17 - The competitive environment Flashcards
1
Q
a competitive enviornment
A
can alter the way a business acts or operates
2
Q
factors that effect competitivness
A
- number/size of the competition
- bargaining power of suppliers and customers
- seasonality of a product
- growth rate of the market
3
Q
positive impacts of competition
A
- increased innvoation
- wider product ranges
- more efficient
4
Q
negatives of competiton
A
- fall in price
- increase in the cost of promotion
5
Q
benefits of operating in large markets
A
- wider customer base
- less volatility than small markets
6
Q
negatives of operating in a large market
A
- more regulation and scrutiny
- potential for international competition
7
Q
benefits of operating in a small market
A
- less competition
- opporunities for expansion
- easier to build loyal customer relationships
8
Q
negatives of oeprating in a small market
A
threats of new entrants
few economies of scale
