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Competitve envt_Unit 3.pptx
- 1. The most certainway to succeed is always to try just one more time.
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- 3. • A competitiveenvironment is the dynamic external system in which a business competes and functions. • The more sellers of a similar product or service, the more competitive the environment
- 4. Types • Direct Competitors •Indirect Competitors • Global Competitors
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- 8. Study of CompetitiveEnvironment • According to Michael Porter’s five forces model, the competitive environment of the industries can be analyzed. These five forces are as follows: – Rivalry among existing firms – Threat of new entrants – Threat of substitutes – Bargaining power of suppliers – Bargaining power of Buyers
- 9. Unfair Trade Practices •An unfair trade practice refers to that malpractice of a trader that is unethical or fraudulent. These practices cause an inconvenience or grievance to consumers.
- 10. Unfair Trade Practices •An unfair trade practice is defined under Section 2(1)(r) of the Consumer Protection Act, 1986. According to this definition, it is a trade practice carried out for the promotion of sale. It is the distribution or utilisation of any good or service by adopting a deceptive method or practice.
- 11. Unfair Trade Practices •The following practices fall under unfair trade practice: 1. An oral or written statement or visible representation that: – Falsely represents a good or service to be of a particular standard, quality, grade and so on. – Falsely represents any re-built, second-hand, reconditioned, renovated or old goods as new. – Represents that a good or service has sponsorship, approval, uses, benefits and so on which they do not have. The same could apply to the seller or service provider. – Makes a misleading or false representation regarding the need and usefulness of any good or service.
- 12. Unfair Trade Practices –Provides to the public any warranty or guarantee of the performance of the length of the life of the product. A service can be continued till deemed satisfactory. – Gives a misleading image of the good, service or trade like the price of the product. For the above clauses, any statement made via expression by sellers on the wrapper or container of the item can qualify for unfair trade practice. The information of the product is also placed inside the item, attached to the product, or accompanying it. 2. An advertisement published in any newspaper or other means of communication to the general public may also result in unfair trade practice if the price communicated is misleading or a bargain price. This means that an unfair trade practice would be when a rational individual on reading, hearing or seeing the advertisement would think to be a bargain price as compared to the product’s ordinary sale price.
- 13. Unfair Trade Practices •Wrongful or deceitful permissions or expressions like • Allowing the sale of products, having the knowledge or reason to believe that the product is not up to the standards of a competent authority. This could be in terms of design, contents, packaging, etc. • Permitting the hoarding or destruction of products with the intention of raising the prices of the goods.
- 14. Examples • A dresshas been used for 2 months and is now being sold by a seller as a new dress. • The battery of a mobile phone is guaranteed to work well for one year but wears away in a month. • A geyser that is not ISI approved has an ISI mark. • A table of Rs. 500 is sold online with Rs. 600 delivery charge, but the good is claimed by the seller to be free of cost.