Competency Convergence

Posted in Marketing and Strategy Terms, Total Reads: 327
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Definition: Competency Convergence

Competency convergence is a business term used to describe a situation in which competition among suppliers of a product or service is so intense i.e. equal-equal situation that for buyers they does not make any differentiation point and buyers can choose any of them.


This situation arises due to following conditions-

• When the market for supplied product is not saturated and the demand is higher than the supply. So tendency to competition is low and the bargaining power through the suppliers are high

• Here price of production is dependent on factors which are similar or closed for different suppliers. So here the offered price by suppliers will be similar or closed.

 

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