Competitive Industries
Definition
Competitive industries are sectors of the economy where multiple firms compete against each other for market share by offering similar products or services.
Analogy
Picture competitive industries as a race with several runners vying for the first-place position. Each runner represents a company trying to outperform its competitors in the marketplace.
Related terms
Monopolistic Competition: A market structure characterized by many sellers offering differentiated products.
Oligopoly: A market structure dominated by a small number of large firms.
Market Share: The portion of total sales within an industry that is captured by one particular company.
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