the competitive environment
Cards (12)
- product range
- competitors can copy a product that doesn’t have a patent
- company with a strong product but limited range of variations is a weakness because rivals can produce something similar
- patent gives the investor a new product or process the right to be the only user - nobody can copy the idea
- customer service
- failure to deliver on speed of delivery or being rude and dumb is a customer service weakness
- another business can steal your customers through providing reliable and nice customer service
- competing with rivals forces businesses to
- Offer good products and good services
- Keep prices down
- Bring in new, innovative products or services to break away from competition
- innovative a new product or service , perhaps original
- if you get beat by competitors
- you have to cut costs by cutting staff
- take short term action, like cut prices, which thus damages the firms reputation
- adopt unethical policies, like dumping rubbish in the lake
- unethical an action or decision that is wrong from a moral standpoint
- Understanding the competitive environment:● strengths and weaknesses of competitors based on: price, quality, location, product range and customer service● the impact of competition on business decision-making.
- competitive environment-the strength of competition between companies in the same market
- Price- how much competitors charge and what they offer for the price companies that charge high prices for better quality may have loyal customers who ignore other businesses' low prices because of the value they place on the other company.
- Quality-
- if companies make mistakes with quality ,rivals will steal their customers
- a new business should buy rival products and identify if quality is a weakness of their
- bad quantity=business is vulnerable to attack.
- location-
- good location helps gain customers
- impulse buy products should be in a busy place
- however high rent means business must generate enough sales to cover costs