Competition

Question 1

Competition

Answer 1

2 or more firms operating in a market that provide similar goods / services

Question 2

5 ways AFL can become more competitive

Answer 2

Lower prices
Incentives 
Superior products
Superior delivery
Superior customer service

Question 3

How can AFL lower prices?

Answer 3

Reduce costs- become more efficient, cheaper supplier

Reduce profit margin

Question 4

What can AFL offer as incentives?

Answer 4

Free gifts
Money off
Free delivery

Question 5

How can AFL offer superior products?

Answer 5

Improve design

Improve quality

Question 6

What’s good about offering superior products?

Answer 6

AFL can charge more, increasing their profit margin

Question 7

What’s bad about offering superior products?

Answer 7

Expensive, in terms of research, training and legal protection on new designs

Question 8

How can AFL provide superior delivery?

Answer 8

Faster

More reliable

Question 9

How can AFL provide superior customer service?

Answer 9

Employ friendly, helpful staff

Question 10

How does competition benefit customers?

Answer 10

Greater choice

Better value

Question 11

Why do governments encourage competition?

Answer 11

Increase choice for customers
Decrease price for customers
Improve customer service