Competition
Business: Cambridge International GCSE (2027 Exams), topic 3.1.5
Competition
Competition is defined as other companies who are selling a similar (or the same) product in the same market. Competition is all about meeting the customer’s needs better than competitors. This might be by providing a low price or a high quality product. Businesses can compete on:
Location
- Businesses can compete based on location.
- E.g., Starbucks opening cafés in busy city centres to attract more customers.
Product range
- Product range is the different goods or services that one firm offers to customers.
- Example: Tesco offers groceries, clothing, electronics, and banking services, giving it a wide product range.
Customer service
- Businesses can compete on customer service.
- Example: John Lewis is known for its excellent after-sales service and returns policy, helping it retain loyal customers.
Price
- Price is a key way to compete in the market.
- Example: Aldi and Lidl use low prices to attract price-sensitive customers while maintaining quality.
Test yourself on Competition
Ryanair sells flights from £17. What do you think it competes on?
Colgate sell lots of different types of toothpaste. What do you think one variable that they compete on is?
Colgate sell lots of different types of toothpaste. What do you think one variable that they compete on is?