Economics Competitive Strategies

A market structure where all products are identical and easily substitutable, and numerous buyers and sellers exist with no single entity controlling the market price.

The practice of charging different prices for the same product or service to different customers based on their willingness to pay.

Durable goods create ongoing costs (maintenance, etc.) that incentivize customers to stay with a specific supplier.

Negotiate contracts with flexible terms and multiple options to easily switch suppliers.

A basic or less expensive version of a product, often targeting price-sensitive customers.

A market where many buyers and sellers exist, products are identical, and firms have no control over price.

Setting different prices for the same goods based on customer segments.

The situation where a customer is incentivized to stay with a particular supplier or product due to the costs of changing.

Negotiating flexible contracts with multiple options to lower the cost of switching suppliers.

Pricing a product based on its value proposition to the customer.

A product with fewer features at a lower price.

The way a market is organized.

Identical products.

Costs associated with altering choices or behaviours.

Obstacles that prevent new entrants into a market.

Lower costs per unit associated with increasing production.

Products with a long lifespan that require ongoing costs like maintenance or consumables.

Negotiating flexible contracts with multiple options to minimize the cost of switching suppliers.

Negotiating contracts with terms that allow for changes or adjustments based on your needs.

Having the choice to select from different contract options based on your budget and preferences.

Products designed to last a long time, like a car or appliance, contributing to customer lock-in.

Perfect competition is characterized by a large number of buyers and sellers, identical products, free entry and exit, complete information, and no control over price. It's a theoretical ideal, not often found in real life.

Price discrimination occurs when a company charges different prices for the same product to different customers based on their willingness to pay.