1.2.4 - The Competitive Environment Flashcards
Spotting a Business Opportunity
1
Q
What are the two main types of competitors?
A
- Direct - competitors offer the same products
- Indirect - companies that satisfy the same customer needs
2
Q
What is a competitive environment
A
When a business operates in a market where there are other businesses producing the same or similar goods or services
3
Q
What are the impacts of weak competition (a monopoly)?
A
- Higher market share
- Higher revenue and sales
- Less improvement on products and services
4
Q
What provides competitive advantages?
A
- Price
- Quality
- Location
- Product range
- Customer service
5
Q
What are the benefits of competition?
A
- Encourages improvement of products
- Encourage the usage of market research
- Encourages the improving of customer service
