1. Competition

2. 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

3. 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)

4. 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

5. Direct Competition
Direct Competition: Business offers similar-type products
directly competes for a consumer’s dollar
Example:

6. Indirect Competition
Indirect Competition: Business offers different types of products
competes against each other for a consumer’s dollar
Example:

7. 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

8. 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

9. 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

10. Recreation Competition

11. 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:
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?