Competition (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
Why should businesses examine their rivals carefully?
Why should businesses examine their rivals carefully?
To identify strengths & weaknesses
What can businesses discover by studying their competition?
What can businesses discover by studying their competition?
Gaps in the market
What is price competition?
What is price competition?
Offering lower prices than rivals
What does a quality focus competition strategy involve?
What does a quality focus competition strategy involve?
Superior quality justifying higher prices
How many competition areas should successful businesses typically excel in?
How many competition areas should successful businesses typically excel in?
2-3 areas
What is product differentiation?
What is product differentiation?
Making products different from rivals
How does differentiation help businesses with customers?
How does differentiation help businesses with customers?
Targets particular market segments
What happens when businesses compete directly with identical products?
What happens when businesses compete directly with identical products?
They often end up in price wars
Why are price wars particularly dangerous for small businesses?
Why are price wars particularly dangerous for small businesses?
They have less financial capacity
What is specialisation as a differentiation strategy?
What is specialisation as a differentiation strategy?
Serving specific customer groups
How might an independent music store differentiate from supermarket chains?
How might an independent music store differentiate from supermarket chains?
Offer specialist genre knowledge
What does differentiation allow businesses to focus on instead of just price?
What does differentiation allow businesses to focus on instead of just price?
The value they provide