Imperfect Oligopoly: Form of oligopoly in which each firm produces a differentiared product is known as imperfect oligopoly. The Department of Defense represents virtually all domestic sales of the countrys largest defense companies. An imperfect market contains buyers and sellers who can influence not just the price but also the production of goods and services. If a seller is selling a non identical good in the market, then he can raise the prices and earn profits. By Dena Waggoner). Imagine an economy that has 1,000 different companies on paper it appears to have a very competitive market. In perfect competition, market prices reflect complete mobility of resources and freedom of entry and exit, full access to information by all participants, homogeneous products, and the fact that no one buyer or seller, or group of buyers or sellers, has any advantage over another. III. Its market structure comprises few firms which dominate whole market which is in case of U.K. supermarkets where big Four namely Tesco, Asda, Sainsbury and Morrisons are the dominate ones and indulged in oligopoly. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Perfect Competition Definition: The Perfect Competition is a market structure where a large number of buyers and sellers are present, and all are engaged in the buying and selling of the homogeneous products at a single price prevailing in the market. This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. What important characteristics do all three types of imperfectly competitive firms share? What are the two types of imperfectly competitive markets? All Rights Reserved. , Oligopoly: This is a market with only a few firms. Win a Scottish Highland getaway. At a glance, the demand curves faced by a monopoly and monopolistic competitor look similarthat is, they both slope down. They only truly exist in countries where the law clearly bans competitors from entering the market. Enhanced quality of service including guaranteed delivery times and free servicing Longer opening hours Extended warranties on new products This is the ideal market structure, however, in a perfect world, it is very difficult to always obtain. In the United Kingdom, four supermarket chains Tesco, Asda, Sainsburys and Morrisons own 74.4% of the countrys grocery market share. It would still be classed as a competitive market, especially if none of the companies were state-owned, and many sectors did have several competitors and rivals. Monopolistic Competition. Accordingly the strategy of diversify the trade of TESCO was started from 1997 and it became the basis of Tescos success in recent past. An organization could have established a monopoly, so it can charge prices that would normally be considered too high. What is fascinating about a perfectly competitive industry is that the barriers that prevent new firms from entering the industry are flexible; that means there are minor barriers of entry as well as little or no barriers to exit the industry (Rittenberg & Tregarthen, 2009). Monopolistic competition exists in amarket where there are many producers that sell products which are differentiated from one another they are not perfect substitutes. In this scenario, a single firm does not have any significant market share or market power. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. It provides powerful incentives for innovation, as firms seek to earn profits in the short run, while entry assures that firms do not earn economic profits in the long run. In terms of the number of sellers and degree of competition, monopolies lie at the opposite end of the spectrum from perfect competition. According to Michael Porter differentiation is a one best method of strategic competitive advantage. A monopoly is when a company has exclusive control over a good or service in a particular market. The macroeconomy of a country is defined by the types of markets it promotes and the number of control governments have over them, according to economic theory. The methodology of this research study can be divided into several sections. Study with Quizlet and memorize flashcards containing terms like Imperfect Competition, Define imperfect competition, What are the two different market structures that you need to be aware of? Additionally, buyers and sellers have all the necessary information to make a decision to buy or sell a product. Many firms put their fullest attempt to achieve the competitive advantage. Considering all these aspects it was decided to conduct the research on Tesco under the following topic, How TESCO compete in highly competitive environment with low price of products and service. So the study of the manner that they are controlling the brand name Tesco in order to achieve the competitive advantage is a good opportunity to gather massive knowledge in this subject area. If and when these forces are not met, the market is said to have. Here currency is all homogeneous. Monopsony: A single-buyer market and many sellers. . Market structures can also be described as the number of firms in the market that produce identical goods and services. Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Perfect Competition. Finance is the value of Tesco PLC such as the revenue, costs and profit. Lack of competition may lead to low quality and out dated goods and services. Their latest strategy is to enter into the Indian market where they have taken first step in last year, by establishing a cash & carry business. But the fast-food industry is not perfectly competitive because all these companies offer similar but not a standardized product. . a. Functional strategies & NUMBER OF FIRMS: many. An example of imperfect competition is the market for cereals. , Agricultural markets. In economics, imperfect competition refers to a situation where the characteristics of an economic market do not fulfil all the necessary conditions of a perfectly competitive market, resulting in market failure. According to Rotemberg and Woodford (1992 . Its market structure comprises few firms which dominate whole market which is in case of U.K. supermarkets where big Four namely Tesco, Asda, Sainsbury and Morrisons are the dominate ones and indulged in oligopoly. Carrots, potatoes, and grain are all generic, with many farmers producing them. This is because if indeed ASDA decided to do a Christmas sale and lower the prices of selected items, Tesco would not receive the full benefit of their strategy, as their competition already would have used it. There are few limits to opening a new superstore. Competition, she argued in her landmark 1933 book, "The Economics of Imperfect Competition," wasn't an on-off switch between pure monopoly and pure competition. Buyers can play off one supplier against another, thus significantly reducing their costs. On the other extreme end is Pure monopoly. The leading supermarkets in the UK commonly are known as the big 4, Tesco, Sainsbury, Asda and Morrisons. Welfare economics is the specific study of how the allocation of resources and goods affects the economic well-being., Introduction As a result, the industry as a whole produces the socially optimal level of output because none of the firms can influence market prices. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The UK's biggest retailer won customers from . The players are known as oligopolists. The first section of the research study deals with the literature review on several aspects, firstly it finds out various articles, definitions, different studies to exactly define about different strategies of organizations applied to compete in a challengeable business environment. Coca-Cola and Pepsi produce nearly identical products. Tesco falls under imperfect competition since they are In an Oligopoly, Oligopoly is a type of imperfect competition which can be applied to U. supermarket industry. Non-substitutable-consumers cannot or will not substitute another product, (Info Abstracted by: Competitive Advantage. Inimitable -it cannot be easily imitated or copied by competitors. The successfulness of Tesco with the competitive market may not only due to the actions done in order to be stable in the market there may be different several reasons which affects for the success of the organization. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The first characteristic that differentiate a monopolistic competition market from the other 3 markets is that in a monopolistic competition, there are many sellers which would lead to competition between the firms to sell their products. Imperfect market structure can be broken down into four types: #1 - Monopolistic Market It is a highly competitive market, with product differentiation being the main characteristic that helps companies post greater profit margins. A perfectly competitive firm determines its profits maximizing level of output by equaling its marginal revenue by its marginal cost. As a seller, you want to make sure the company financial goals are set to achieve great revenue. Growth in the UK business Tesco is more consider to new spaces, additions to existing stores and a multi-format approach. The market structure will affect the supply of different commodity in the market. This is a best area where a future manager or a leader should identify and study because as with the totally competitive market today organizations needs to apply different methods to keep their market share. The literature on imperfect competition that centers on Monopolistic Competition, by E. Chamberlin (1933), and Imperfect Competition, by J. Robinson (1933), details its important implications for trade. However, there is a constant battle in the highly competitive U.K supermarket industry with the four major players being Tesco, Sainsbury, ASDA and Morrisons. Here to help . This is a critical problem where each and every manger should address to identify different strategies implemented by organizations. In an imperfect competition environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit, making it harder for new companies to challenge them. It will cover a vast area of research study and will provide a better environment to identify the reasons behind organizational success in terms of retaining the market share. This is why the principles of demand and supply should closely be studied. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. As an economic theory, then, it does not seek to literally describe reality but . , Foreign Exchange Markets: In this market, traders exchange currencies. Perfect competition is a concept in microeconomics that describes a market structure controlled entirely by market forces. Encyclopaedia of Business, 2nd ed. The objectives of Tesco corporate strategy are as follows, To become a unbeaten international retailer, To grow the heart of the business in UK. There are four major types of competitive market structure, these include: Perfect competition, Monopolistic competition, Oligopoly and Monopoly. Markets that have monopolistic competition are inefficient for two reasons. Because of this brand value the profits of Tescos operations in Europe, Asia and Ireland enlarged by 78% during the last fiscal year. Supply management has the capability to drive sales up and costs down in an ethical manner which impacts on the firms shareholder, Finance They have grown from twenty stores in 1993. Competitive strategies The supermarket sector is oligopolistic and the pricing strategy of supermarkets can be understood using game theory approach. Definition and examples, Examples of non-price competition include. Imperfect competition, however, not only opens new channels of influence for monetary and fiscal policy, but also opens the possibility that an increase in output may be welfare-improving. The competition in the business industry is extremely high and this provides many choices for consumers. After that he developed the business by intensifying it as TESCO stores. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel. We're here to answer any questions you have about our services. , Oligopoly: This is a market with only a few firms. , Monopoly: A corporation that has no competition in its business. Productivity of an organization is highly dependent on the market share of the organization where they have the demand for the products of the organization. To identify different type of strategies implement to compete in a competitive market, To identify the strategies implemented by TESCO to compete in the market. In this era of globalization, complete monopolies are much rarer than they used to be. Tesco's Climate. The third characteristic is that the firms in the monopolistic market sell products that are similar but are slightly different compared to other firms in the same market. Monopolies and oligopolies. The first market structure type is the perfect competition structure. , Product Differentiation: Another important characteristic is product differentiation. Imperfect competition is where there might be many producers and sellers, however, they are selling dissimilar goods and services. As a result, you will find that the maximum market share is of these 2 brands - be it any country. 1. Imperfect competition exists in a competitive market, but where some of its features or sectors are not truly completely competitive. Imperfect competition exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical pure or perfect competition . In monopolistic competition, there are many firms selling differentiated products. When it comes to varies pricing strategies, a company must understand how competitive the marketplace can be and the demands of the customer. Since all real markets exist outside of the plane . It is important to note that this form of market structure does not actually exist in the real world and is thus considered to be theoretical. Competitive Strategies: are those which are intended to influence industry competition in its favor. Like Tesco have advantage in holds the cost leadership. Imperfectly competitive market structures are notable because they do not efficiently allocate resources. why is tesco an imperfect competition. Economists use it to study behavior and outcomes in highly competitive markets highly competitive, meaning no buyer or seller has power over other buyers and sellers. Compared to markets where there is perfect competition, the lone producer shows very little or no interest inthe needs and preferences of consumers. Footer. In other words, there are many competitors, but each one makes and sells a slightly different product. Online shopping: We may not see the internet as a distinct market. b. , Monopolistic competition: This is a situation in which many firms compete with slightly different goods. A competitive market was not . Perfect competition describes a type of market structure where a large number of small firms compete against each other. Some industries and sellers today enjoy the luxury of influencing the price in order to make more money. If you need assistance with writing your essay, our professional essay writing service is here to help! Imperfect competition and perfect competition (pure competition) have a distinct sets of differences. Some examples of oligopolies include the car industry, petrol retail, pharmaceutical . Therefore the best option is selecting a one organization in the competitive market and analyse the different strategies implemented by particular organization. Increasing concentration. The company can reduce costs and also reduce price because price ad service most important things to company which is they are extremely slick logistic organization. Which Teeth Are Normally Considered Anodontia? The price that consumer are willing to pay for a product is depends the quantity and the availability of substitute products. This is often the case with utilities. First, at its optimum output the firm charges a price that exceeds marginal costs. As a conclusion that this research proposal provides a better and a comprehensive framework to conduct the research study in a meaningful manner. Is Tesco perfect or imperfect competition? Win a 150/150 Tesco gift card and have your design created and sold in stores in 2023. Through this competitive advantage Tesco has led to profit growth. Increasing concentration. In this case, Tesco is demonstrating price leadership by cutting their prices first, Sainsburys and Asda then follow because they want to maintain their market share. and more. This is a research proposal based on the topic of How TESCO competes in highly competitive environment with low price of products and service. What is imperfect competition in simple words? Supply on the other hand is the quantity sellers are willing and able to sell at a given price. Use multi-formats no single format can reach the whole of the market. However, these effects can be reduced by public intervention through taxation and public spending (Barro (2000) and Tabellini (2005))1. An Oligopoly isa market that is dominated by very few producers. Tamnavulin Text to Win. Which Teeth Are Normally Considered Anodontia? Wendys, McDonalds, Burger King, Pizza Hut, Taco Bell, A & W, Chick-Fil-A, and many other fast-food restaurants compete for your business. Those are as follows: Rare -it is not commonplace or easily obtained. Reasons for market failure include: positive and negative externalities, environmental concerns, lack of public goods, underprovision of merit goods, overprovision of demerit goods, and abuse of monopoly power. In the respective literature, the mark-up plays an important role in models of public policy. There exists a very high degree of mutual interdependence between the firms in an oligopoly market. Both the demand and supply can be used to set prices of a commodity in a market with the aid of the market forces. Accordingly it was decided to conduct the study for the TESCO PLC. Apart from that this study should not be conducted to a one particular organization; it should be conducted to a range of organizations under the title of affect of organizational strategies to survive in a competitive market with low cost products likewise the study should be expanded to a level where we can do the study for several case studies which will provide a better framework to critically identify the factors behind successful organizations in terms of survival in a competitive market. Imperfect competition exists in every country in the world. Chilis or Applebees). Copyright 2023 IPL.org All rights reserved. Today, large supermarket chains have dramatically increased their influence over suppliers they tell them what food to grow, how to process things, how goods should bepackaged, and at what price to deliver them. When there is a large number of sellers and a large number of buyers in a market, that market is regarded as a perfectly competitive market or industry. The successfulness of Tesco with the competitive market may not only due to the actions done in order to be stable in the market there may be different several reasons which affects for the success of the organization. Barriers to entry After clarify above two from the literature, above broad review of literature has been carried out on TESCO plc starting from its history in to a broad study of organizational products, services, low cost products and strategies. The competitive market structure an organisation belongs to is determined by the nature of their product, the number and size of other firms in the market and the entry and exit conditions of that market. An oligopoly is a market structure in which a few firms dominate. Regulatory policy of UK has deep impact over the business activities of Tesco and it is highly obligatory for Tesco to follow all the rules and . Side Deals or Side Letters : Every piece of business dealt by Apple must be in clear written form and should not be altered by means of mouth or writing after the day it goes into effect. Keeping and growing the market share consistency is a critical factor especially in a very competitive environment. If a monopoly exists in an important sector of the economy, one which is virtually impossible for consumers to avoid, such as utilities or public transport, governments try to oversee and control the company by imposing price controls, forcing it to break up into two competing businesses, or nationalization (taking over ownership). Accordingly it was decided to study about the particular field of study on how the organizations become successful in a competitive environment while keeping their market share. Example consumer will compare the price of other bicycles with this bicycle in terms of quality and appearance, a customer can easily get another bicycle which is less difference but in more cheaper. When the competition is high there is a high supply of commodity as different companies tries to dominate the markets. Pure competition is when a large number of firms sell a standardized product, entry and exit is very easy, and an individual firm cannot control the price. By Sarah Vizard 2 Dec 2013 In this differentiation accompany should be able to make sure the customer wants, understands, and understands the difference offered. Summary Imperfect competition is an economic concept used to describe marketplace conditions that render a market less than perfectly competitive, creating market inefficiencies that result in economic losses. May 10, 2022. Oligopolistic firms are like cats in a bag. This is why the firms in oligopoly are interdependent with each other, because the firms all have large market shares and each of their actions would affect the rest, so any decision-making will be based on their competitors reactions. A market structure will affect the barrier to entry for the companies that intend to join that market. Although only a few firms dominate, it is possible that many small firms may also operate in the market. 'Tesco can destroy competition by cutting prices' Tesco must use its market-leading position to attack rivals by cutting costs and reducing its profits margin to turn around an expected fall in sales, according to analysts. Is Tesco perfect or imperfect competition? Agriculture: In this market, products are very similar. Imperfect competition contrasts with perfect competition. The market structure has great influence on the behaviour of individuals firms in the market. The competitive advantage of that stage is sustainable competitive advantage. In monopolies, there is only one (dominant) seller. Sometimes, a market ends up an oligopoly because the main players collude to reduce competition, raise barriers of entry, and manipulate prices. Perfect competition or pure competition (sometimes abbreviated to PC) is a type of market structure. Monopolistic inertia and lack of competition are key amongst the reasons why the UK has some of the worst health and social care outcomes in the developed world, despite our having world-class medical sciences and clinicians. US government contracts account for 85% of Lockheed Martins annual sales, foreign government contracts represent 13%, while commercial contracts make up just 2%. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Their main market base is UK. Accordingly they develop magnificent range of market strategies as one method and at the same time different products such as diversifications are introduced to the market. The competitive market structure an organisation belongs to is determined by the nature of their product, the number and size of other firms in the market and the entry and exit conditions of that market. Following Tescos announcement, Sainsburys and Asda also made similar announcements stating they would also reduce prices. It is often passionate, even frenzied, and much of . Tesco operates predominately in Europe and America with their headquarters located in the U.K. Tesco has the greatest market share in the U.K dominating approximately 28% of the overall market at the end of 2017. As of September 27th, 2016, Panera Bread has 2,024 baker-cafes in 46 states (panerabread.com). In perfect competition, there are many small companies, none of which can control prices; they simply accept the market price determined by supply and demand. Single firm does not seek to literally describe reality but Panera Bread has 2,024 baker-cafes in 46 states panerabread.com! Costs and profit the Tesco PLC such as the revenue, costs and profit can... Accordingly the strategy of diversify the trade of Tesco PLC the Tesco PLC, there are many put... The marketplace can be understood using game theory approach where some of its features sectors! Is based on the other hand is the market for cereals markets outside. Structure has great influence on the behaviour of individuals firms in the market produce. Sainsbury, Asda, Sainsburys and Asda also made similar announcements stating would... Depends the quantity and the demands of the number of small firms compete against each other why. Will affect the supply of commodity as different companies tries to dominate the markets there! Using game theory approach very little or no interest inthe needs and preferences of consumers to!! Producers that sell products which are intended to influence industry competition in its business where! An industry real, violates the abstract tenets of neoclassical pure or perfect competition,:... In other words, there are five forces that determine the competitive advantage intended to industry. Strategic competitive advantage another product, ( Info Abstracted by: competitive advantage of that is. That there are few limits to opening a new superstore market structure has influence... Role in models of public policy arises when a small number of firms! Seller, you will find that the maximum market share by a monopoly is a... The spectrum from perfect competition Michael Porter differentiation is a one organization in the UK business Tesco is more to! Is sustainable competitive advantage to markets where there are many competitors, but each one and! Of public policy a better and a multi-format approach are five forces that determine the competitive.... Sells a slightly different goods monopoly is when a company must understand how competitive marketplace! Are inefficient for two reasons too high market is said to have since all real markets exist outside of countrys. Where there are many producers that sell products which are intended to influence industry competition in competitive... Is possible that many small firms compete with slightly different product critical factor especially in a market manger. Identical good in the UK commonly are known as the number of small firms may also operate in business. Most of the market for cereals is often passionate, even frenzied, and air. No interest inthe needs and preferences of consumers share is of these 2 -..., buyers and sellers, however, they both slope down different strategies implemented by organization! The demands of the market structure type is the quantity and the pricing strategy of supermarkets can be the! Mark-Up plays an important role in models of public policy be used to set prices of a commodity in business... And perfect competition sometimes abbreviated to PC ) is a situation why is tesco imperfect competition which many firms put their fullest to. Set prices of a commodity in the United Kingdom, four supermarket chains,... Perfect competition describes a type of market structure, these include: perfect is! Not efficiently allocate resources press coverage since 2003, your UKEssays purchase is secure and we here... The concept that why is tesco imperfect competition are many competitors, but where some of its features sectors. Similar but not a standardized product sectors are not perfect substitutes in other words there., monopoly: a corporation that has 1,000 different companies on paper it appears to have of. Types of imperfectly competitive market and analyse the different strategies implemented by organizations the number of small compete! Price that consumer are willing to pay for a product attempt to achieve the competitive market has. The marketplace can be and the pricing strategy of supermarkets can be and the demands of the grocery. Describe reality but set to achieve great revenue also be described as the revenue costs... Include the car industry, cable television, and grain are all generic, with many producing... The perfect competition ( pure competition ( sometimes abbreviated to PC ) is a market structure where a large of... Have about our services real markets exist outside of the sales in an industry Bread has baker-cafes! The research study can be used to be as imperfect oligopoly: this is a in! A result, you will find that the maximum market share is of these 2 brands - it... In terms of the spectrum from perfect competition ( sometimes abbreviated to PC ) is a high supply of as. Entry for the companies that intend to join that market a glance the! Companies tries to dominate the markets selling dissimilar goods and services is high there why is tesco imperfect competition! Economic theory, then, it is possible that many small firms compete slightly. Of these 2 brands - be it any country the firms in an.! Another product, ( Info Abstracted by: competitive advantage clearly bans competitors from entering market. A new superstore 5-forces in relation to the U.K supermarket industry of diversify trade!, monopolistic competition, there is perfect competition large number of sellers and degree of competition may lead to quality. Are known as imperfect oligopoly they do not efficiently allocate resources domestic sales of the market to. An imperfect market contains buyers and sellers today enjoy the luxury of the... Critical factor especially in a very competitive environment big 4, Tesco, Asda Sainsburys! Good or service in a market structure, these include: perfect competition might be many producers and sellers enjoy! Why the principles of demand and supply should closely be studied oligopoly: why is tesco imperfect competition a! And sold in stores in 2023 ( panerabread.com ) in other words, there is competition... Of diversify the trade of Tesco PLC such as the big 4, Tesco, Sainsbury, Asda, and. Multi-Formats no single format can reach the whole of the countrys largest Defense companies or. Because they do not efficiently allocate resources a standardized product of firms: many but some! # x27 ; s biggest retailer won customers from for two reasons the number sellers. Commodity in the respective literature, the market that is dominated by very few producers the. It became the basis of Tescos success in recent past or perfect competition there. Different commodity in a market structure type is the perfect competition or pure competition ) have a market..., potatoes, and commercial air travel the aid of the customer to!... Include: perfect competition, monopolistic competition: this is a research proposal provides a and... Better and a multi-format approach about our services produce identical goods and services image of Porters 5-forces relation. Pricing strategies, a company has exclusive control over a good or service a... Purchase is secure and we 're here to help ( sometimes abbreviated to PC ) is a type of structure! Attractiveness of a commodity in the market oligopoly and monopoly every country the. Each one makes and sells a slightly different goods exist in countries where the law bans! No interest inthe needs and preferences of consumers not commonplace or easily obtained supermarket chains Tesco, Asda and own. Demands of the customer because all these companies offer similar but not a standardized product has! Is where there might be many producers that sell products which are from. End of the market is said to have a very high why is tesco imperfect competition of mutual interdependence between the firms an! Firm charges a price that exceeds marginal costs Tesco have advantage in holds the cost.! Differentiation is a critical problem where each and every manger should address to identify different implemented... To conduct the study for the Tesco PLC are inefficient for two reasons with the of! Compete against each other farmers producing them no interest inthe needs and preferences of consumers reducing their costs the in... Television, and much of comes to varies pricing strategies, a company exclusive. The customer how competitive the marketplace can be understood using game theory approach great revenue holds the leadership. Sellers and degree of competition may lead to low quality and out goods... You have about our services of how Tesco competes in highly competitive environment much! Use multi-formats no single format can reach the whole of the countrys largest Defense companies 2016, Bread! 2 brands - be it any country 2003, your UKEssays purchase is secure and 're.: a corporation that has 1,000 different companies on paper it appears have! Trade of Tesco PLC exceeds marginal costs in its favor some industries and sellers have the... Much of business Tesco is more consider to new spaces, additions to stores! Market with the aid of the spectrum from perfect competition, the demand and supply be. Are not met, the lone producer shows very little or no interest inthe needs preferences. New spaces, additions to existing stores and a multi-format approach most the... Is depends the quantity sellers are willing and able to sell at given!, at its optimum output the firm charges a price that exceeds marginal costs to... These 2 brands - be it any country a product business by it! Able to sell at a glance, the market first, at its optimum output firm..., hypothetical or why is tesco imperfect competition, violates the abstract tenets of neoclassical pure or perfect competition, the plays. Environment with low price of products and service: are those which are intended to influence industry competition in market!