TECHNOLOGY INDUSTRY

Technology Industry

Technology Industry

Define the concept, of competition as it relates to technology companies. What are fundamentally necessary companies? Explain the concept of competitive advantage.

The Concept of Competition in technology Companies

The competition is that condition in which more firms compete on the same market, economic theory as understood in the meeting ideal between supply and demand, producing the same goods or services (supply) that satisfy a number of buyers (demand). The competition protected by the rules Antitrust and realized when the demand and supply are very elastic so that the price of goods or services tends to approach the marginal cost (Armstrong, Kesten, 2007).

In truth, there are different types or degrees of competition. For perfect competition means an ideal condition of the market in which competition between firm's leads to a drop in the purchase price equal to marginal cost. Then in perfect competition that occurs: CMA = P (where P = price = marginal cost and CMA). The model of perfect competition disproved, and today considered a purely utopian, but appears concretely realizable imperfect competition (so-called "reasonable competition"), i.e. in which the price falls to marginal cost, without being equivalent to it (Armstrong, Kesten, 2007).

Fundamental Necessity

In terms of the technology companies, the competition exists to advance more than their competitors in terms of the technology that they have and are producing. In this globalised world, people have many options when buying a product or a community. Therefore, it becomes increasingly important for each company operating in this globalised world to produce and offer better quality products to the customers than their competitors (Sahney, Benton, et al, 2010).

Competitive Advantage

Competitive advantage is what allows one organization to outperform the competition. It is this different from the key success factor that is common to all firms in the market. It called sustainable when ...