2.5.3 - Competitive Environment Flashcards
1
Q
What does the competitive environment concern?
A
The number and strength of competitors in the
same market as a business
2
Q
What external factors influence how competitive a business can be?
A
- Number and size of competitors
- How products can be differentiated
- Amount of regulation
3
Q
5 ways a business can gain an advantage over competitors
A
- Wider Product Range
- Adjust pricing strategies
- Enhance customer service
- Higher quality
- Better Features
4
Q
Positives of competition
A
- Increased innovation
- Wider product ranges
5
Q
Negatives of competition
A
- Have to lower prices
- Increased promotion cost
- Unethical behaviour
6
Q
Benefits of a smaller market size
A
- Less competition
- Easier to build relationships
7
Q
Negatives of a smaller market size
A
- Low barriers to entry
- Low economies of scale
8
Q
Benefits of a larger market size
A
- More potential customers
9
Q
Negatives of a larger market size
A
- More regulation
- International competition
