Concession

Posted in Marketing and Strategy Terms, Total Reads: 866
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Definition: Concession

A concession is a kind of contract, generally granted by the government that allows certain individuals/ companies to conduct business activities in a certain area.


A concession can be a contract that grants either of the following:

1. Rights

2. Property

3. Land


Moreover a concession can be granted by one of the following entities:

1. Government

2. Local authority

3. Corporation

4. Individual

5. Legal authority


The entity who gives a concession generally charges a minimal fee for the same which may also be taken as a fixed percentage of revenue earned by the entity that gets the concession, especially in private sector.


For example, there can be a short term concession granted to an entity in the form of a promotional space. Say you’re the marketing manager of “!ndia Mobile Network” and you want to enter the telecom industry by giving sim cards away for free. A departmental store or retailer may allow you to put up a stall in front of his shop, given that you give him 3 !ndia sims as the fee.

 

Hence, this concludes the definition of Concession along with its overview.

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