION
Local competitors produce or sell a good or service in the same market
Labour costs
Transport costs
The economy
Cost of stock/materials
Foreign competitors are businesses located overseas and sell in Aus to compete with local markets
MARKETING STRATEGIES
Type and extent of marketing depends on:
Size of market
Size of business
Number of competitors
Nature of product
NUMBER OF COMPETITORS
MONOPOLY
One firm in industry
Customer does not influence price
e.g. Australia Post
OLIGOPOLY
A few firms in industry
Mass advertising restricts compeition
e.g. Banks, Oil Companies, Car Manufacturers
MONOPOLISTIC COMPETITION
Large number of firms in industry
e.g. Clothing Manufacturers, Local Retailers
PERFECT COMPETITION
Larger number of small firms in industry
Price competition to achieve market share
e.g. Fruit and Veg Growers