Lecture notes, cheat sheets
Competition. Forms and methods of competition (the most important) Directory / Lecture notes, cheat sheets Table of contents (expand) 2. Forms and methods of competition There are three forms of competition: 1) functional; 2) specific (personal); 3) subject. Functional competition - arises because any need can be satisfied in various ways. All products that provide such satisfaction are functional competitors. Functional competition must be taken into account even if the firm is a manufacturer of a truly unique product. Species (personal) competition - i.e. there are goods intended for the same purpose, but differing in some important parameter (passenger 5-seater cars of the same class, but with engines of different power). Subject competition - the result of the fact that firms produce, in fact, identical goods that differ only in workmanship or even the same quality. Such competition is sometimes referred to as intercompany competition. It is customary to divide competition according to its methods into price and non-price, or competition based on price and competition based on quality (use value): Competition methods: 1) based on the criterion of improving the quality of goods (non-price); 2) on the basis of the criterion of improving the quality of service of the goods; 3) on the basis of price reduction (price); 4) on the basis of reducing the operating costs of the consumer; 5) on the basis of improving the quality of management; 6) based on the use of all competitive advantages of the object and subject (integral). Price competition. Pricing methods are used to penetrate markets with new products, as well as to strengthen positions in the event of a sudden exacerbation of the sales problem. With direct price competition firms publicize the price cuts of their products on the market. With hidden price competition firms introduce a new product with improved consumer properties, but raise the price disproportionately. Non-price competition. Highlights higher reliability than competitors, lower “consumption price,” more modern design, etc. The strongest weapon of non-price competition is advertising. Non-price methods also include the provision of a large range of services (including staff training), the offset of old delivered goods as a down payment for a new one, the supply of equipment no longer on a “turnkey” basis, but on the terms of “finished products in hand”. Illegal methods of non-price competition include: 1) industrial espionage; 2) enticing specialists who own trade secrets; 3) the release of goods that outwardly do not differ from original products, but are significantly worse in quality. Author: Ilyina V.N. << Back: Concept, main types of competition >> Forward: Competition by degree of intensity We recommend interesting articles Section Lecture notes, cheat sheets: ▪ Anesthesiology and resuscitation. Crib ▪ Social Pedagogy. Lecture notes See other articles Section Lecture notes, cheat sheets. Read and write useful comments on this article. Latest news of science and technology, new electronics: The existence of an entropy rule for quantum entanglement has been proven
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