Three aspects of demand conditions in an industry are important for entrepreneurs to
understand: the magnitude of customer demand for products or services, the rate growth of
that demand, and the heterogeneity of that demand across customer segments.
Key traits of Market: number of firms, products similarity, and ease of entry and exit in market.
Number of Seller
Large (large number of small firms)
Homogenous, cannot be distinguishable.
Demand conditions are very good for Aldi. The German discount supermarket ALDI
has steadily grown to 10.3 per cent on 2013 from 2.9 per cent in December 2005,
which is a big rise in the chain. This explains how demand for Aldi has grown.
FACULTY OF LAW AND BUSINESS
School of Business
Melbourne; North Sydney
Semester 2, 2015
ECON600: Managerial Economics in a Global Environment
Credit points: 10
Prerequisites / co-requisites / incompatibles: Nil
It is your responsibility as a