...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...
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...In America competition is in our everyday lives. Even if it is competing with someone else or yourself it is still considered competition. People are always trying to be the better person. Take politics for example when America is trying to pick a new president there is a competition to see who can win the people’s votes. What makes competition happen every day is because it is in our blood, competition can improve who we are, and competitions defines winners and losers. First of all it is actually in our blood and as humans we like to make ourselves be number one or the best of the best. As Catherine Latterell wrote in her essay “ Competition is part of human nature”(204). There is a saying for it and it is Survival of the fittest. The strongest will be the one to survive if they are more suitable to their environment then their opponents. Here is a good example and it is about an American sport called football. If we had the Miami Dolphins flying to somewhere like New York to play the Jets in the snow most likely the Dolphins are going to lose because they do not normally play in snow because of Florida’s environment is mostly tropical climates. In the story “ We Can Work It Out: The Beatles’ Creative Competition” written by Bruce Glassman says “The major dynamic of this early partnership was now becoming clear.” It was, more than anything, creativity based on competition. Neither writer wanted to be outdone by the others.”(223). These two song composers worked together and...
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...Competition as an economic concept is as old as the history of economic thought itself, with its place in economic theory firmly entrenched early on. However, during the past decade which ushered in the age of globalization, new and increasing attention has been focused on competition in policy discussions around the world. “Competition” then became coupled as a matter of course with “policy.” It is not that radically new concepts are being formulated. Rather, a growing need for new approaches in “competition policy” is being felt because of its linkages with international trade that have become highlighted with the reduction of trade barriers around the globe. From the Philippine perspective, however, there also arises a growing need to understand its implications more fully, brought about not just by what is happening in the global arena but even more importantly by various comprehensive policy reforms that have been implemented by the government during the past decade or so. The reforms starting in the mid 1980s have done much to move the economy toward a more market friendly policy environment. Trade reforms, banking reforms, foreign investment policy reforms, deregulation, privatization, and the policy thrusts in general have explicitly and implicitly recognized the benefits from 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...
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...Is Competition good? Competition is known as the act of competing. It is now a common issue that has been evolving in our society in the 21st century. Competition happens everywhere at any time. It will arise whenever two or more parties fight to strive for a goal that cannot be shared between one another. This particular goal includes basically everything on earth, for instance, money, land, power, and the list goes on. In my opinion, competition is certainly beneficial for everyone. It builds up our self-esteem and confidence, allows us to achieve the goals set in life as well as helping us to learn how to deal with successes and failures. First off, it is believed that human beings gain confidence and build up their self-esteem through competing with one another. Everyone has to go through a stage in life where some competition is essential for the development of self-esteem. With competition, everyone will try to do their best to not be wiped out by the rest. Therefore, if there is no competition, how can we actually improve? We may not know where we stand if we do not have competitors. This is the fact that they are able to prove to the others that they are capable of achieving something. Success will never come to us if we do not put in efforts to improve ourselves; competition makes it easier for us to achieve the goals we have set for. When we have competitors around us, we will always make sure that we are not left behind or defeated by...
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...maintenance, and are prohibited as they often render other retailers/distributors as uncompetitive in the free market. Is the Actions of Trek in recommending/fixing a retail price prohibited by the Act? The bicycle shops’ response in failing to offer you a discounted price, and only being prepared to offer you the lowest price possible of R20 000.00 amounts to a restrictive vertical practice which is prohibited in s 5 (1) of the Competition Act 89 of 1998 (Hereafter ‘the Act’). The bicycle shops are prohibited from solely relying on a minimum price which is fixed by Trek, as this amounts to an agreement between the parties which substantially prevents or lessens the competition in the market. An agreement with such an effect is prohibited by s 5(1) of the Act. More specifically, the issue deals with the practice of the minimum resale price maintenance which is explicitly prohibited in s 5 (2) of the Act, unless certain conditions are satisfied in s 3 (a) and (b) of the Act. The prohibition in s 5(2) of the Act was applied in following cases: The Competition Commission v Rainbow Farms (Pty) Ltd. The issue in this case was that the manufacturer/supplier addressed a letter to the stockists, requiring the stockists to sell their product (bagged animal feed) at a price stipulated in the supply agreement. The stockists issued a complaint to the...
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...Olivia Fugate College Writing Competition is Key Although competitive traits are often regarded as a negative qualities in people, they are usually spun in a way that only reveals one side. Being competitive is truly one of the best aspects of a person. Competition can help better yourself, others to better themselves, and even just better everything. Without competitive nature, the world would be dull. There are ways that avoiding our competitive nature can hurt us more than help. A few bi products of harvesting our competitive feelings are as follows: cynicism, gossip, self- denial, jealousy, and ultimately self- hatred. (Psych Alive) Cynicism, or believing that people are motivated by their skeptical interests of themselves, holds individuals to be driven only by solo interests and leaves them with a selfish outlook. Gossip will obviously occur if not actively participating in competition, all that can be done is conversation about how one is better than physically proving it. Self- denial is a possible downfall due to the fact that if someone has never competed to better themselves they may become volatile. You will deny yourself of things and your achievements if you don’t ever strive for them. Jealousy, in agreement with gossip, will lead to self- destruction if you don’t feed your competitive hunger. Lastly, self- hatred. Seems harsh because it’s tough to understand seeing as people think by never comparing ourselves to others they are doing a great deed. It is a common...
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...*** NOT MY ORIGINAL WORK ******* IT IS A COPY FOUND ON INTERNET KNOWLEDGE OBJECTIVES 1. Define competitors, competitive rivalry, competitive behavior, and competitive dynamics. 2. Describe market commonality and resource similarity as the building blocks of a competitor analysis. 3. Explain awareness, motivation, and ability as drivers of competitive behavior. 4. Discuss factors affecting the likelihood a competitor will take competitive actions. 5. Discuss factors affecting the likelihood a competitor will respond to actions taken against it. 6. Explain competitive dynamics in slow-cycle, fast-cycle and standard-cycle markets. CHAPTER OUTLINE Opening Case Competition Between Hewlett-Packard and Dell: The Battle Rages On A MODEL OF COMPETITIVE RIVALRY COMPETITOR ANALYSIS Market Commonality Resource Similarity DRIVERS OF COMPETITIVE ACTIONS AND RESPONSES Strategic Focus Who Will Win the Competitive Battles Between Netflix and Blockbuster? COMPETITIVE RIVALRY Strategic and Tactical Actions Strategic Focus Using Aggressive Pricing as a Tactical Action at Wal-Mart LIKELIHOOD OF ATTACK First-Mover Incentives Organizational Size Quality LIKELIHOOD OF RESPONSE Type of Competitive Action Actor’s Reputation Dependence on the Market Popped the Top? COMPETITIVE DYNAMICS Slow-Cycle Markets Fast-Cycle Markets Standard-Cycle Markets SUMMARY REVIEW QUESTIONS EXPERIENTIAL EXERCISES NOTES LECTURE NOTES Chapter Introduction:...
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...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. Competition can be defined as any impact of one species over another that results in an adverse reaction or impact of that...
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...given way to other identical or similar products for which there is now a strong consumer demand, and a price to pay. Thus, the nature of demand changes constantly for goods and services c. Perceptions in the marketplace. A positive price simply describes how much something costs whereas a normative price describes what something ‘should cost’ based on an individual’s or a group’s opinion. Usually there are consumer expectations that help guide the normative price. For example, how many times have you heard that, ‘my water bill is too high!” This interaction between positive price and normative price is an ongoing phenomenon and of particular interest to marketers who attempt to create and sustain customer satisfaction. d. Competition and Competitors’ pricing strategies Third, if the firm functions in a market where there are many competitors offering similar products, the firm may not have a choice about what level price to seek. thus, we first assess buyers’ perception of how much they would expect to pay for a product or service based on the utility (or usefulness) they would expect to derive from product or service and combine these individual utility functions to create a demand curve for the product in question. The % of a consumer’s income allocated to spending on the good – goods and services that take up a high proportion of a household’s...
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...Competition Law Summaries Chapter 17- Article 102 TFEU- Exclusionary abuses- Non-pricing practices 1. Introduction In this chapter will be cover the extent to which the unilateral acts of dominant firms might infringe Art. 102 TFEU, especially non-pricing practices. This article has been applied to exploitative abuses, to exclusionary practices and to actions that partition the internal market; that the dominant position, the abuse and the effects of the abuse may arise on different markets; that a distinction should be drawn between horizontal and vertical foreclosure of the market; and that some limited defenses based on objective justification and/or economic efficiency are available to dominant undertakings accused of abusing a dominant position. 2. Exclusive Dealing Agreements Definition: It’s an arrangement on the understanding that no other distributor will be choosed or receive supplies in a specific area. This dealings are capable of infringing Art.102. The cases are predominantly concerned with exclusive purchasing obligations. In the case of 102 it is the dominant firm that infringes the competition rules, since 102 applies to a dominant firm’s unilateral act, so that the dominant firm can be fined and sued for damages, as well as being unable to enforce the offending provisions in the agreement. The exclusive purchasing agreements occurred when a customer is required to purchase all or most of particular type of goods or services only from...
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...It seems that where people are, there is bound to be competition. The question is, is competition beneficial toward us? Does competition always bring out the best in people? Although competition does push us to excel, it does not always promise such beneficial results. Competition can be seen in students going through education. It can be seen in sports between teams or between a few people. Competition is almost always seen between companies. Competition is everywhere. It can be harmful but it can also be quite beneficial. The best example one can take is exams. Competition enhances the standards of each person. We look at those who have got higher marks and aim to beat that mark. It brings out the best in students and pushes them to do even better. However it can also discourage people. When someone just cannot cope with the competition and finds themselves failing all the time, he may lose hope in his self causing him to give up altogether. Different people have their own limits of competition. Some people thrive on the competition. It brings out their best potential and they do well even in extreme competitive situations. Why, we regularly call these people, “competitive people”? Some people just cannot deal with any competition at all and it may affect them badly and they may become de-motivated. It all depends on the level of competition each person’s personality can handle. Nowadays, it is a growing trend for teachers to conduct their classes in a competitive...
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...time. Market: Aspartame had a great potential market. |Mkt scale/Ton |US |EU |Canada |Japan |Total | |1982 |220 |30 |100 |5 |370 | |1986 |5100 |430 |120 |40 |5730 | * NutraSweet had a capability of 5,000 tons. (Not including capability from Japanese JV) Competition: NutraSweet (NS) was patent owner of aspartame and market leader of aspartame in US since 1970. NutraSweet monopolized aspartame market in US, European and Canadian in 1986 before HSC entered aspartame market in Europe. NS’s patent protection in Europe would expire in 1987 and 1992 in U.S. (2) Strategy of Holland Sweetener Company (HSC) Vermijs had his expectation based on its own strategy and situation NS faced. HSC had an improve aspartame products with lower produce cost and better performance of stability (supposed it was true.) HSC established Japanese JV to provide cost advantage. HSC started at Europe and Canada, which were not totally monopolized by NS. Also these markets had rigid competitive control to avoid monopoly under competition law. Therefore, Vermijs expected NS would compete price with HSC. -2. Specifically, how should Vermijs assess the relative likelihood of the two scenarios— price war and normal competition—he has in mind? (1) Advantage of NutraSweet from value chain | |NS |HSC | |R&D |Hold the patents |Follower | | |Keep innovation and R&D |Less innovation power | |Sourcing |Strong facility investment in US |JV in Japan | | |Enter global market | | | |Outsource...
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...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. In this Act, unless the context otherwise requires,— (a) "acquisition" means, directly or indirectly, acquiring or agreeing to acquire— (i) (ii) 1 shares, voting rights or assets of any enterprise; or control over management or control over assets...
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...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. To ensure this competitive environment, the EU utilizes...
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...Perfect Competition Perfect competition is a problem that is emerging in a market in which buyers and sellers are informed about all elements of monopoly that are absent and the market price of a commodity is not control by individual buyers and sellers. Perfect competition is simply looked as a market structure where competition is at its greatest possible level. According to Kirzner (2000), “Perfect competition therefore came to mean the situation in markets where each and every participant lacks any power whatever directly to influence product price or product quality”. Perfect competition is used to compare other and real-life market structures. A real life market structure such as agriculture is the industry that closely resembles a perfect competition. The four key characteristics of perfect competition are a large number of small firms, identical products sold by all firms, perfect resource mobility or the freedom of entry into and exit out of the industry, and perfect knowledge of prices and technology. These four characteristics basically describes that a perfectly competitive firm does not have any control over the market. A large number of small firms that produce identical products have a large number of perfect substitutes that exist for the output produced by any given firm. This means the demand curve for a perfectly competitive firm's output is perfectly elastic. Freedom of entry into and exit out of the industry means that capital and other resources are perfectly...
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