market power
Ability to dictate
Market power is a firm's ability to influence prices rather than accept what the market dictates.
A company with market power can raise prices without losing all its customers to competitors.
Monopolies have the most market power; companies in highly competitive industries have little or none.
The tech giant's market power allowed it to set terms for the entire industry.
One seller, no substitutes
- oligopolyFew firms dominate market
- duopolyTwo-seller market structure
- hegemonyDominant group's control
- controlAuthority to direct
supremacy · leverage · clout · barrier to entry · predatory pricing · cornering · cartel · collusion
Ongoing contest between opponents
- competitorsThose seeking same goal
- price warsCompeting through lower costs
- differentiationRecognizing meaningful differences
- brand loyaltyHabitual preference for one company
consumer choice · perfect competition · supply and demand · innovation · niche · contestability · competitive advantage · disruptors
Advocating to decision-makers
- negotiationDiscussion seeking mutual accord
- leverageBorrowed capital for amplified returns
- trade associationsGroups promoting shared commercial interests
- price settingDetermining sale amounts
contract terms · industry standards · gatekeeping · exclusivity · procurement · monopsony · collective bargaining
monopoly
One seller, no substitutes
- oligopolyFew firms dominate market
- duopolyTwo-seller market structure
- hegemonyDominant group's control
control · supremacy · leverage · clout · barrier to entry · predatory pricing · cornering · cartel · collusion · antitrust
rivalry
Ongoing contest between opponents
- competitorsThose seeking same goal
- price warsCompeting through lower costs
- differentiationRecognizing meaningful differences
brand loyalty · consumer choice · perfect competition · supply and demand · innovation · niche · contestability · competitive advantage · disruptors · incumbents
lobbying
Advocating to decision-makers
- negotiationDiscussion seeking mutual accord
- leverageBorrowed capital for amplified returns
- trade associationsGroups promoting shared commercial interests
price setting · contract terms · industry standards · gatekeeping · exclusivity · procurement · monopsony · collective bargaining
- market economicsmonopoly, oligopoly, perfect competition, duopoly, monopsony
- economic problemsrecession, inflation, deflation, stagflation, hyperinflation
- monopoliesmonopoly, Standard Oil, AT&T, De Beers, Ma Bell
- monopolymonopoly, monopolization, dominance, antitrust, sole supplier
- market distortionprice fixing, price control, monopoly, cartel, tariff
- trade regulationantitrust, fair competition, trade practices, monopoly, monopolies
market powerperfect competition
Frictionless market ideal
competitive market · price competition · free competition · free market · commoditization
power, market, powerful, marketing, supermarket, markets, marketplace, marketer, marketed