Analysing the competition

Question 1

One way of analyzing competition

Answer 1

Market mapping, allows you to see how many competitors there are in your area depending on what type of product they are selling whilst taking into account the price and quality of the goods.

Question 2

Advantages of market mapping

Answer 2

• allows you to identify gaps in the market

- can help a business differentiate its product from its competition

Question 3

Disadvantages of market mapping

Answer 3

• can be hard to categorize some products and services

- sometimes identifying a gap does not mean that there is a gap in the market for it, it will need more research.

Question 4

Competitive advantage?

Answer 4

Any feature of a business that allows it to compete effectively with their rival products.

Question 5

Examples of a competitive advantage?

Answer 5

Price, quality, service, reliability, convenience and innovation.

Question 6

Adding Value?

Answer 6

The difference between the price of the finished product and the cost of the inputs involved making the product.