the competitive environment Flashcards
(26 cards)
What is meant by ‘competitive environment’ in business?
The competitive environment refers to the external factors and conditions that affect a company’s ability to compete in the market.
True or False: A competitive environment includes only direct competitors.
False
What are the four types of market structures?
Perfect competition, monopolistic competition, oligopoly, and monopoly.
Fill in the blank: In a _____ market, there are many buyers and sellers, and no single buyer or seller can influence the market price.
perfect competition
What is an oligopoly?
A market structure in which a few large firms dominate the market.
True or False: Barriers to entry can protect existing businesses from new competitors.
True
What is a market share?
The portion of a market controlled by a particular company or product.
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, Threats.
Multiple Choice: Which of the following is a factor that can influence competition? A) Technology B) Location C) Customer preferences D) All of the above
D) All of the above
What is brand loyalty?
The tendency of consumers to continue buying the same brand over time.
True or False: A monopoly is characterized by many sellers and one buyer.
False
Fill in the blank: Companies use _____ strategies to differentiate their products from competitors.
marketing
What is a competitive advantage?
A condition or circumstance that puts a company in a favorable or superior business position.
Multiple Choice: Which of the following is NOT a type of competitive strategy? A) Cost leadership B) Differentiation C) Market segmentation D) Focus
C) Market segmentation
What role does consumer behavior play in the competitive environment?
Consumer behavior influences demand, pricing, and marketing strategies of businesses.
True or False: Understanding the competitive environment is only important for large businesses.
False
What is the purpose of competitive analysis?
To evaluate competitors’ strengths and weaknesses to inform strategic planning.
Fill in the blank: A _____ is a company that provides similar products or services to the same target market.
competitor
What is price competition?
A strategy where businesses compete primarily on price.
Multiple Choice: Which of the following can be a barrier to entry? A) High startup costs B) Strong brand loyalty C) Government regulations D) All of the above
D) All of the above
What is the impact of globalization on competitive environments?
Globalization increases competition by allowing foreign companies to enter local markets.
True or False: A firm can have a competitive edge without being the lowest cost producer.
True
What are substitute products?
Products that can be used in place of each other.
Fill in the blank: A _____ is an assessment of the strengths and weaknesses of a company compared to its competitors.
competitive analysis
