consumerism and competition

7/31/2019 Consumerism and Competition

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CONSUMERISM AND COMPETITION

Environment for Management


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CONSUMERISM

Consumerism is a social and economic

order that is based on the systematiccreation and fostering of a desire topurchase goods and services in evergreater amounts. The term is oftenassociated with criticisms of consumptionstarting with Torstein Veblen .Veblen'ssubject of examination, the newly emergent

middle class arising at the turn of thetwentieth century, comes to full fruition bythe end of the twentieth century through theprocess of globalization.


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Definition:-

Consumerism is not limited to organized

effort only but, is a social movement

seeking to augment (increase) the rights

and powers of buyers in relation to seller

(Philip Kottler)


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THE EFFECTS OF CONSUMERISM

ON THE ENVIRONMENTDegradation

Pollution


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Competition

Competition is acontest between individuals,groups, animals, etc. for territory, a niche, or alocation of resources. It arises whenever two ormore parties strive for a goal which cannot beshared. Competition occurs naturally between

living organisms which co-exist in the sameenvironment. For example, animals competeover water supplies, food, and mates, etc.Human beings compete for water, food, andmates, though when these needs are met deep

rivalries often arise over the pursuit of wealth,prestige, and fame. Business is often associatedwith competition as most companies are incompetition with at least one other firm over thesame group of customers.


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NEGATIVE EFFECTCS OFCOMPETITION Customers: in any market you have a limited

number of customers that businesses arecompeting for, so the more businesses thereare the lesser your market share.

Resources: Also limited in supply,resources like skilled employees, rawmaterials and other resources that you mightneed will become more expensive the morecompetition you have. You will be competingto acquire those limited resources making themore and more expensive


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THE SOLUTION FORCOMPETITION 1)product distinction: make your product

distinct from your competitors so that toappeal to a certain market segment whereyou think there are unsatisfied demands.

2) Market or industry access: choose amarket that is not saturated yet or industrywith a high entry barriers that you can meet(like banking).3) Produce cheaper: by making you internalprocesses more efficient , you will be able tobeat your competition by lowering your price(but that is only temporary)


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THANKU.

consumerism and competition

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