13148718
Description
Mind Map by Helen Johnson, updated more than 1 year ago
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Created by Helen Johnson
over 6 years ago
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2.6 The competitive environment
- Keywords
- Markets
Annotations:
- Where there are buyers and sellers.
- Market Share
Annotations:
- The percentage of sales in a particular market recorded by a business.
- Uncertainty
Annotations:
- When there is a lack of information about a situation meaning the outcome or consequences are difficult to predict.
- Recession
Annotations:
- When the value of the economy's output of goods and services falls for six months or longer.
- Competition
Annotations:
- When more than one business is trying to attract the same customers.
- Business plan
Annotations:
- A document setting out what a business does and what it helps to achieve in the future.
- Entrepreneur
Annotations:
- Someone who is willing to take risks involved in starting a new business.
- Monopoly
Annotations:
- When a business doesn't face any competition in a particular market.
- Diversification
Annotations:
- When a business starts selling products in new markets.
- Contract of employment
Annotations:
- A legal document stating the hours, rates of pay, duties and the other conditions under which a person is employed.
- Markets
- What is a market?
- A market exists where there are
buyers and sellers who come
together to exchange goods and
services for a price.
- A market can be geographical,
such as a high street, or online,
e.g. websites for music and film
downloads.
- Markets can be local, such as
convenience shops, or global, such
as selling cars around the world.
- A market exists where there are
buyers and sellers who come
together to exchange goods and
services for a price.
- What is competition?
- Competition can be local or
national.
- Competition exists when more
than one business is attempting to
attract the same customers.
- The more businesses provide the
same goods or services the more
competitive the markets.
- Competition can be local or
national.
- Levels of competition
- For some businesses there are
very few rivals, but for others
there is strong competition.
- A monopoly exists when a
business does not face any
competition in a particular
market.
- Water companies in the UK currently have
no other companies to compete against.
- For some businesses there are
very few rivals, but for others
there is strong competition.
- Competition in market with few businessses
- Market share is the percentage of sales in a
particular market that a business controls.
- Globalisation has meant that many UK markets
are dominated by a small number of businesses
who have a large market share.
- Market share is the percentage of sales in a
particular market that a business controls.
- Different ways of competing.
- Price competition means businesses avoid
competing strongly on price with larger
rivals as this will cause lower profits.
- Competing by developing new products aims to
attract customers from competitors, e.g. the
games console, Nintendo Switch, can be used
on the go or at home.
- Competing through advertising happens when consumers in the
market switch brands regularly, so they may be attracted by a
large amount of advertising, e.g. the car insurance market is very
competitive, so companies like Direct line advertise to sttract new
customers.
- Price competition means businesses avoid
competing strongly on price with larger
rivals as this will cause lower profits.
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