2.5.3 Competitive environment
Cards (5)
- Competitive environmentdegree to which a business is affected by rivals that operate in the same market
- impact of competition
- encourages innovation/efficiency
- wider product ranges
- have to lower prices
- Increased promotion cost
- Small competitive environment
- Less competition
- Easier to build relationships
- Low barriers to entry
- Less economies of scale
- Large competitive environment
- More potential customers
- More regulation
- International competition
- how to determine competitiveness of a business
- number size of current competition
- extent to which products can be differentiated
- extent to which new businesses can enter the market
- knowledge of buyers and sellers