Competition Essays

Competition

Competitive forces are the pressures put on a Business by other organizations which are competing to increase their share of the same market. The main competitors for Richer Sounds are broken into 4 main groups: 1. Large chain stores. E.g. Curry's, Dixon's and Comet

2. Small specialist shops

3. Large online electronic suppliers. E.g. QED–UK

4. Large online general supplier. E.g. Amazon and Tesco.

These Businesses' compete in many ways. The 3 main ways are Advertising, Lower Pricing/sales and through Market shares. With competition like that, Richer Sounds obviously has to work hard, and they seem to be doing well.

Richer Sounds are constantly researching the sales prices of their competitors, so that...show more content... Richer Sounds can do many things to become more competitive and these are all windows of opportunity.

They could lower their prices and advertise themselves. Richer Sounds is not so well known, and so even if their prices are low people would not know, therefore alongside lowering prices, Richer Sounds would have to do a brilliant job at advertising.

They could also try and get the latest technological equipment in their stores before other companies, and again if they advertise the products well, they can achieve a larger part of the market share.

Richer Sounds needs to open more locations, especially on the High Street, where people will walk past the store everyday, and also notice it.

Benchmarking is very important for Richer Sounds. Benchmarking is basically the comparison of certain things in order to attain complex information. If Richer Sounds benchmarked their products against other companies, they would be able to understand how they can improve more efficiently. Benchmarking can also be used to find out what your company Market Position is, and what status you have in the marketing world. Richer Sounds mystery shoppers are doing a fantastic job at turning up as customers in the competitive stores. What better way, to find out about deals and company limits, than to test them as customers. The information gained by the mystery shoppers is then sent to the Richer Sounds headquarters, where it is

Introduction

It is rooted in human nature to compete for what we need and sometimes even what we think we deserve. Competition has many different faces and a variety of names. May it be swimming, football, or two employees competing for a promotion, there is no difference in objective. Workplace competition is a perfect example of win–oriented behavior. The basic premise is outmaneuvering opposition to advance quickly through an organization. I believe this is a Human Resource topic because the HR manager has to know what's going on in his company and how his staffs strive to be the best. The competition occurs naturally because of the employee's motivation to reach higher levels of employment. Quantifying employee productivity has even become less difficult in areas where there are always deadlines and quotas. After all, who wants to be an entry–level worker earning an entry–level salary their entire professional career? Literature Review Competition offers an avenue for competitors and businesses to flourish. It occurs inevitably in almost any organization or part of life. Organizations usually thrive when members engage in some type of competition. Frederick P. (2008) says, "Without competition, you'd be on cruise control, with no worries in the world. This makes you vulnerable and prone for mistakes that can be costly. With competition around, you are more likely to keep your eyes open and capture every detail along the way so that you remain on top of your game."

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Piano State Competition Essay

Six months and countless hours of practice and it is about to be finally over. It's time for the Annual Piano State Competition. I was so nervous for this morning's competition. Today is the day that I will compete with other 7th and 8th graders in the KMTA Piano Kansas State Competition. "Melody, make sure you go over the spots that you need to work on", Mom said, throwing off my concentration. "Okay, I'll get to it in 10 minutes." as I look back at the mantle where my other trophies are displayed along with the TV. I wasn't so sure about getting first place or even second this year. Last year was an easy group to compete against. However, I still felt confident that I could pull off an Honorable Mention medal. Too bad we have to drive all the way to KU in Lawrence for the competition. The Royals at least won the World Series with home field advantage. I have to compete in Lawrence under a "hostile" environment. (My dad went to MU.)The songs that I had practiced over from June to October were mere child's play compared to other competitors in the group who played pieces like Claire de Lune and the 12 Variations ofTwinkle Twinkle Little Star(no one in middle school...show more content... This was unfair to the others in the group including me and my friend. I felt like I was about to explode. Sure, winning a trophy is cool, but that's not the point. The point is that the person who performs the best should win; not the person who gains an unfair advantage. We went back down to the trophy presentation area to see what place I had received and I thought for sure I wasn't going to be first because of that kid's dad. I can't even follow this guy's thought process. We heard that he was even standing in the doorway thinking "Should I do it? Should I not? And even still, he went with the unjust

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We all sat down on stage, sharing both nervously and excited glances with each other. We watched Mrs. Sharpe take the stage and raise her hands into position. The whole band raised their instruments. I saw her count us off, and heard the intake of breath right before we started to perform. On Saturday, April 22nd, 2017, one of the greatest days of my band career occurred. For months, me and the Westville High School band, had prepared for the 2017 ISSMA Band Competition. Eight months have hardcore practice on our pieces and sight reading skills, all came down to this very moment. So how did it all start? How did me and my band get here? It all started in September of 2016. Mrs. Sharpe, our band director was going through the list of...show more content...

It was becoming one of my favorite pieces, but there was one problem. At this point, contest was only a few months away. Four to be exact. We had gone through numerous pieces of music, but couldn't decide on any. Then one day, Sharpe had us sightread a new piece. This new piece was called "Blue Ridge Reel." She turned on to the recording and we all listened as light bubbly music filled the room. The sound of tambourines and flute were the start of the piece. Me and Danny shared looks with each other. This piece sounded like a flute feature. A difficult flute piece. I glanced behind me to see what Conner thought, but instead saw him dancing to the music. I turned back around because I knew that I'd end up laughing to hard if I said anything. The piece kept repeating the same part over and over again. The same melody was echoed back and forth between the different parts, and it sounded amazing. After the piece came to an end, Sharpe explained to us why it was called a reel. A reel is a lively Scottish or Irish folkdance where the melody is repeated and passed along between the different instruments. She handed us our music and I knew that the rhythm would be difficult. I thought to myself "Why are we even trying? She's giving us these incredibly hard pieces that we'll never be able to perform, let alone in front of four judges, on stage, at competition! This is insanity...." If I had know we'd receive top score for Get more content

Pure Competition Essay

There are many industries. Economist group them into four market models: 1) pure competition which involves a very large number of firms producing a standardized producer. New firms may enter very easily. 2) Pure monopoly is a market structure in which one firm is the sole seller a product or service like a local electric company. Entry of additionalfirms is blocked so that one firm is the industry. 3)Monopolistic competition is characterized by a relatively large number of sellers producing differentiated product. 4)Oligopoly involves only a few sellers; this "fewness" means that each firm is affected by the decisions of rival and must take these decisions into account in determining its own price and output. Pure competition assumes...show more content...

If price is greater than average variable cost but less than average cost, the firm minimizes its loss by producing the P=MC output. The firm minimizes its economic profit at P=MC output if price exceeds average total cost.

Applying that MR(=P)=MC rule at various possible prices leads to the conclusion that the segment of the firms short–run marginal cost curve lying above its average variable cost curve is its short–run supply curve.

The market price of a product will equal the minimum average total cost of production it its in the long run. At a greater price, economic profits would cause firms to enter the competitive industry until those profits had been competed away. At a lesser price, lesser would force the exit of the firms industry until the product rose to equal average total cost. The long– run supply curve is horizontal for a constant–cost industry, up–sloping for an increasing cost industry. The long–run equality of price and minimum average total cost means that competitive firms will use the most efficient known technology and change the lowest price consistent with their production cost. The long–run equality of price and marginal cost implies that resources will be allocated in accordance with consumer tastes. The competitive price system will reallocate resources in response to a change in consumer tastes, technology, or resource supplies to maintain allocative efficiency over time.

In allocating resources, the competitive model dies not allow for

Competition can be healthy when it provides feedback to kids about their performance and improvement, when winning is not the primary objective and when kids get to learn about themselves under challenging situations. That way, win or lose, children will learn, grow and be better prepared for life which provides continual opportunities to play well with others and treat opponents with dignity and Get

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Types of Competition

Economic theory usually differentiates across the four major types of market structure: monopoly, oligopoly, monopolistic competition, and perfect competition. Although the list of market structures can be virtually unlimited, these four types are considered to be the basis for understanding the principles of market performance in different market conditions. Each of the four types of market structures possesses its benefits and drawbacks. In any of these markets, an entrepreneur can develop a strategy appropriate for conquering a part of the market niche. Although for many entrepreneurs monopoly seems an excellent choice (no competitors and full control over the product and its price), in reality it is monopolistic competition that...show more content...

In perfect competition, no barriers to entry or exit exist, and firms are free to move across their markets. Certainly, perfect competition seems a perfect choice for customers, while monopoly will seem like a perfect choice for entrepreneurs – no competition, full price control, and full control over the product assortment. However, as an entrepreneur, I would rather choose monopolistic competition. My choice is justified by several reasons. Fist of all, monopoly prevents entrepreneurs from entering the market, while monopolistic competition markets are free for entry, and as an entrepreneur I may enter any market I deem appropriate and effective in terms of maximizing my profits. Second, monopoly does give some control over prices and product assortment, but in the current world, customers always seek to diversify the range of products they use. Monopoly does not leave any chance for differentiation, and as an entrepreneur I will always want to have several different products that will be sold to several different groups of consumers. Finally, it is due to the fact that competition drives innovation and gives me sufficient stimuli for growth that I can make my business grow. As such, in conditions of monopolistic competition I may have fewer opportunities for maximizing my profits for the sake of full control over prices and assortment, but I am more confident that my business will grow for the account of better customer satisfaction

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Pure Competition

CHAPTER 23

Pure Competition

A. Short–Answer, Essays, and Problems

1.How does pure competition differ from other basic market models?

2.What are some examples of the four different market structures?

3.What are four characteristics of pure competition?

4.How would you describe the demand curve for the purely competitive firm? For the industry?

5.What is the difference between average, total, and marginal revenue? What is the shape of the total and marginal revenue curves for the individual competitive firm?

6.Why does price equal marginal revenue for the purely competitive firm? What is the relationship to the demand curve for the firm?

7....show more content...

18.The agricultural market for corn can be characterized as a purely competitive industry. How might the following events affect the short–run cost curves and output for a firm in the industry?

(a)A reduction in the cost of fertilizer that is sold to corn farmers. (b)The Internal Revenue Service (IRS) changes tax laws which increase the amount of depreciation that farmers can deduct for equipment. (c)The market price of corn falls.

19.Assume a single firm in a purely competitive industry has variable costs as indicated in the following table in column 2. Complete the table and answer the questions.

Is Competition Beneficial? Competition is prevalent in various aspects of life, including sports, school, and jobs. Everyone at some point in their lifetime will have to compete against others in order to achieve a goal or earn a prize. It's how the world has worked for a long time; it's survival of the fittest and this minor competition between everyone is how we have continuously gotten smarter, faster, and stronger. Competition is necessary to a certain degree, but how much is too much? It's definitely not a bad thing, and as long as there's a healthy amount, it can be beneficial because it fosters self–improvement, and it will push people to go all out and try their absolute best. Firstly, with the right amount of competition, self–improvement...show more content...

Alfie Kohn's article "The Case Against Competition" describes the consequences that can result from extreme competition. He writes that, "Competition is to self–esteem as sugar is to teeth." In this quote, the author is trying to say that competition damages self–esteem in the same way that sugar damages teeth. That is partially true, but sugar is only unhealthy when you have too much of it and when you don't properly care and look after your teeth. Sugar is actually important because it provides our body with important energy so as long as you consume a reasonable amount and have good oral hygiene, there is no problem. The same concept would apply to competition; it's only detrimental if there's too much and you're not properly looking after yourself. Everything, and I mean everything, is unhealthy if there's an excessive amount of it, but that doesn't you can't have anything that could have a negative consequence. If that were the case, people would never do anything because of the small risk of something going wrong. Yes, there is a risk to everything but generally speaking, most things help you more than they hurt you. For instance, we need water, but drinking too much water will literally kill you. We need sunshine because it has vitamin D, but overexposure to sunlight will cause skin cancer. Does that mean we should stop drinking water and not go outside because it can hurt us if there's too much? No, of course not. The key is moderation. Having too much or too little of anything is not good for you, but you can avoid hurting yourself if you just find the right balance. Given these points, competition is only bad for a person if there's an overwhelming amount of it, but nothing will go wrong with a reasonable quantity of

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Competition Is Bad Essay

"Losers are always in the wrong" ,it is a Chinese traditional saying. In a society where the places have people, competition is unavoidable. Competition is a part of life that can't (cannot) be avoided. Competition is a situation in which two or more people or groups are trying to get something which not everyone can have. Competition is all around us. When we are students and still studying in school, we need to compete with our classmates and schoolmates for better grade.Also, when we are doing sports and games we are trying our best to beat the other teams. When you become a (an adult) maturer and go to work, you would compete with your colleagues, (.) So please (be more hardworking )do more works and get a key[] to a higher and better salary.Companies compete with each other to get more customers, incomes...show more content... We can improve ourselves and we can learn and study from the competition .To prove this, in China, it is very popular even normal now to have a teacher who come to student's house to teach extra contents with paying a lot of money.Their parents wish they can learn faster than what they learn at school. Furthermore, during the vacations, students study abroad to learn English for a month instead of playing video games at home. If they have this experience such as summer school in American university, it is one of the greatest bonus point to apply a university in western countries. What is more,we have one national examination to decide which college that you can enroll.The circumstances are full of competitiveness in China now because China has salient characteristic of a large population base. Obviously, only the highest 15% can go to the good quality colleges. Students try to learn as much as they can, to win the competition to obtain good quality schools.Finally,lf you can achieve an outstanding diploma such as the doctor of Peking University and Tsinghua University, you future will be very

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Perfect Competition : A Competitive Market

Perfect Competition

A perfectly competitive market is a hypothetical market where competition is at its greatest possible level. Economists argued that perfect competition would produce the best possible outcomes for consumers.

Key characteristics

Perfect knowledge – knowledge is freely available to all participants, which means risk–taking is minimal. Rational Decision – Maximize their self–interest – consumers look to maximize their utility, and producers look to maximize their profits. No barriers to entry – into or exit out of the market.

Homogeneous – firms produce, identical, units of output that are not branded. Price taker – taking its price from the whole industry. A single firm will not increase its price independently given that it will not sell any goods. No government regulations – except to make market more competitive.

Externalities – No external costs or benefits to third parties not involved in the transaction. Normal Profits – In the long run, although they can make abnormal profits in the short run.

Benefits –

Perfect knowledge – there is no information failure and knowledge is shared evenly between all participants. No barriers to entry – so existing firms cannot derive any monopoly power. Normal Profits – so producers just cover their cost.

Advertising – no need to spend money on advertising, because there is perfect knowledge and firms can sell all they can produce. There is also maximum choice for consumers. Although

Perfect Competition

Perfect competition is an idealised market structure theory used in economics to show the market under a high degree of competition given certain conditions. This essay aims to outline the assumptions and distinctive features that form the perfectly competitive model and how this model can be used to explain short term and long term behaviour of a perfectly competitive firm aiming to maximise profits and the implications of enhancing these profits further.

In a perfectly competitive market each firm is a "Price Taker" , i.e. the prices and wages are determined by the market and the firm is so small relative to the size of the market that they can have no influence over the market price. For a market to be...show more content... This is also linked into the behaviour of the buyers in the market. Buyers are also price takers because they can purchase as much as they wish without influencing the market price. The final assumption is important when considering the long term equilibrium price of a firm inperfect competition. This assumption is that entry into the market is free and that there are no barriers to entry. Any costs incurred are incurred by all of the suppliers; an entrant will pay no additional cost for entering the firm.

In the short run the perfect competition equilibrium can be found by graphing the marginal cost (MC), average total cost (ATC) and marginal revenue (MR) curves. In perfect competition the price is equal to the average revenue, which is equal to the marginal revenue and these are all constant, giving an infinitely elastic demand curve for the firm. The demand curve is "perfectly price elastic" due to the homogeneity of the products supplied, where each supplier, as a price taker, must focus on a single price. Given this, the only choice a supplier has in the short run is how much to produce. For profit maximisation to occur marginal costs (supply curve) must equal marginal revenue (demand curve). Profit maximisation is assumed to mean the maximisation of normal economic profit (i.e. revenue that covers the

Throughout recent history, the United States (U.S.) is one of the most powerful nations on earth. It is constantly trying to maintain that number one position. Therefore, to enable the United States to maintain its status it must always know its competitors. The Federal Republic of Germany is one of those competitors. The best way the U.S. can know its competition is by analyzing the German politics, economy, and military. Germany is a country in north–central Europe. It is one of Europe's largest countries, with various terrains. Germany has a large urbanized area along the west, icy coastlines in the north, the world famous Alps in the south, and vast expanses of agriculture and rivers in the east. The capital of this ...show more content...

While the position of the president is mainly ceremonial, the president appoints and dismisses federal judges, federal civil servants, and commissioned and non–commissioned officers of the German Armed Forces. Nevertheless, the Chancellor acts as the head of the German government. The Chancellor proposes the appointments and removal of federal ministers, and sets policy for the federal government. Orders of the president are useless without the Chancellor's signature, and the Chancellor's role is closer to the role of the U.S. President (Constitutional History of Germany, n.d.). The legislative branch has two houses, similar to theUnited States Congress. Members of the "Bundestag", or lower house, are elected by the country as a whole and the member serves a four–year term. The "Bundesrat", or upper house, is comprised of members of the 16 state governments and these members represent the interests of those states. New federal laws are adopted by the Bundestag and are then submitted to the Bundesrat for approval. Laws created by the Bundestag may require Bundesrat consent, if the new laws do not require the consent of the Bundesrat; the house may still veto the law. The Bundestag in these cases can overturn the Bundesrat's veto, moreover reducing the power of one entity. The judicial branch consists of the Federal Constitutional Court and other Federal Courts. The Federal Constitutional Court

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The seconds simultaneously ticked by as a haze devoured my focus preceding the upcoming competition. My eyes strained to see the clock hands plunging forward as I anxiously stood awaiting the moment when the proctor would announce my name, and invite me into the nearby room. Sweat began to glaze the palm of my hand that patted down my rather puffy hair that was a result of the humidity present in Orlando, Florida. My heart skipped a beat, I glanced once more at my notecards, and strode into the room I was designated to compete in. The National Leadership Conference for BPA, Business Professionals of America, left a dramatic impact on my life. In addition to nationals, regional and state competitions taught me a lesson that...show more content...

I was like a bird learning to fly. I didn't really know what I was doing but I tried my best. I presented to the best of my abilities and hoped for the best. The day came to an end and that award ceremony was about to start. I decided that I wouldn't be disappointed if I didn't place, and reasoned that I had three years left in high school and would have a better chance of winning as a more experienced upper classmen. Once again, I was using being a freshman as an excuse. Unexpectedly, I placed first in both of my competitions and qualified for state. During this pivotal moment my eyes were opened to what I could accomplish. I suddenly started to expect more out of myself. I was going to state and wouldn't be knocked out without a fight. During state I took full advantage of the opportunities provided and tried to excel in every aspect placed before me. Unlike regionals, state was huge: the competitive environment was intense, the atmosphere was exciting, and the diverse emotions could be felt. The entire state of Idaho was represented by BPA's 'cream of the crop'. Once again, I did not have high expectations of myself. I was thrilled I had the opportunity to participate at BPA's state competition and felt honored to be among Idaho's best. After agonizing over my competitions and presenting to the best of my abilities, unexpectedly I found myself in the top ten of both events. Adrenaline filled my veins as I

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Draft Heart beating rapidly and my mind full of questions. Did I do this to my best ability? Did I beat the person next to me? For as long as I can remember every action is competition school, sports, and even the way things are done. I physically and mentally do the impossible to be one of the best. Running two miles after finishing basketball practice or staying a hour after to work on my shot. I work so hard I forget I play so have fun.I have come to the conclusion that some things are better done without competition. Competition has developed the person I am today, but I have come to question my thoughts on the competition. There are good and bad times to use competition. For every sport–volleyball, basketball, and softball game...show more content...

Senior night for volleyball is around the corner.It is not the day and already my mind is thinking about the million things that can go wrong and right. With every competitive thought I try squeezing a positive thought about the fun of my very last home volleyball game. Being competitive makes me stumble and being competitive made me, me. Five years old, short, and uncoordinated I used every moment to be better. I tried my hardest to be the best and do the best. I would race my six year old brother, Rigo, running as fast as my little legs could move. Breathing heavily and legs feeling like jello I would race him over and over again. I was a determined little girl that was going to beat him in that twenty–five yard grass in the front lawn. Being competitive made me fast and a hard worker. When math minutes came to Grand View Elementary I was eight to ten years old. I was excited for this new challenge. Waiting anxiously and sweaty hands. "Ready, set go!" the teacher announces as she starts the timer.The second the teacher said go pencil in hand, I flipped the paper and starting answering questions one by one. A minute later there I sat in my brown wooden desk, hands shaking, "can we correct them right now?" I asked. I was anxious to hear if I

a.Theory of Competition Competition in the economic sphere denotes the process of rivalry between firms for the patronage of customers. The European Commission defines competition as a situation in which firms or sellers "independently strive for buyers' patronage in order to achieve aparticular business objective, for example, profits, sales, or marketshare"7. Richard Whish refers to competition in the commercial world as "a striving for the custom and business of people in the market place"8. In this sense, competition is the equivalent of rivalry between firms; this rivalry may be in different forms such as for price, service, or a combination thereof, or other factors. Competition is at the heart of the market–based economy. The debate about the relative merits of a market–based economy versus a state–controlled, planned economy that raged for decades seems to have been broadly settled in favour of the former. Countries across the globe are reforming their economies, and undertaking privatization and deregulation. As they do so, the forces of competition come increasingly onto the centre stage of the economy. Competition is the process by which sellers strive to gain the patronage of buyers in achieving their primary objectives of increased sales, larger market shares and greater profits. Sellers are more likely to attract and retain buyers if the quality of their goods or services is higher and the prices lower than those of their rivals, or if they are innovative in

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Competition. This word varies in connotation. To some, it symbolizes joy, triumph, and self–satisfaction, while for others the word represents worthlessness and failure. Since an early age, kids are taught about competition through games and sports. Kids develop skills like sportsmanship, integrity and fair play. Competition is like water in a sieve. To argue that competition does not exist is like saying that water is not leaking from a sieve when only one hole is clogged. Competition is everywhere. In today's society, there has been a lot of controversy over academic competition in school. Many see academic competition has a looming rain cloud that hangs over the students who excel differently, and cannot find success in the standard school system. They see competition as emphasis on arbitrary performance. Yet, competition is not all that bad. Competition is what helps us learn and grow as people. If students did not know the difference between a win or lose, then how would they know where to improve? Academic competition gets a negativeconnotation, but in reality, it has an overall positive impact. In a recent article, it was discussed how students are experiencing an overwhelming amount of stress from competition. Students, tired and sleep deprived, dread school not because of the workload, but because of the academic competition. "While I understand that competition is an important motivator to many students, I believe that our mental wellness would be significantly

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Did you know that sports and regular exercise provide physical and mental stress relief, which can help certain mental health disorders like depression and anxiety. There has been a long disagreement about whether kids should be able to play sports or not. I believe that they should be able to. I do know that sports can cause problems, but I believe the benefits overweigh these problems. Competitive sports can help deal with varieties of these discomforts including physical, social, and mental health. In sports you can gain social skills, and make friends, while staying fit. Sports can boost self–confidence. Also, sports keep kids healthy. I will be arguing that kids should be able to play competitive sports. My first reason is that...show more content...

Take it from me, I used to and sometimes still do stress for gymnastics competitions. When I get on the floor and am ready to compete, I just think "I have been doing this for months. There is no reason to be nervous. I just have to do my best and I will be happy." As a result, you will be less stressed out, and can enjoy the sport you are passionate about. My third reason is that sports keep kids healthy. Sports are a major benefit when it comes to physical health. If you are looking toexercise more, but don't want to compete, there are other opportunities for you to choose such as martial arts, or yoga. Kids need physical activity everyday and playing sports will fill that need. "Exercising everyday will increase their chance of being a healthy adult." (Mary L. Gavin, 2017) Although injuries can happen while playing sports, I think the benefits such as life skills, are much more worth it when it comes to later life. On the other hand, kids who play sports tend to stay more fit. Most kids don't have the motivation to work out themselves, and joining a sports team will keep them working out. According to CNN's article "Team sports help keep teens fit", a study found that the kids who played on three or more sports teams in a year, were 27% less likely to be overweight, and 39% less likely to be obese than those teens who did not play team sports. (Val Wadas–Willingham, 2012) This is saying that kids who play sports fill the need of

Competition in the Health Care Industry Kelly Montagano Health Care Planning and Evaluation Instructor Sowle November 25, 2011

The driving force for any kind of business or organization is competition. Without competition there would never be a need to grow or to better the services or products being offered. In the healthcare industry competition takes many different forms and happens within many different types of healthcare organizations. Competition can take place among hospitals, health plans, physician groups, drug companies, between hospitals and physicians, between hospitals and health plans, and many more. Competition drives companies to work at their full potential as well as constantly evaluate their business strategy....show more content...

Since health care is becoming more consumer based, it is imperative that the organizations within the industry become more consumer friendly and gear their marketing toward prospective customers. In doing so, they need to be aware of the specific market segments that they are competing with. A market segment is a subgroup of actual and potential customers within the larger market whose needs are similar to each other and also significantly different from the needs of customers in other subgroups. The market for health care services can be subdivided in an infinite number of ways. The goal is to define segments with unique characteristics that permit an organization to target an effective strategy at them (Moseley, pg. 77). Health care organizations must follow the constantly shifting mix of market segments in order to become aware of new opportunities and threats with strategic implications; not doing so can mean a loss of business. One of the best ways to understand the nature and intensity of the competition of an industry is through the five forces originally defined by Michael Porter. The interplay of these forces determines the profit potential of the industry, and what a firm will be able to accomplish there. The first force mentioned is competitive intensity; how strong is the force of the rivalry

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Competition Between Companies And Companies

Companies compete against each other to gain market shares, which are the driving force to changes in the market, and to earn higher profits. Without competition, companies know they can survive in the market without and produce mediocre products and lack the will to excel. Competition between companies forces companies to excel and find ways to reduce costs. By reducing costs, companies are able to see the benefits immediately. Therefore, competition is good for consumers. Companies may use several forms of competitive behavior such as conflict, competition, coexistence, co–operation and collusion. A company can use aggressive pricing to force out competitors in the market with cost cutting resulting in conflict. For example, a company can be sensitive to large volume orders, thereby providing a competitor the chance to increase their market share. A company's objective is to increase sales, profits and gain a larger portion of the market share through competition. Companies may exist in the same market or market segment (coexistence) but may have some differences although they respect their differences. A company may decide to co–operate by teaming with another company to provide a competitive advantage or increase their market share. In addition, a company may decide to offer a fixed–price for their products so consumers will not shop for a better deal. Marketing and pricing strategies for a company may include the following: Price skimming – a product that has a