Competition and Customer needs

Cards (7)

Competitor - a business that sells the same products in the same market as another business
Five ways to compete :
Price
Customer service
Quality
Product range
Location
Price
Customer need:
Customers generally want to pay less for products and services.
How firms compete:
Reduce prices to compete with similar products, but they'll make less profit per product
Customer service  
Customer need:
Customers want good customer service and are more likely to use firm and spend more for good service
How firms compete:
Train staff to give good service, or provide extra services to stand out against competition
Quality 
Customer need:
Customers want good quality products
How firms compete:
Improve and emphasise quality of products, although this increases costs
Product range
Customer need:
Customers like to have a wider range to choose from, so they can find a product that suits them best
How firms compete:
Develop new products to fill gaps in product range - there's less competition for new products and the firm appears innovative
Location
Customer need:
customers prefer not having to travel for or wait a long time when buying products
How firms compete:
Open new stores or sell online to be more convenient