The Competetive Enviroment

• What do businesses compete to provide consumers with?

  Goods and services
• In what type of market do most businesses operate?

  A market with some level of competition
• What factors can determine the strengths and weaknesses of competitors?

  Price, quality, location, product range, customer service
• How can competitors impact a business's decision-making?

  Through their actions and market presence
• Why might a business reduce its prices in a competitive environment?

  To price match with competitors
• How can competition encourage innovation in businesses?

  By motivating them to create new products
• What can happen to a business's advertising efforts if there is no competition?

  They may reduce advertising efforts
• How does competition affect pricing strategies for businesses?

  It encourages them to keep prices down
• What can competition lead to in terms of product offerings?

  Increased product range
• What are the effects of competition on businesses?

  • Reduces prices to match competitors
  • Encourages innovation for new products
  • Cuts costs due to reduced advertising needs
  • Keeps prices down to attract cost-conscious customers
  • Increases product range to appeal to more customers