Finally a lesson that doesn’t have pages of notes!

2.5.4 Identity laws and regulations adopted in Canada to promote competition among firms.(k) We’ll do this one first because the previous outcome is just too much fun.

Competition Act The Competition Act is Canada’s antitrust legislation. The purpose of this Act is to maintain and encourage fair competition in Canada. It regulates trade and commerce activities and monitors trade practices. For example, mergers and acquisitions that can reduce competition are often subject to review by the Competition Tribunal. The Act may be conveniently divided into three principal areas: criminal offences, civil offences and merger regulation.

Competition Act continued The Competition Bureau is responsible for administration and enforcement of the Competition Act. Its role is to promote and maintain fair competition so that Canadians can benefit from lower prices and product choices.

So, what does the competition act do for you and I as a consumer? This law is awesome! Let’s check it out. bc.nsf/eng/h_00529.html bc.nsf/eng/h_00529.html

2.5.3 Explain ways that firms engage in price and non-price competition. (k) Non-price competition is a marketing strategy "in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship“.

How do firms do this? The firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any other sustainable competitive advantage other than price. It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of low price. Non-price competition typically involves promotional expenditures, (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.

Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price, and avoids the risk of a price war. Although any company can use a non-price competition strategy, it is most common among oligopolies and monopolistic competition, because firms can be extremely competitive.