Concentration
Concentration refers to the extent to which industry sales are dominated by only a few firms. In a highly concentrated industry the intensity of competition declines over time. High concentration serves as a barrier to entry into an industry because it enables the firms that hold large market shares to achieve significant economies of scale and thus, to lower their prices to stymie attempts of new firms to enter the market.
Webster Dictionary Meaning
1. Concentration
- The act or process of concentrating; the process of
becoming concentrated, or the state of being concentrated;
concentration.- The act or process of reducing the volume of a liquid, as by evaporation.
- The act or process of removing the dress of ore and of reducing the valuable part to smaller compass, as by currents of air or water.
Category: Management & Organization Studies
Previous: ← Industry structure
Next: Barriers to Entry →
More from this Section
- Operations management
Operations management, which the term refers to the transformation process that converts ... - Strategic thrusts
Strategic thrusts provide managers with information that helps them determine whether ... - Benchmarking
Benchmarking is an organized method for collecting data that can be used to improved organizational ... - Formality of strategic management
The formality of strategic management system varies widely among companies. Formality ... - Foreign Branching
A foreign branch is an extension of the company in its foreign market. ...