Market Moves
Amazon connects buyers and sellers online. What term describes this physical or virtual space where buyers and sellers interact?
Crocs uses unique colors, collaborations, and Jibbitz to make its shoes stand out from competitors.
Differentiated Products
A new food company spends thousands on safety testing, government paperwork, and required reports.
Compliance Costs
Before making its first car, a company needs an expensive factory, machinery, and specialized equipment.
Infrastructure & Equipment
A customer keeps buying the same brand even when a competitor offers a similar product for less.
Customer Loyalty
As the price of custom sneakers rises, a company becomes willing to produce and sell more pairs.
Supply
Nike wants legal protection for its Swoosh so competitors cannot use it to represent their products.
Trademark
A government gives one company the legal right to be the only provider of a service in a specific area.
Exclusive Franchise
A biotech company spends billions testing and creating prototypes before knowing whether its new product will work.
Research & Development (R&D)
A large company can survive months of losses because it has a huge amount of money saved.
Cash Reserves
A celebrity wears a certain hoodie, and suddenly thousands more customers want to buy it.
Demand
Someone copies a student's original artwork and begins selling it online. What protects the student's original work?
Copyright
A major company signs a contract preventing a supplier from selling to competing businesses.
Exclusive Dealing Agreement
A new sneaker company spends millions on commercials and marketing just to convince customers to try it instead of Nike.
Advertising & Brand Building
A huge company produces millions of products, allowing it to spread production costs over more units.
Economies of Scale
At one price, the number of concert T-shirts customers want to buy equals the number sellers want to sell.
Equilibrium Price
A teenager invents a brand-new type of phone charger and wants exclusive legal rights to the invention.
Patent
A coffee shop gets the best spot directly beside a busy Metro station before its competitors can.
Favorable Geographic Location
A business spends $500,000 on specialized equipment. The business fails, and the money cannot be recovered.
Sunk Costs
An established company keeps its prices just low enough that entering the market wouldn't be profitable for a new competitor.
Limit Pricing
Two restaurants sell similar food, but one consistently outperforms the other because of better service, lower prices, and stronger marketing.
Competitive Advantage
Before legally working in certain professions, a person may need government permission, a permit, or a professional credential.
Licensing and Certification
Your new energy drink is popular, but major stores have full shelves and won't carry it.
Access to Distribution Channels
A company owns its supplier, allowing it to prioritize its own needs and potentially charge competitors more for the same materials.
Vertical Integration
One business produces a unique product or service in a market with no competition.
Monopoly