Competition (1.1.1)

Question 1

What are the two types of competition?

Answer 1

Direct and Indirect Competition

Question 2

What is Direct Competition?

Answer 2

Same Product, Same Customer
E.g. Hellman’s and Heinz Ketchup

Question 3

What is Indirect Competition?

Answer 3

Different Product, Same Customer
E.g. Mayo and Brown Sauce

Question 4

What does competition force you as a business to do? (4 Reasons)

Answer 4

It forces you to:
-Improve your Product/Service
-Improve your Productivity/Efficiency
-Spend more on Promotion
-Lower your price

Question 5

What are the methods of improving your Product/Service? (5 Methods)

Answer 5

-Convenience
-Branding
-Design
-USP
Quality

Question 6

What are the methods of improving your Productivity/Efficiency? (5 Methods)

Answer 6

-Training Staff
-Financial Motivation
-Empowerment
-Specialization
-Higher Skilled Staff

Question 7

What are the Methods of Promotion? (5 Methods)

Answer 7

-Advertising
-Sponsorship
-Social Media
-Loyalty Schemes
-Celebrity Endorsement

Question 8

What does lowering your price do for a business?

Answer 8

-Attracts more budget-friendly customers=Increased Sales
-Increased sales volume may lead to strong word of mouth=Better brand awarness