Competition
Competition: The struggle among companies for scarce
customer dollars
Basic Understanding is that those organizations with
the best products at the best price will stay in business
Factors That Influence Demand for a
Sports or Entertainment event
Price of the tickets
How often the event takes place
How much promotion is used
People involved in event (key
players/performers)
Types of Competition
Price Competition:
when a business uses the
price of their product to
compete in the
marketplace
Non-Price Competition:
when a business uses
other product features:
Quality
image or service
Direct Competition
Direct Competition: Business offers similar-type
products
directly competes for a consumer’s dollar
Example:
Indirect Competition
Indirect Competition: Business offers different types
of products
competes against each other for a consumer’s dollar
Example:
Monopoly
Monopoly: a situation in which there is only one
company
One supplier of goods/services
No substitute products available
No competition
No price limits
Effect of Competition: Producers
Develop new products
Improve product quality
Bring prices closer to production costs
less profit is made per unit
Operate more efficiently
make as much profit per unit
Provide better services
customers are happy and return
Provide wider selections
Effects of Competition: Consumers
Lower prices
Better quality products
New and improved products
Choice of where to buy
Wider product selection
More and better customer services
Recreation Competition
Class Activity
Identify 2 examples of Direct Competition & explain why
i.e. Beachbody offers T25 & Insanity
Identify 2 examples of Indirect Competition & explain why
i.e. Nike (variety of different products)
Answer the following:
1.
2.
3.
4.
5.
6.
What types of direct and indirect competition exist in the SER
industries?
How does price competition impact the SER industries?
How does non-price competition impact the SER industries?
Why is competition good for SER consumers?
If a business does not compete with price, what are some other
ways it could compete?
Why should competition research be an ongoing process for SER
industries?
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