Competitive environment (AQA GCSE Business): Flashcards
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Practise the cards
15 cards from this deck
Competitive environment
Competitive environment
Rivalry for customers between businesses
What is a market?
What is a market?
Space where similar goods/services are bought & sold
Direct competition
Direct competition
Businesses offering very similar products to same customers
Example of direct competition
Example of direct competition
Petrol stations - offer essentially same product
Indirect competition
Indirect competition
Different products/services satisfying same customer need
Example of indirect competition
Example of indirect competition
Transport options: trains, buses, cars
No competition (monopoly)
No competition (monopoly)
Unique product/service with no viable alternatives
Business risk definition
Business risk definition
Chance of loss/damage or when hoped-for outcome fails
Primary business risk
Primary business risk
Business failure & entrepreneur losing their investment
Poor management causes
Poor management causes
Inadequate planning, poor decisions, costs not controlled
Risk of relying on few customers
Risk of relying on few customers
If relationship ends, business at greater risk of failure
Non-financial rewards of enterprise
Non-financial rewards of enterprise
Personal satisfaction, control, achieving milestones
What motivates entrepreneurship?
What motivates entrepreneurship?
Combination of personal fulfilment & financial opportunity
Overestimating sales risk
Overestimating sales risk
Unrealistic expectations lead to cash flow problems
Quality problems effect
Quality problems effect
Destroy reputation, customers go to competitors