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.
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
“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.
6 To maximize profits: Utimately the achievement of the above objectives of competition should help increase total profits.
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
Dan Moynihan & Brian Titey. (2015). Economics; A Complete Course for IGCSE and O Leel. 2015. hlm 135