Competition Score
Evidence (Images, Statistical Data,
Market Characteristics
The degree of competition in the
market (Try to select three
radically different markets)
The extent to which the product
in a market is unique or
differentiated from other
products
The freedom with which
businesses can enter or
leave/exit the market
The degree to which buyers and
sellers possess information
about the products for sale
Market Characteristics
The degree of competition in the
market (Try to select three
radically different markets)
The extent to which the product
in a market is unique or
differentiated from other
products
The freedom with which
businesses can enter or
leave/exit the market
The degree to which buyers and
sellers possess information
about the products for sale
(1 = Very Low, 5 =
Quotes, personal observations)
Very High)
Within the US, there are 6 major
labels. This is major, they are a
large portion of the market. But the
5
presence of small labels is also
there. There are also indie artists,
creating more competition.
Music is created at one’s will and
5 new genres and definitions of
music are consistently appearing.
Artists can come and go as they
please, especially when they are
not affiliated with a label. Although
5
the case may be different with
labelled artists, it is mostly the
same.
Artists and labels possess
information about their products
because they’re the ones
producing the products. Buyers
5
know information about the
product because they can read
about whatever product is being
distributed.
Competition Score
Evidence (Images, Statistical Data,
(1 = Very Low, 5 =
Quotes, personal observations)
Very High)
Toys are a competitive market
because of the many large name
competitors in the market. The
market is not dominated by a few
5 major producers. If one who was
familiar with the industry was
asked the question of how many
toy companies they could name,
there would be several.
Toys must be unique in order to
drag in consumer attention. If toys
5
aren’t unique then no one would
bother paying attention to them.
Toys can often be a one hit
wonder, which allows for easy exit,
5 also with low barriers of entry.
Meaning it is a very accessible
industry.
Toys are a very accessible product,
leading to people having easy
5
access to information about the
products at hand.
For EACH of the sub-markets that you’ve analysed, respond to the following
questions:

1. How do the firms within the market compete against one another in terms of
price and/or product?
Within the music market, labels and independent artists compete against each other
by relying on streaming algorithms, on platforms such as Spotify and YouTube. They
want to rely on streaming platforms because it earns them much more money than if
they were to compete through physical album sales. Physical albums also cost
money to produce, making streaming all the more profitable service.
2. With multiple sellers to choose from, how does the buyer decide which seller
to purchase from?
Instead of choosing who to buy physical albums from, most people tend to prefer
choosing a certain streaming instead of physical albums. Two companies which
caught onto streaming very quickly are Apple and Spotify. Tidal is another streaming
service which was founded by Jay-Zee, he tried to help Tidal gain a larger following
by having early releases. Bandcamp and Soundcloud have also gained a following
by providing up and coming indie artists a chance to thrive in an ever growing
industry.
3. What are the advantages and disadvantages of having multiple sellers to
choose from all available online?
Advantages: Creates competition, wider range of choices for consumers
Disadvantage: Exclusives, Ads, Fluidity of service