1.2.4 The competitive environment

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Why does competition in a market usually benefit customers?: Wider choice and lower prices
What indicates a monopoly in a market?: Only one supplier in the market
Which feature is typical of an oligopoly?: A few large firms dominate market
Why must businesses study their competitors?: To identify competitors' strengths and weaknesses
What does a SWOT analysis help a business do?: Judge its position and spot threats
Which factor is NOT one of the five main competitor analyses?: Competitor advertising budget estimates
What is a likely effect of cutting prices to gain market share?: Reduced profit margins per sale
Which pricing strategy helps a new business attract customers quickly?: Penetration pricing with low prices
How can high quality affect a business's pricing?: Allow charging higher prices
Which location choice suits a retail café best?: High footfall city centre spot
How can a start-up use social media effectively?: Engage customers and build market share

Round complete