In the modern business world, We can see several forms of competition. It is known as the Classification of market structure. such as:
- Product competition: It refers to competition between alternative or substitute products such as Coca-Cola can compete with Pepsi, Fanta etc.
- Firm competition: firms are competing with local sellers of similar products.
- Brand competition: Brands are competing with rivalry brands within product quality, features, images, class. For example, Adidas competes with Nike.
- Interregional competition: It refers to competition from one region to another as like California & Florida oranges.
- International competition: International competition takes place between other nations.
- Institutional competition: It competes with different markets institution like the market grocery store, fast –food, restaurants etc.
- Functional competition: it arises when two or more institution determines they will perform for particular marketing functions such as financing, transportation & other services.
There are to other ways to view the food & agricultural market competition. They are –
- Horizontal competition: It involves competition between firms at similar market levels as suppliers, wholesalers, retailers.
- Vertical competition: It involves the bargaining relationship between buyers and sellers. It also distinguishes between price & non-price competition which influence the 4P’s of marketing strategy.
Mostly, the environment and its market structure influenced firms behavior. Through which it operates its business. Market structures are determined by the number of firms, their market offerings, and their pricing and consumers behavior. Although, Market structures are divided into 6 competitions.
- Monopoly competition: The monopoly market is the opposite of perfect competition. In this market, there is only one seller but numerous numbers of buyers. Only one seller can enjoy high price. This is the positive effect for the seller but negative for buyers and buyers can get radical innovation from this market.
- Duopoly competition: In the market competition, only two players controlling the whole market share & it have numerous buyers. For example Coca-Cola and PepsiCo.
- Perfect competition: Marketing experts refer to this is the pure or automistic competition. There are some following conditions. This is fulfilled in the perfect competition market.
- Many sellers
- Many buyers
- No product differentiation
- Firms can freely enter or leave the market
- Both buyers and sellers have equal knowledge about the price
- the worldwide market sets Prices
- Free from restriction
In this competition, an individual producer can sell all of it’s on the market.
- Monopolistic competition: This competition lies between perfect competition & oligopoly competition. There are so many buyers and sellers. The large sellers have differentiated products to the consumer’s needs.
- Oligopoly competition: In an oligopoly market, there are few sellers but many buyers. The large firms are controlling him sales in this competition. That means the leading firms can influence the market price
- Monopsony competition: here, exist many sellers but only one buyer. For example, our government making metro rail for the people. In making metro rail, there are so many sellers that they are proving different needed materials like cement, iron, steel etc.