2.5.3 The Competitive Environment 💰

Question 1

Examples of competitive environments?

Answer 1

Clothing
Online retailers
Supermarkets

Question 2

What are market structures ? What do they determine ?

Answer 2

Features and characterisers of markets - determine how competitive a market is

Question 3

What are the 6 determinants of competitiveness ?

Answer 3

The number and relative size of businesses in the market

Extent to Barriers to entry

Extends to which products can be differentiated

Knowledge that buyers and sellers process

Degree of interrelationships

Legal factors

Question 4

How does the number and relative size of business in the market determinate competitiveness ?

Answer 4

More business in market - market share of business is lower

Less ? - more market share - more likely to have monopolies

Question 5

How are the extents of Barriers to entry determine competitiveness ?

Answer 5

If low- large amounts of start up business - little Knowledge needed, Start-up costs low - Large amounts of competition

If barriers to entry are high - Competition is low



Question 6

how can the extent to which products can be differentiated determine competitiveness?

Answer 6

If products are homogenous- Competition to be large because it’s based on price and elements of the marketing mix and - innovation

Question 7

How does the knowledge that buyers and sellers possessed determine competitiveness ?

Answer 7

If an information is highly accessible businesses are able have the right knowledge to have the right price and marketing increasing competitiveness- opposite of not

Question 8

How many the degree of interrelationship determine the competitiveness of a business?

Answer 8

Action of one business does not affect the other reducing competitiveness

however if the sales of one business increases this means that another business cells will decrease

Question 9

How do legal factors determine competitiveness?

Answer 9

Prevention of monopolies but the customer is forced to buy the multiplier at a fixed price - prevention of so allows freedom of competitiveness and Prevents arise in barriers to entry

Question 10

What are the six impacts on businesses of a competitive environment?

Answer 10

Price
profit
Communication with customers innovation
Product range
marketing

Question 11

How May price be impacted on the business of a competitive environment?

Answer 11

Business has lost control of the price- has to be forced down due

large choice consumers have

increased price risk losing sales to competitors- It can differentiate ? Good 

Question 12

How is profit impacted on a business in a competitive environment? opposites ?

Answer 12

Profit margins will be narrower as prices will be very low

however if you can efficiently reduce costs may be able to increase profits than rivals 

Question 13

How was communication with customers impacted on the business of a competitive environment? 

Answer 13

Businesses will be under pressure to keep in touch with customers - non price ways - customer needs- competitive environment use social media to keep in touch

Question 14

How is innovation impacted on the business of a competitive environment?

Answer 14

Encouraged To innovate and gauge interest and develop USPS gain a competitive edge in the market

Question 15

How many product range impact on the businesses of environment?

Answer 15

Will be influenced by competitors

Question 16

How many marketing impact on a business of a competitive environment?

Answer 16

Will be very heavy initial investments will be highly influenced by rivals

Question 17

What are the five kinds of market?

Answer 17

Global - Largest markets businesses competing due to globalisation smaller businesses can infiltrate

national - Confined to national borders

regional

local-Market in limited areas market so I can influence the way businesses operates -

in small markets are not likely to undertake life skills of production skills large markets are likely to be more competition

Question 18

What kind of markets operate in large market?

Answer 18

Global and national

Question 19

What a large market more ?

Answer 19

Challenging for the business due to becoming low-cost and prices

Question 20

What do businesses being in large market to lead to businesses having to do? 

Answer 20

Constantly review operations

Question 21

What is it vital to do in large competitive markets?

Answer 21

Monitor activity - of the pricing strategies and methods of production they use 

Question 22

What does cause the monitoring rivals in a larger market result to?

Answer 22

Copying rivals design and packaging

Question 23

What are one of the main problems when operating in a small market?

Answer 23

Weather volume of sales will be enough to generate profit

Question 24

Why May small markets to be attractive?

Answer 24

Have a little competition

Question 25

What is another problem for operating in small market?

Answer 25

Stronger rivals into the market - independence find it hard to compete with large corporations as they have greater resources such

possibly be lower in cost because E of S