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Non-price competition

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Two major categories of competition within an industry are Price and Non-Price. While price competition is the more common, many companies resort to non-price competition in their battle for market share and customer dollars. Non-price competition can take many forms depending on the industry, its structure and product. Promotions such as advertising, freebies or give-away’s, location, product differentiation (real or perceived), coupons and bundling of complimentary products are just a few of the examples of this form of competition in the market place. Please refer to Ch. 12, Sec. 1C in the text. Select one industry you are interested in and demonstrate in a 4 - 5 page paper how the existence of non-price competition influences the performance of individual firms operating within that industry. For example, if you choose the brewing industry, you might cite Anheuser-Busch InBev as your central firm. If it is the Tobacco industry, you might cite Altria and its products. For autos, you might center on GM and / or its competitors. In Soft Drinks – Coke or Pepsi; In Footwear, you might choose Nike. The first page of the paper would include an introduction to the industry, its structure (i.e., is it a monopoly, oligopoly or monopolistically competitive market), products, competitors, and the reason why you selected it. Perhaps you work for that industry or you own stock in a specific company and would like to know more about it and its operating environment. Or, you may enjoy a particular company’s product and want to explore their marketing techniques. The bulk of the paper would demonstrate the types of non-price competition that the individual firm and industry have used, both historically and today, and how these methods have influenced product sales of the respective firms. If a particular scheme was unsuccessful (such as Coke vs. Coke Classic), cite the details and explain why, including any long-term repercussions – such as loss of market share – and attempted damage control in order to recoup sales. It is okay to compare one competitor with another, such as Coke vs. Pepsi or GM vs. Ford. The paper should be typed and double-spaced, but have only one double-spacing between paragraphs. Footnotes or references should be utilized, where applicable, and a Bibliography should be attached at the end. If charts are applicable, they should be in an Appendix before the bibliography and will add extra credit to the grade. The appendix and bibliography should not be included in the 4-5 page written work. The paper may exceed 5 pages in length, but will be penalized if shorter than 4 full pages. Internet resources as well as print media may be utilized. Suggested sources include: Advertising Age; Fortune; Business Week; Standard & Poor’s Industry Surveys; Industry Outlook (U.S. Dept. of Commerce); The Wall Street Journal; Annual Reports. Financial resource sites include Annual Reports and Corporate Websites; Yahoo Finance; Hoovers; Wall Street City; AOL Finance; BigCharts.com; and CBS Market Watch.

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