Competitive Environment

Question 1

What is competitiveness?

Answer 1

Ability of a business to deliver better value to customers than competitors

Question 2

What is a competitive advantage?

Answer 2

• ability of a business to add more value for its customers than its rivals and attain a position of relative advantage
• a situation where a business has an advantage over its competitors by being able to offer better value, quality and or service

Question 3

Nature of competition in a market is determined by these factors:

Answer 3

• the extent of current competition
• potential for new businesses to enter the market
• extent to which a business produces a similar product or a differentiated product

Question 4

What can existing competitors in a market do to dissuade new businesses from trying to enter a market?

Answer 4

• product differentiation
• control access to raw materials and distribution channels
• retaliation by established products