EEL416- Competitors

A company selling the same product in the market as you are is:

• A competitor

• Associate

• Non Competitor

Competitors not only make similar products but also sell them at similar prices. True or False

• True

• False

Advantages of Competition are:

• Increases the demand

• Boosts innovation

• Improves Customer Service

• All of the above

Disadvantages of Competitors are:

• Reduces the market share of the business

• Makes business spend unnecessarily

• Customers get confused

• All of the above

Characteristics of a Perfectly Competitive Market

• Firms sell Homogeneous Product.

• No firm has a control over prices. 

• Easy entry and exit for firms. 

• All of the above

A market situation where one company sells heterogeneous goods is called

• Monopoly

• Perfectly Competitive Market

• None of the above

Vendors that sell the same products to the same audience and compete for the same potential market.

• Direct Competitors

• Indirect Comeptitors

• Non Competitors

• Replacement Competitors

Vendors that sell products or services that are not necessarily the same but satisfy the same consumer need.

• Direct Competitors

• Indirect Competitors

• Replacement Competitors

• Non Competitors

Vendors who have the ability to replace the business’ offering altogether by providing a new solution are:

• Direct Competitors

• Indirect Competitors

• Replacement Competitors

• Non Competitors