The document discusses concepts related to perfect competition and competitive strategy. It defines characteristics of perfect competition, including homogeneous goods and free entry/exit from the market. It then poses questions about assessing market attractiveness, competing for higher profits, and resources needed for competition. The document goes on to discuss barriers to entry like economies of scale, excess capacity, and switching costs. It also covers retaliatory barriers, forms of rivalry between firms, and how to analyze competitors by identifying and ranking them.

1. Competitive Environments
Fahim akhtar

2. Perfect Competition Model

3. Perfect Competition Model
• Workers are free from intervention such as formal
regulation and moral persuasions
• There are no barriers to entry into or exit out of the
market.
• Firms produce homogeneous, identical, units of output that
are not branded.
• Each unit of input, such as units of labour, are also
homogeneous.

4. Applying this model one can conclude
• Is that targeted market attractive?
• What is the best way to compete in industry for the
higher profit ship?
• What resources are needed for competitive strategy?

5. Is that targeted market attractive?

6. What is the best way to compete in
industry for the higher profit ship?

7. What resources are needed for
competitive strategy

8. Barriers to entry
• Structural barriers to entry
• Retaliatory barriers to entry

9. Structural barriers to entry
• Economies of scale
• Excess capacity
• Product differentiation
• Capital requirement
• Switching cost
• Distribution channel

10. Economies of scale

11. Excess capacity
• Excess capacity – market demand
• Excess capacity of production create unfavorable
environment for new ventures

12. Product differentiation

13. Capital requirement

14. Switching cost
• Switching costs are the negative costs that a consumer incurs
as a result of changing suppliers, brands or products. Although
most prevalent switching costs are monetary in nature, there
are also psychological, effort- and time-based switching costs.
•

15. Distribution channel

16. Retaliatory barriers to entry
• The size of competitors and their ability to attack.
• The extent and duration of the retaliation.
• The number of competitors who retaliate.
• The ability of competitors to control access to
resources, key suppliers and market channels.

17. Retaliatory barriers to entry
• Price cutting
• Legal challenges to new ventures

18. Rivalry between firms
• Numerous and balanced competitors
• Slow industry growth
• High fixed cost

19. Competitors analysis
• Identifying competitors
• Ranking competitors

20. Identifying competitors
• Take stock of your primary products or services
• Find companies that sell that product or offer that service.
• Identify your competition
• Do word-of-mouth market research
• Do a simple survey
• Determine if your market or industry is growing or
shrinking.
• Investigate your competitors’ sales process.
• Look at their social media

21. Ranking competitors