2.3 Business concept development and competitive advantage

Question 1

What is a business concept?

Answer 1

Idea for business including actual product, target market and proposed competitive advantage.

Question 2

What makes a business concept successful?

Answer 2

Meets need of target market by providing competitive advantage.

Question 3

What is market research?

Answer 3

Systematic approach assisting business to make decisions about consumers in marketplace

Who are consumers? Would they buy it?

Question 4

How can a business concept arise?

Answer 4

From market opportunities, changing consumer needs or wants, developments in technology, pursuit of global markets.

Question 5

What is a feasibility study?

Answer 5

initial research required to determine whether business concept is viable

Research that determines if the business can exist successfully

Question 6

What else can feasibility study determine?

Answer 6

Is there a market for it? Likely risks and rewards

Question 7

What does market research aim to?

Dot points

Answer 7

• Identify new products or services
• understand existing customers, identify potential customers
• discover future market trends to assist with goal-setting
• keep company ahead of competitors

Question 8

Feasibility sudy aims to:

Dot points

Answer 8

• describe products being sold, staff required to operate business
• profile staff skills, personal qualities and qualifications needed for success
• description of market (customers, size of market, expected sales)
• strengths and weaknesses of competitors, how competitive advantage can be obtained.