12 competitive environment

• to analyse strengths and weaknesses of rivals, use focus groups talking about rivals
• competition features that should be focused on are:

  • price
  • quality
  • location
  • product range
  • customer service
• competition forces businesses to:

  • offer good products and service
  • keep prices down
  • bring in new, innovative products or services to break away from fierce competition
• however, unhealthy competition may force businesses to:

  • cut costs by cutting staff
  • price cutting
  • adopt unethical practises