Premium Essay

Competition

In: Business and Management

Submitted By halfmail
Words 10834
Pages 44
ON COMPETITION

Strategy and the Internet

97

Some companies, for example, have used Internet technology to shift the basis of competition away from quality, featurs, and service and toward price, making it harder for anyone in their industries to turn a profit.

98

When seen with fresh eyes, it becomes clear that the Internet is not necessarily a blessing. It tends to alter industry structures in ways that dampen overall profitability, and it has a leveling effect on business practices, reducing the ability of any company to establish an operational advantage that can be sustained.

103

Internet Technology provides buyers with easier access to information about products and suppliers, thus bolstering buyer bargaining power.

105

With more competitors selling largely undifferentiated products, the basis for competition shifts ever more toward price.

107

On the Internet, buyers can often switch suppliers with just a few mouse clicks, and new Web technologies are systematically reducing switching costs even further.

ON COMPETITION

Strategy and the Internet

97

Some companies, for example, have used Internet technology to shift the basis of competition away from quality, featurs, and service and toward price, making it harder for anyone in their industries to turn a profit.

98

When seen with fresh eyes, it becomes clear that the Internet is not necessarily a blessing. It tends to alter industry structures in ways that dampen overall profitability, and it has a leveling effect on business practices, reducing the ability of any company to establish an operational advantage that can be sustained.

103

Internet Technology provides buyers with easier access to information about products and suppliers, thus bolstering buyer bargaining power.

105

With more competitors selling largely undifferentiated products, the basis...

Similar Documents

Free Essay

The Competition

...The morality of Competition Summary about competition often take the form of: Is competition good or bad? This is indeed the way the main contemporary researchers deal with the problem. Is competition good? They answer: No. Is it bad? Yes, in every way, bad psychologically, developmentally, physically, socially, educationally, and productively. But is this really the case? Surely competition is sometimes bad, but is it always bad, or always as bad as it sometimes is? Consider the following vignette: Jane and Tom lived in a small town. Married with five children, Tom was a carpenter and Jane a homemaker. When Tom lost his job and couldn't find another, Jane offered to go to work to make ends meet. Tom felt threatened. At that time, the carpenter's union was under a federal court mandate and offered an apprenticeship program to women. Jane decided to sign up. After some initial adjustment, and with the encouragement of a woman instructor who had pioneered the entrance of women into the trades, she learned quickly and in a couple of years became a master carpenter, a higher skill level than her husband's. Jane felt guilty about making her husband look bad. But she also knew that without her help her family would have nothing but temporary unemployment insurance to live on. She was also proud of her accomplishment....

Words: 2894 - Pages: 12

Free Essay

Competition

...Most of world goes through competition every day to be on top. So, when someone says it is in our blood or DNA, it is actually our human nature and will people use it in everyday living and the competition they will have to go through in the year. Second is competition improves us inside...

Words: 1126 - Pages: 5

Free Essay

Competition

...“Survival of the fittest” – Competition or Cooperation? Among the most damaging myths and metaphors in business talk are those macho 'Darwinian' concepts of 'survival of the fittest' and 'it's a jungle out there'. The underlying idea, of course, is that life in business is competitive and it isn't always fair. But that obvious pair of points is very different from the 'dog-eat-dog', 'every [man] for [him]self' imagery that is routine in the business world. It is true that business is and must be competitive, but it is not true that it is cut-throat or cannibalistic or that 'one does whatever it takes to survive'. However competitive a particularly industry may be, it often rests on a foundation of shared interests and mutually agreed-upon rules of conduct. The competition takes place not in a jungle but in a community which it presumably both serves and depends upon. Business life is first of all fundamentally co- operative. It is only within the bounds of mutually shared concerns that competition is possible. And quite the contrary of the ‘every animal for itself’ jungle metaphor, business almost always involves large co-operative and mutually trusting groups, not only corporations themselves but networks of suppliers, service people, customers and investors. Competition is essential to capitalism, but to misunderstand this as 'unbridled' competition is to undermine ethics and misunderstand the nature of competition too....

Words: 255 - Pages: 2

Premium Essay

Competition

...THE COMPETITION ACT, 2002 No. 12 OF 2003 as amended by The Competition (Amendment) Act, 2007 2007 THE COMPETITION ACT, 2002 1 No. 12 OF 2003 [13th January, 2003.] An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY Short title, extent and commencement 1. (1) This Act may be called the Competition Act, 2002. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Definitions 2....

Words: 35018 - Pages: 141

Free Essay

Competition

...Discussion of the European Union’s competition policies Since the turn of the century, Europe’s economic prosperity has rested upon the European Union’s competition policies and regulation of abusive market structures and anti-competitive behaviour. The last fifty years have illustrated that open markets foster innovation and efficiency, while delivering Europeans higher quality products and services at lower prices. This will ultimately lead to Europe’s economic growth, despite the possible infiltration of foreign low cost, low skill producing firms. Suggesting Europe’s future shift towards a knowledge based economy with a focus upon the development and sharing of new technologies (Bannerman, 2002). The following paper will examine the EU’s role and approach towards competition policy with a focus on the economic implications. Abusive market structures and anti-competitive behaviour have been battled by the EU to preserve competition, fearing that cartels will exploit their pricing power to damage consumers. The magnitude of the damage is directly correlated to the elasticity of demand, where a strongly inelastic customer would suffer due to the unavailability of substitutes. Furthermore, anti-competitive market structures create barriers to entry through the ownership of resources, economies of scale, and predatory pricing that stunt future innovation and efficiency....

Words: 645 - Pages: 3

Premium Essay

Competition

...It is thus timely to take stock of where we are and examine the state of competition and competition policy in the Philippines to help sustain and maximize benefits from the reforms. Competition policy consists of measures intended to promote a more competitive environment as well as measures designed to prevent a reduction in competition. Examples of measures intended to promote a more competitive environment are policies to ease entry into the banking industry, and policies to encourage more players in the shipping, airline, and oil industries. Examples of measures...

Words: 2654 - Pages: 11

Free Essay

Competition

...John Johnson Abstract: Competition between various species can differ on the amount of abundant or limited resource availability and the rate at which resources can be consumed. The competitive exclusion principle is that two organisms cannot occupy the same niche. However if two species do not completely overlap, then we see instances of coexistence between each species. However, competition variability is seen between same specie organisms and among differing species. Competition between two of the same species is known as intraspecific competition while competition seen between different species is referred to as interspecific competition. Our competitive study models the two types of competition previously stated while measuring the results to show the effects of each. Our study hoped to show that if there were no intraspecific interaction between species A then there would be no difference in the amount of survivors nor a difference in the average mass of survivors. We show how intraspecific competition is more important than interspecific competition based on the fact that each individual in a population of the same species has a higher need for limited resource availability. Introduction: The purpose of our experiment was to compare competition interactions between (interspecific) and among (intraspecific) species at various density levels....

Words: 2328 - Pages: 10

Premium Essay

Competition

...Competition Factor Between the 20th century 80s to 90s, the growth of automobile industry is very slow, and many American companies try to use discount and some preferential policy to attract customers. At the same time, more and more Japanese cars were preferred by customer cause of their high quality and attractive price, like Honda, Toyota and Nissan. Compared with Ford, Japanese cars used higher technology and control the price at the same time. So how to prevent it? Before the umbrella break, Ford should have a good discernment, not only focus on itself or American competitors, but also the whole world. Let’s see the picture: When the problem was almost happening, I would try to know how did they do that, nothing is prefect, everything has its defect. So find out the defect and...

Words: 3987 - Pages: 16

Premium Essay

Competition

...Rivalry is high because the competition in the computer industry is very intense among very few serious competitors. The top four PC vendors (Hewlett-Packard, Dell, Lenovo, and Acer) accounted for 53.6% of worldwide shipments in 2011. Leadership in the industry has shifted numerous times, leading to slight differentiation and price competition by each company in an attempt to get ahead. Threat of new entrants is a weak competitive force for the PC industry. The presence of the four existing dominant players and significant barriers to entry deter new competitors from seriously entering the market. A new company would need to heavily invest in research and development and quickly generate brand recognition, and therefore would be unlikely to cause a large threat. Bargaining power of buyers Michael Porter explains in detail the largest factors influencing profitability in any industry in the article The Five Competitive Forces that Shape Strategy and gives his opinion on what to do once they are identified. These five factors can be evaluated with respect to the Personal Computer (PC) industry based off of a 2012 case study of Apple Inc. Michael Porter explains in detail the largest factors influencing profitability in any industry in the article The Five Competitive Forces that Shape...

Words: 397 - Pages: 2

Free Essay

Competition

...Why Buying Toothpaste Is Nearly as Painful as a Trip to the Dentist Retailers sell 353 types and sizes of toothpaste. In 2010, 69 new kinds of toothpaste were introduced to consumers. Both of these figures actually represent a decrease from previous years, when more than 400 varieties of toothpaste lined store shelves and over 100 new products came out annually. And guess what? Dentists say it pretty much doesn’t matter what kind of toothpaste you use, so long as you actually use it. Toothpaste probably doesn’t belong on the list of most painful shopping experiences—I’ve nominated cars, mattresses, and cell phones and wireless plans for the honors—but that’s mainly because toothpaste doesn’t cost (or hurt) nearly as much as those other purchases. But, what with all the confusing jargon and dizzying number of products to pick from, buying toothpaste seems more painful than it ought to be. For the average shopper who is not brand loyal, and who just wants a good product that’s good for his family and a good value, toothpaste can be located right up there in the confusing department next to the shampoo—which, by the way, is available in 187 varietals in some stores. That’s actually after stores tried to simplify the selection because shoppers felt overwhelmed; there used to be 248 different shampoos to choose from. The toothpaste data, and the inspiration for this post, come from a WSJ story exploring why there are so damn many toothpastes, and why picking one can feel like......

Words: 543 - Pages: 3

Free Essay

Competition

...Albert Heijn could take over scrapped Delhaize locations Jun 13, 2014 0 supermarketscostjobs Alan Hope Representatives of Delhaize staff are due to meet prime minister Elio Di Rupo today to discuss the company’s announcement of 2,500 jobs losses and the closure of 14 stores across Belgium. Meanwhile, Dutch supermarket chain Albert Heijn (AH) opened a new location in Bruges yesterday, the 21st in Flanders, amid talk that they could take over some of the Delhaize outlets. Delhaize plans to close eight stores in Flanders, including in Genk, Kortrijk and Turnhout. “We’re always on the lookout for locations,” said AH spokesperson Sally Herygers. The supermarket chain, the biggest in the Netherlands, opened its first store in Belgium in 2011. It now has 21 stores across Flanders, including Antwerp, Turnhout, Lier, Sint-Truiden, Kortrijk, Ghent and Aalst. The company employs 1,370 people. According to the company, the stores “always perform beyond expectations”. Meanwhile, Alvo, the organisation for independent supermarket owners, has said it can provide a takeover candidate for all of the stores Delhaize wants to close. Alvo is also interested in the eight stores in Flanders, according to director-general Etienne Vanbosseghem. “We are always looking for opportunities to increase our growth. But let’s be clear: we’re not interested in taking over the Delhaize stores. But we do have a number of interested independent operators for them, which are members of Alvo.” Whether......

Words: 373 - Pages: 2

Premium Essay

Competition

...Ethics Essay There are three major approaches in normative ethics including virtue ethics, deontological ethics, and utilitarianism. This paper is going to compare the similarities and differences between virtue theory, utilitarianism, and deontological ethics. It will include a description of the differences in how each theory addresses ethics. Virtue ethics focuses on how to be and studies what makes the character traits of people. A person who has these traits will act by habit in certain ways not because of a person’s values, but because it is what a moral person would do. A soldier in the United States Military’s pledge is an example of virtue ethics because he pledges to uphold the responsibilities of his service. Utilitarianism theory of ethics states that an action is morally right when that action produces more total utility for the group than any other alternative. In other words, utilitarianism specifically looks at the advantages of happiness, providing the greatest balance of pleasure, along with reducing suffering. Deontology is defined as a “moral theory that emphasizes one’s duty to do a particular action just because the action itself is inherently right and not through any other sort of calculations – such as the consequences of the action.” For example, if you were to find someone’s wallet at a restaurant you have two decisions that can be made. First you can keep it or you can return it to the...

Words: 479 - Pages: 2

Free Essay

Competition Policy

...Better Regulation for Growth Regulatory Quality and Competition Policy Investment Climate Advisory Services of the World Bank Group With funding from FIAS, the multi-donor investment climate advisory service in partnership with BETTER REGULATION FOR GROWTH GOVERNANCE FRAMEWORKS AND TOOLS FOR EFFECTIVE REGULATORY REFORM REGULATORY QUALITY AND COMPETITION POLICY INVESTMENT CLIMATE ADVISORY SERVICES WORLD BANK GROUP ©2010 The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org....

Words: 13479 - Pages: 54

Premium Essay

Plant Competition

...Plant Competition INTRODUCTION This experiment was used to show the different types of competition between species. Competition was defined as being a “relationship between members of the same or different species in which individuals are adversely affected by those having the same living requirements, such as food or space” (Competition 2010). There are two different types of competition that we will be observing during this experiment. The first type would be intraspecific, which means “competition between same species” (1976). The second type of competition is interspecific, which is defined as “competition between different species” (1976). These two types of competition have helped us look at the different types of interactions between plants species. The lab manual says that intraspecific competition experienced in plants is often very intensely prevalent, and the interspecific competition has the potential to be, mainly because they use most of the same resources (2015). For the experiment conducted for this report, intraspecific and interspecific competition was looked at using numerous set ups of radish and bean plants, and measured through the leaf length and biomass of each particular pot planted....

Words: 1274 - Pages: 6

Premium Essay

Perferct Competition

...Perfect competition is that all firms operate by the same guidelines and that all buyers know about all substitutes for a given good that firms produce that are identical products. Perfect competition is the opposite of a monopoly. A perfect competition is when a firm supplies a particular good or service in which the firm...

Words: 1166 - Pages: 5