Advantages And Disadvantages Of Competitive Competition

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Competitive markets means strong rivalry amongst firms or companies which are trying to achieve and outdo each others by increasing their market share, profits and sales by using the methods of marketing mix which includes prices, products, distributions and promotions. It can also be described as a spectrum of a purely monopolistic, in which a company is the sole producer of good and services, this means that a sufficient number of firms or companies are relatively equal to their sizes, which eventually none of the big competitive companies can influence the market in any way. The characteristic of fundamental in competitive market is that the existence of the various number of their buyers and sellers it the market they operate. This will also meant that the vaster the number of buyers and seller that are presence, the lesser the power of bargaining that the buyers and sellers will have. Competitive competition demonstrates their characteristic by having the perfect knowledge that will help minimizing the risk and to limit the role of entrepreneur and also there are no single firms or organization can influence the market price or market conditions and it is said that a single firm is said that it can only be a price taker which it can take the price from the…show more content…
The market leader is the leader of the firms or companies that’s has been leading the market value and customers demand. The market challenger is the rivalry of the market leader, which means the firm or the company are trying to be one of the market leader or lead the market itself. The market follower is the one who follows how the market leader and market challenger runs the market and not challenging the two. A market niche is a market where it focuses only on one main objectives or products not following the market leader and happy where the firm
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