Impact of competition on business decision making

• What does the competitive environment relate to in business?

  How a business is affected by competition
• How do businesses adapt their practices in a competitive environment?

  By enabling effective competition
• What might a business do if a competitor offers a discount?

  Offer a similar discount
• What is the impact of competition on product offerings?

  Businesses must innovate and update products
• What is defined as close competition?

  More than one business for the same customers
• Why is competition good for customers?

  It leads to better quality products
• What does 'quality' refer to in a business context?

  The standard of the product or service
• What does 'price' refer to in a business context?

  How much a business charges
• What is the role of innovation in competition?

  To launch new ideas into the market
• How might two florists compete with each other?

  By ensuring their products are high quality
• What happens if one business charges a higher price for a similar product?

  It may lose customers to competitors
• What is a territorial competition?

  Competition within the same location
• How might a business use low prices to compete?

  By forcing other businesses to close
• What is an example of a competitive pricing strategy?

  Offering ten lessons for £100
• How does a higher-priced service affect competition?

  It may struggle to compete with lower prices