Preview

Factors of Rivlary

Good Essays
Open Document
Open Document
509 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Factors of Rivlary
Several factors usually interact which result in intense rivalry among competitors. Explain. In today’s economy, there is virtually no market that exists that has no competition what so ever. From the foods we eat, to the clothes we wear, to the cars we drive, to the water we drink, every company has some sort of competition. So let us focus on the big picture and zero into this subject. Competition is necessary for two reasons. First is to abolish the ideas of monopolization. Secondly, is due to the brainiac out there who believes that their product/ ideas are better than the existing product. Due to the latter idea, competition is healthy because it gives the consumers options and also the right to have a product that is able to keep up with their daily lifestyles. So when newer companies come out with bigger and better ideas that their predecessors, rivalries build up as the mother company must stay at par to keep themselves in business. Now that we have the big picture for competition, lets zero in why rivalries can exists.
Capital: When people decided to buy a product, one company is a winner and the rest are losers. In essence if I go out and buy a Dell computer, my money ultimately ends up to the manufacturer Dell and Microsoft and not a computer conglomerate like Apple. Therefore my point being is that Dell and Microsoft gets capital that Apple could have gotten if the competition did not exist. Basically it all boils down to who gets the sale.
Ideals: (I do not want to open a can of worms here) Something always boggles me why people pay for water, however since there is a market for it, there are competitors like Coca Cola, Aquafina and hundreds of others. When the concept of bottled water was introduced, there was one company who ingeniously came up with the idea only to have a hundred other companies follow the same logic.
Options: Rivalries usually start to occur when they gain popularity amongst the end consumer. Today’s

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Tucker Essay

    • 330 Words
    • 2 Pages

    Competition is truly important to the United States these days it’s what gives us all a larger variety of goods and which most are sold at a reasonable amount. Also competition allows different people and different companies have different outcomes. This allowing up or downs in economics for United States. Competition might lead a person to become wealthier or poorer.…

    • 330 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Observing the picture number 2 (1st point) is possible to analyze the rivalry among competitors in…

    • 499 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    A healthy rivalry can generate consumer interest for the product and services offered due to the competition between businesses. This usually produces publicity and it can generate a more perceived need or desire. A key element to rise above the competition is to provide high-quality service and putting the consumers’ needs first. Competition can be effectively combated by emphasizing on how different and exclusive the features of the business products and/or services are. By stating how you are different from a widely known competitor, you can often more easily express your differentiation.…

    • 898 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Competition is generally regarded as being positive, bringing benefits in particular to customers. The advantages of competition are based on the fact that, in order to gain market share, firms need to offer the cheapest or the best quality products to customers. This requires them to operate as efficiently as possible, in a cost effective way while at the same time improving the quality of products and services as much as possible. However, competition also has some negative. Where competition is based solely on price, product quality might be sacrificed because resources that are devoted to competing with other firms, such as the huge amounts spent on advertising and packaging, could be directed to producing cheaper or better products. Also, competition between firms means that, inevitably, some businesses will be forced out of the market, with the economic and human consequences of redundancy and unemployment. Finally, the competitive process tends to mean that successful established businesses gradually take over, for example Nestle…

    • 692 Words
    • 3 Pages
    Good Essays
  • Good Essays

    QHT1 task 3

    • 492 Words
    • 2 Pages

    Competition is where the strong will survive and where people will be the best that they can be. A competitive environment feeds into a person’s desire to always want to be the best against the best. This will allow for many new ideas and theories to be shared and created. Competition is what keeps a business alive and fresh because when a company because complacent they tend to become vulnerable and weak and then are easily surpassed or taken over by a competitor (Ryan May).…

    • 492 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Porter Forces over Tyson

    • 565 Words
    • 3 Pages

    This industries is very competitive, this usually means that companies within this industry are likely to suffer lower returns due to the expenses associated with competing. The more competition the more brand loyalty comes into effect. This is when the quality of the product being produced and packaged comes into play.…

    • 565 Words
    • 3 Pages
    Good Essays
  • Good Essays

    International Management

    • 550 Words
    • 3 Pages

    Competition is known as the principle of capitalism. Businesses make the product and consumers purchase based upon other consumers opinions of the products or services, consumers want the best quality and service for their money. If a company makes a…

    • 550 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Competition in most cases is a good thing. Athletes often profit the most from competition because they are forced to give their all on every play. Even a world class athlete, if he has completion will be pushed further and will have to give in to his own agenda (laziness) to remain competitive. Competition in the market place is no different; it combats most company self-interests and instead provokes producers into wealth-creating activities.1 The competitive process I feel also provides an even stronger incentive for producers to operate efficiently and heed the views of consumers.…

    • 400 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Rivalry among competitors refers to the level of competition among existing firms. When there are few businesses selling similar product or service, consumers can easily switch to other competitors that offer lower cost.…

    • 153 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Five Forces Model

    • 2253 Words
    • 10 Pages

    The market structure for example will be a major determinant in the intensity of rivalry. In a monopolistic market for example, where one firm has the total control of the market, quality,…

    • 2253 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    For instance, bottled water companies create jobs, including transportation, manufacture, and marketing. Conversely, tap water also creates jobs, without the waste of natural resources and plastic. It has been stated that the sale of water aids the economy and promotes the marketing of other products, even further improving the economy. However, selling what is free is not the way to help the economy. A business cannot flourish by selling products to the employees. In this way, neither can a country flourish through the sale of bottled water within itself. For a truly better economy, the U.S must reach out to other countries. By abandoning bottled water and drinking tap, an overly sufficient amount of money will be saved to help other, less-fortunate countries. The U.S contributing to the rest of the world in such a way would change other countries’ opinions of America for the better, thus improving world trade. In bottled water’s defense, majority of consumers claim that bottled water tastes infinitely better that tap. However, in a blind taste test conducted by Tom Standage, a mere 1 person correctly identified which of the various samples of water was tap. The apparent bad taste people claim tap water has is likely due to perceptual set, or predisposition. Since consumers think they ‘know’ tap water tastes bad, it tastes bad. Therefore, once the knowledge of which cup holds the tap…

    • 1533 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Two firms will recognize their competitive relationship if they compete in the same markets and develop comparable market personalities. In a competitive situation, a firm has to be motivated to act or react, regardless of its capability (Chen, 2004). Motivation is a necessary condition and prereq for behavior, and is a more direct predictor of interfirm rivalry than is capability (Chen, 2004).…

    • 366 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Porters Five Forces

    • 11070 Words
    • 45 Pages

    IN ESSENCE, the job of the strategist is to understand and cope with competition. Often, however, managers define competition too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry. As different from one another as industries might appear on the surface, the underlying drivers of profitability are the same. The global auto industry, for instance, appears to have nothing in common with the worldwide market for art masterpieces or…

    • 11070 Words
    • 45 Pages
    Powerful Essays
  • Good Essays

    Intensity of rivalry occurs when there is an action and respond made by the firm in the industries. In The Rich case, Niksim was the competitor that just has move to the area. Even so they are the new retail outlet in that area but they have their own strengths that can stick the customers’ eyes towards their product. Their strengths can be seen through their price, customer trust and also the quality of the product. All of this strength is the threats towards The Rich.…

    • 1280 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Competition can help make you grow as we. Compete one-on-one; compete against another company; compete against your own objectives – the more the competition, the potentially better product (you) because of what’s at stake… pride.…

    • 4375 Words
    • 18 Pages
    Good Essays