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
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
“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
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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