Competitive Environment and Market Structures

Flashcards covering key vocabulary related to competitive environments and market structures.

Competitive Environment

The various factors and conditions in a market that influence businesses and their strategies.

Perfect Competition

An ideal market situation with many buyers and sellers where no single company controls the price.

Monopoly

A market structure where one producer controls the market, and entry for new firms is very difficult.

Natural Monopoly

A situation where one company can produce at a lower cost than many companies, particularly in industries with high infrastructure costs.

Oligopoly

A market structure dominated by a few firms that can influence prices, often with similar products.

Globalization

The process of international trade and movement of goods and services, often accompanied by global communication.

Competition Authorities

Government bodies responsible for regulating market competition, such as the Competition Commission in the UK and the Federal Trade Commission in the USA.

STEEP Analysis

A analytical tool used by businesses to understand external factors affecting them, covering Social, Technological, Economic, Environmental, and Political factors.

Economic Factors

Aspects of the economy that impact businesses, including inflation, unemployment, and economic growth.

Future Uncertainty

The concept that businesses must navigate an unpredictable future, making trend analysis and adaptability crucial.

Socio-Cultural Factors

Changes in society and lifestyles that affect consumer behavior and business demand.

Political Factors

Government policies and regulations that impact how businesses operate.

Strategies to Increase Market Power

Methods companies may use to gain more market control, including legal and illegal strategies.

Technological Factors

Changes in technology that impact how businesses function and meet consumer expectations.