The competitive environment

• Competition 


  exists when there is more than one business trying to compete for the same customers in the market.
• Direct competition


  means business have competitors that produce a very similar product
• Indirect competition 


  means businesses have competitors with similar characteristics but do not sell the exact same good or service
• What do businesses compete with their rivals on?

  • unique selling points
  • price
  • quality
  • convenience
  • location
  • product range
  • customer service