Competitive markets (Edexcel GCSE Business): Flashcards
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Practise the cards
12 cards from this deck
Competitive market definition
Competitive market definition
Many businesses compete for the same customers
Products in competitive markets
Products in competitive markets
Similar products/services customers find hard to tell apart
Main way businesses compete in competitive markets
Main way businesses compete in competitive markets
Compete on price
Operational improvements purpose
Operational improvements purpose
Make business more efficient to reduce costs
Product & service differentiation goal
Product & service differentiation goal
Make offerings unique or superior to stand out
Examples of customer incentives
Examples of customer incentives
Special offers, loyalty programmes, enhanced service
Price pressure effect
Price pressure effect
Forces low prices, impacts profit per sale
Cause of reduced profit margins
Cause of reduced profit margins
Need to compete on price whilst covering costs
Why careful expansion planning needed
Why careful expansion planning needed
Resources limited due to lower profit margins
Consumer benefit from competition: prices
Consumer benefit from competition: prices
Lower prices/costs than less competitive markets
Consumer benefit from competition: quality
Consumer benefit from competition: quality
Improved quality and customer service standards
Why businesses lower prices in competitive markets
Why businesses lower prices in competitive markets
Remain attractive vs rivals, increase sales volume