2.5.3 - The Competitive Environment

What is the competitive environment?

The degree of competition in the market and the buying and selling power of the customer and suppliers within that market

What is competition?

Market structure is the number of firms within an industry and the way in which those businesses behave

What is a competitive advantage?

A feature of a business that allows it to perform more successfully than others in the market

What are some competition strategies?

• New product development

• Changing existing products

• Promotion

• Changing prices

• Improving distribution network

• Quality assurance

• Improved customer service

What is market size?

The total volume in a market

What is the formula for market size?

units sold x price