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A decrease in competition within an industry often results in what?
Wiki User
∙ 9y ago
A decrease in competition within an industry often results in one company holding a significant amount of economic power. For example, Comcast lacks competition and can therefore charge a lot for their service.
Wiki User
∙ 9y ago
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How do the Five Forces of Competition in an industry affect its profit potential?
The five forces of competition (the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and the rivalry among competing firms) jointly determine the profitability of an industry due to the way they shape the prices which can be charged, the costs which can be borne, and the investment require to compete within the industry. Leadership will use the five forces framework to determine the competitive structure of an industry. The risk of entry by competitors increases the industry's capacity, starts a greater competition for market share, and generally lowers current pricing. Extreme rivalry among competing firms poses a strong threat to profitability to all firms within the industry. The bargaining power of buyers can reduce the profits within an industry by lower the prices and increasing the costs due to purchasing power (large quantity purchasers can drive down prices at a firm -- or the firm risks losing these large quantity sales to a competitor). On the other side of buyers, the bargaining power of suppliers can reduce a firm's profitability by increasing costs to the firm (or firms if the supplier provides multiple firms within an industry). Lastly, the threat of substitute products is a real threat to profits in that a large number of close substitutes for any product greatly increases competition in pricing and in turn drives profits down. Cheers! Mike H.
Is Walmart oligopoly?
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What is intra-type competition?
"Intra" suggests competition between teams or individuals within the same school, company, or other organization.
What relationships exists when the available resources within an environment are limited?
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Why is recycling important within the textiles industry?
cus
Importance of quantitative techniques in business?
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Immediate industry and competitive environments?
The immediate industry includes the competitive environment for business. It includes all the competition within the industry and governmental agencies regulating the business.
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An increase in the activity level within the relevant range results in?
A decrease in fixed cost per unit
What is an industry in which there are many competitors?
The insurance industry is one example of an industry with many competitors. Many companies are constantly vying for clients, and even sales personnel within the same company are at constant competition to hit quotas.
How does serotonin receptor down-regulation have an antidepressant effect if it results in a decrease in post-synaptic neuron activation?
The serotonin receptor down-regulation has an antidepressant effect if it results in a decrease in post-synaptic neuron activation by activation of the 5-HT receptors within the rostral ventrolateral medulla.
What market is pure competition?
Pure Competition is a market situation where there is a large number of independent sellers offering identical products.Pure competition is a term for an industry where competition isstagnant and relatively non competitive. Companies within the pure competition category have little control of price or distribution of product. Advertising, market research, and product development play a very little role in these companies/industries.
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Training Within Industry was created in 1940.
When did Training Within Industry end?
Training Within Industry ended in 1945.
What is intra competition?
Did you mean intraspecific competition? If that is the case, it is competition within a species. This is contrary to interspecific competition which is competition between different species. Hope that helps. answ2 The prefix Inter means 'between', the prefix Intra means 'within'.
