Competition In The Real World And Economic Analysis

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Competition In The Real World And Economic Analysis

  1. 1. Managerial Economics<br />Competition in the Real World & Economic analysis <br />PRESENTED BY, <br /> GAURAV H. NANJANI<br /> PGDBM. BATCH 09-11<br /> RIZVI MANAGEMENT INSTITUTE.<br />BANDRA (w) MUMBAI<br />
  2. 2. INTRODUCTION<br />Competition…<br />Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services.<br />Definition by Merriam -Webster …<br />Competition is seen as a state which produces gains for the whole economy, through promoting consumer sovereignty.<br />
  3. 3. Competition in the Real World<br />Economics is a social science.<br />There are various kind of competition existing in the economy i.e. Pure, Perfect, Monopoly and Oligopoly.<br />It is a fight between the forces of monopolisation and the forces of competition.<br />
  4. 4. Example Health Care Industry <br />Health care is on a collision course with patient needs and economic reality. Without significant changes, the scale of the problem will only get worse<br />The most pressing task for leaders in health care is to create a new and better structure<br />
  5. 5. Economics Analysis<br />Systematic approach to determine the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints. It takes into account the opportunity costs of resources employed and attempts to measure in monetary terms the private and social costs and benefits of a project to the community or economy.<br />
  6. 6. Michael Porter&apos;s Five Forces<br />A framework for the industry analysis and business strategy development <br />It determines the competitive intensity and attractiveness of a market.<br />According to Porter, the five forces model should be used at the industry level; and not at the industry group or industry sector level<br />E.g. The Airline Industry.<br />
  7. 7.
  8. 8. Case Study<br />BACKGROUD<br />Excellent Ltd. is a company which into existence in 1996.<br />The product manufactured by Excellent is isocyanides which is an imported Raw material.<br />Excellent Ltd. at the beginning adopted an focused approach with differentiation strategy (quality).<br />
  9. 9. Cont….<br />In 1998 as a part of its corporate level strategy it went for a vertical and concentric diversification.<br />It went into technical collaboration with Germany Ricardo Ltd. to manufacture furniture.<br />In 1999 the company entered into Bus-seat sector.<br />
  10. 10. Problems<br />Improper strategic planning.<br />Lack of proper Market Research.<br />Over dependence on imported Raw – Material<br />They could not even tap even the private fleet owners since they had a sizeable market.<br />
  11. 11. Solution<br />According to Michael Porter’s Five Forces Model.<br />
  12. 12. THANK YOU!!!<br />

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