Firm Compete

In a Competitive market firms will compete with each other to produce and supply the market with their good or service to achiee a number of objectives These are:
1 To Increase Customer Base : Firms will compete with each other on prices, product quality and through promotional strategies to increase the number of consumers buying their products.

Price

Price

2 To Increase Sales: Firms will not ony seek to increase the number of consumers buying their roducts but will also hope that existing consumers will buy more
3 To expand market share: The market share of firm can be calculated as it proportion of total volume sold or total sales ravenues

 

Revanue

Revanue

revenue (net sales) is the income that a company receives from its normal business activities, usually from the sale of goods and services to customers” – Wikipedia
4 To Achieve product superiority: This has two meanings.On One hand it refers to making a roduct that is clearly better than rival products for reason o prestige and profit
5 To Enchance Image: firms wil also compete on image. Consumers’ Perceptions of an organization will tend to be reflected in sales.

Consumers

Consumers

6 To maximize profits: Utimately the achievement of the above objectives of competition should help increase total profits.

 

Sumber ;

1. Google Pict. Price (Accsess on September 26,2015)

2. Google Pict. Revanue (Accsess on September 26,2015)

3. Google Pict. Consumers (Accsess on September 26,2015)

4. Dan Moynihan & Brian Titey. (2015). Economics, A Complete Course for IGCSE and O Level: University of Cambridge International Examination

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Dan Moynihan & Brian Titey. (2015). Economics; A Complete Course for IGCSE and O Leel. 2015. hlm 135

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