PESTEC- Competitive Flashcards
1
Q
What are the positive impacts of competition?
A
Competition opening up a physical store right next to a business can be good as it provides more choice for customers and brings passing trade to the area.
Competition improves a market as it brings with it more choice, new ideas and keeps prices low, which can benefit all businesses in the market.
2
Q
What are the negative impacts of competition?
A
The competition could lower prices, undercutting another business. Business will either have to lower prices too, reducing profits, or risk losing customers to the competition.
The competition could launch new or improved products. Businesses will have to spend money researching and developing products to keep up with competition.
