MGMA01H3 Lecture Notes - Lecture 4: Monopolistic Competition, Cash Cow, Bargaining Power
Document Summary
Market is defined by how much we sell and how much our competitors sell. The market can be structured as pure competition, monopolistic competition, oligopoly, and monopoly. With monopolistic competition, firms have to stress the difference between them and the competitor. Oligopoly has small amount of firms, and they have a price agreed (similar prices to avoid loss of profit) Monopoly is the only producer of a good/service is not able to be substituted, marketing is not as important. If its internal and favourable (strength), internal and unfavourable (weakness), external and favourable (opportunities), and external and unfavourable (threats) If it is internal (controllable), if its external (not controllable) Usually things that are unfavourable and external involve competitors. Relative market share = your market share/biggest (next biggest) market share (10 percent is a benchmark for market share) Harvest is to scale back operations, while divest is to sell off the business.
