Competition Flashcards
1
Q
What is meant by competition
A
The contest between organisation that provides similar products/services or have the same target audience in order to gain sales
2
Q
How does the strength of competition affect a business
A
Greater competitiveness creates more productivity & better quality of products and services.
3
Q
Why may firms enter or exit a market
A
They will enter/exit a market due to profit
4
Q
What are the barriers to entry or exit in a market
A
- Capital costs
- pricing strategies
- diseconomies / economies of scale
- patented
- advertising / marketing
- strengths of other firms
5
Q
The impact Competition has on a business, stakeholders and its market
A
