The Market (Edexcel A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Competition definition
Competition definition
Rivalry between businesses in the same market
Market definition
Market definition
Where buyers & sellers communicate & trade goods/services
5 methods businesses use to compete
5 methods businesses use to compete
Lower prices, differentiation, quality, ads, extra services
Product differentiation
Product differentiation
Making products appear distinct from rival offerings
Cost of all competitive methods
Cost of all competitive methods
Reduce profit margins
Purpose of takeovers & acquisitions
Purpose of takeovers & acquisitions
Remove rivals as competitors
Barriers to entry
Barriers to entry
Making it difficult for new businesses to enter market
3 consumer benefits of competition
3 consumer benefits of competition
Greater choice, better quality, lower prices
Dangers when competition is lacking
Dangers when competition is lacking
Higher prices, restricted choice, less innovation
Government role re: competition
Government role re: competition
Ensuring competition exists in markets