Advantages And Disadvantages - Enterprise and Entrepreneurship

.1.1 What are the advantages of developing an original business idea?

It may offer a unique product, attracting customers and allowing a higher price; it may face little direct competition initially.

1.1.1 What are the disadvantages of developing an original business idea?

Demand is uncertain, so sales may be low; development and promotion can be expensive for a start-up.

1.1.1 What are the advantages of adapting an existing business idea?

Customers already understand the product, reducing uncertainty; improvements can meet changing needs at lower development cost.

1.1.1 What are the disadvantages of adapting an existing business idea?

Existing rivals may have loyal customers; small changes may not provide a strong enough reason to switch.

1.1.1 What are the advantages of responding quickly to changing customer wants?

Products stay relevant, helping to retain sales; identifying trends early can win customers from slower competitors.

1.1.1 What are the disadvantages of responding quickly to changing customer wants?

Changing products or processes increases costs; trends can disappear before investment is recovered.

1.1.1 What are the advantages of using new technology to develop an idea?

New technology may create products or lower production costs; online tools can help reach customers cheaply.

1.1.1 What are the disadvantages of using new technology to develop an idea?

Equipment and training may be costly; technology can become outdated or fail.

1.1.2 What are the advantages of starting your own business?

The owner has independence and control over decisions; a successful business can generate profit and personal satisfaction.

1.1.2 What are the disadvantages of starting your own business?

The business may fail, causing financial loss; income is uncertain and the owner may work long hours.

1.1.3 What are the advantages of adding value through improved quality?

Better quality can increase satisfaction and repeat purchases; customers may accept a higher selling price.

1.1.3 What are the disadvantages of adding value through improved quality?

Higher-quality materials and checks increase costs; the higher price could deter price-sensitive customers.

1.1.3 What are the advantages of adding value through branding?

A recognisable brand can support higher prices and loyalty; it helps customers distinguish the product from rivals.

1.1.3 What are the disadvantages of adding value through branding?

Building awareness through promotion costs money; a poor reputation can quickly reduce demand.

1.1.3 What are the advantages of adding value through convenience?

Easy access or faster service saves customers time, encouraging sales; convenience can justify a premium price.

1.1.3 What are the disadvantages of adding value through convenience?

Longer opening hours, delivery or better premises can raise costs; rivals can copy convenient services.

1.1.3 What are the advantages of adding value through product design?

Attractive or practical design differentiates the product; stronger appeal may increase demand and selling price.

1.1.3 What are the disadvantages of adding value through product design?

Design work and prototypes cost money; a design that customers dislike may lead to wasted investment.

1.1.3 What are the advantages of using a unique selling point (USP)?

A clear difference from competitors gives customers a reason to buy; it can support a higher price.

1.1.3 What are the disadvantages of using a unique selling point (USP)?

Developing and communicating the USP can be expensive; competitors may imitate it.