1.2.4 the competitive environment

• a competitive environment is one which there are many businesses selling similar products & each trying to attract the same customers
• how can businesses stand out from competition?

  • price
  • quality
  • location
  • product range
  • customer service
• fierce competition may force businesses to...

  • cut costs by cutting staff
  • take short-term action such as price-cutting, which may damage the business long-term
  • adopt unethical practices, such as dumping waste materials