Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Shah Alam Kabir Pramanik on April 01, 2017, 09:12:08 AM
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Industry Concept of Competition: As the market for calculators
expanded, the number of competitors expanded as well and each trying to
capture a particular market segment. It is unlikely that the calculator industry will
ever develop into pure competition, since the trend is toward specialized
products and not toward a generic calculator.
Industries can also be described in terms of entry, mobility, and exit
barriers. If entry barriers are high, then it is difficult and expensive to enter an
industry. If mobility barriers are high, it is difficult to move into more attractive
market segments. If exit barriers are high, then the difficulty of leaving an industry
is an obstacle to companies wishing to pursue entirely new markets.
Cost structure also plays a role in defining industry competition.
Competition will tend to focus on the specific areas in an industry where it is
possible to reduce costs.