Types of Business Orientation (1.1.1)

Question 1

What are the Two different types of orientation in a business?

Answer 1

Product and Market Orientation

Question 2

What is Product Orientation?

Answer 2

Focusing efforts on a innovative Product the market may not have know it needed. E.g. Tesla, Dyson, Apple

Question 3

What are the Advantages of product Orientation? (2 Advantages)

Answer 3

-Less Competition
-Premium Price

Question 4

What is the Disadvantage of product Orientation? (1 Disadvantage)

Answer 4

-High Risk

Question 5

What is Market Orientation?

Answer 5

Focusing efforts on working out what the market wants then producing a product to meet those needs. E.g. The Body shop ,Nike ,Amazon

Question 6

What is the Advantage of Market Orientation? (1 Advantage)

Answer 6

-Low Risk

Question 7

What are the Disadvantages of Market Orientation? (2 Disadvantages)

Answer 7

-More Competition
-Competitive Price

Question 8

Why is Product Orientation Risky?

Answer 8

This is because you don’t know if your product will sell and if it doesn’t you don’t have any other products to sell. However, focusing on one product can mean you can charge more for it because you have little to no competition.

Question 9

Why is Market Orientation more competitive?

Answer 9

It is more competitive as there will be more businesses aiming to supply the market with that type of product/service knowing that they are in demand. Online shopping has increased this.