Business Strategy & Market Dynamics

Flashcards covering market share variations, the concept of branding, and the strategic advantages of focusing on product quality over price.

How does the viability of achieving a high market share differ across various markets?

It varies significantly; for example, a 10% market share is high for vegetable supply but very low for mobile phone markets.

What is branding in the context of business?

Branding is how a business differentiates itself using elements such as logos, slogans, and color to develop a positive brand image.

What are the benefits for a business like 'Top Bun' if they shift their focus from price to product quality?

They can stand out from competitors (USP), extend their product lifecycle, attract customers, work as cash cows, bring in seasonal products using cash cow revenue, gain a good reputation, and attract good quality customers willing to pay higher prices.

What is a major challenge for businesses that primarily compete on price?

It's hard to keep up with competitors, especially new businesses that may use price penetration strategies.