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?