Why and How do businesses compete

Competition drive business growth and can benefit consumers.

They can also;

1. Increase customer base and loyalty

2. Increase revenue and sales

3. Expand market share

4. Maximize profits

5. Develop reputation

Firms compete in both price and quality. Customers are more likely to purchase at a lower price. While, consumers will also benefit as business compete to improve;

1. After sales service

2. Quality of the product

3. Product packaging

4. Product image and brand

5. Customer service

With improving better services, customers are likely to repeat purchase and develop customer loyalty as you achieve customers needs and wants.

RELEVANT CONCEPTS

1. Competition

2. Business Objectives

3. Quality

4. Price

PAST YEAR QUESTIONS

1. Identify and explain two reasons why quality might be important for Ben’s business. (4 marks) May/June 2018/11

2. Identify and explain two reasons why high quality might be important to GGB (4 marks) Oct/Nov 2018/13

3. Identify and explain two reasons why building good customer relationships might be important to the success of George’s business. (4 marks) May/June 2019/12

4. Identify and explain two ways in which a firm could maintain high quality. (6 marks) Oct/Nov 2019/13