Competitive Environment - Essay Example

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The author of the essay "Competitive Environment" states that SCP Model =standing of industry sector = structure, conduct and performance of the firms that comprise it at a given point. Structure determinants= Number of Competing Firms; Homogeneity of Products, Cost of Entry and Exit…
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Competitive Environment
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Bulk of supply lines/ consumers connected with British Gas or Transco- dominating both pricing and supply. Six big gas and electricity companies dominate the energy sector (Simmonds, 2000, 7).
Price rise for year = 25% by British Gas. 7% increase 8 months ago + 18 and 16 percent raise now, prompting Energy Minister to press for change, inviting smaller and alternate energy suppliers to break the dominance of big energy giants. BG cites a 30% rise in wholesale costs, increased demand in Asia, political turmoil in Africa as the cause of variations in global supply and pricing.
SSE called off door to door selling campaign. The process is outdated and costly. Getting and listening to consumer opinions via social networks, talk-shows and forums is need of the hour, many would switch to cheaper suppliers. Read More
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