AGGREGATING COMPETITIVE BEHAVIOR IN THE FOOD INDUSTRY

The inclusion of the above indices into one competitive rating index gives us a tool which would allow economists to study the relative position of each firm hi a national, regional or local environment. The type of competition can be classified. The stages that various markets pass through as markets develop in their use of price and non-price competition can be reviewed. Weighted indices could also be evaluated, i.e., if an index of advertising and promotion were included, it would be possible to weight this index by market share to gauge the possible impact on competitive intensity.
The use of the many sub-indices would facilitate decisions by management and management consultants, in regard to rectifying weaknesses which exist in the competitive tactics of the individual firm. It would thus increase the ability of the firm to initiate countermoves and thus introduce a stronger competitive tone into the market place [5, pp. 471–476].
A careful and continuing analysis of the sub-indices by policy makers would enable them to initiate control procedures without the "hue and cry" of a Royal Commission.