Understand how companies influence their environment through Stackelberg market structures in microeconomics.
Extract
[...] Companies can have an impact on their environment. Analysis of the company's environment: most known technique: PEST Analysis: ? takes into account the variables of Policy, Economy, Society and Technology ? analysis framework, simple idea to appreciate the influences of the macroeconomic environment of a company ? depending on the industry The variables of a PEST analysis : ? Policies : ? fiscal policy ; competition policy ? environmental protection ? aid to businesses ? National Trade Barriers ? employment standard ? [...]
[...] its environment and adapts its strategies according to this ? the possible evolutions of its environment to anticipate the strategies it will have to implement The components of the company's environment will depend on each sector of activity of the companies. We retain globally 8 : ? socio-cultural: moral or aesthetic values, norms, lifestyles that influence the economic needs of consumers + values, currents of thought that influence expectations towards the company ? ecological: state and nature of natural resources (climate, soil quality . [...]
[...] In practice, define the relevant market : ? geographic market: place of distribution of the produced good or service ? product market: good or service produced by the company Economic definition of the market: a market can be defined as a set of products presenting between them a strong substitutability from the point of view of demand and supply: substitutability from the point of view of demand when one can use a good substitutably to another substitutability from the point of view of supply when producers can easily produce another good in case of price modification Definition by the European Commission: the relevant market in terms of product includes all products and/or services considered as relatively interchangeable or substitutable by the consumer due to the characteristics of the products, their price and their usual use Market structure: accounts for the intensity of competition on the relevant market. [...]
