Competition Flashcards
1
Q
What is competition?
A
The rivalry between businesses that are operating in the same market
2
Q
When does competition occur?
A
When 2 or more business les independently supply goods to the same group of consumers
3
Q
How can customers be encouraged?
A
Discounts Loyalty cards Advertisement Celeb endorsed Low prices Differentiated products
4
Q
What is direct competition ?
A
Another company offering the same products to the same market
5
Q
What is indirect competition?
A
A company that competes for the same target/customer expenditure but offers alternative products
6
Q
How do businesses remove competition?
A
Buy them out
Low prices
Unique products
Advertise
7
Q
How are customers benefited by competition?
A
Lower prices
Wider range of products
Higher quality products
More innovation
