Kilpailualue

Kilpailualue, often translated as "market area" or "competitive area," is a concept used in economics and business to describe a geographical region within which businesses compete for customers. The term was popularized by Michael E. Porter, an American business professor, in his 1979 book "How Competitive Forces Shape Strategy."

A kilpailualue is defined by the range within which a business can effectively compete for customers. It is influenced by various factors, including the availability of similar products or services, the ease of entry into the market, and the regulatory environment. Businesses within the same kilpailualue face similar competitive pressures and challenges, such as price wars, product differentiation, and branding efforts.

Understanding kilpailualue is crucial for businesses as it helps them identify their target market, assess their competitive position, and develop strategies to gain a competitive advantage. It also enables businesses to make informed decisions about expansion, diversification, and market entry.

There are different types of kilpailualue, including local, regional, national, and global. Local kilpailualue refers to a small geographical area, such as a city or a town, while a global kilpailualue encompasses the entire world. Regional kilpailualue falls between these two extremes, covering a larger area than a local one but smaller than a global one.

In summary, kilpailualue is a vital concept in economics and business that helps businesses understand their competitive environment and develop effective strategies to succeed in the market.