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GCSE Business · key term
Rivalry between businesses trying to attract the same customers.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
Revise: Factors Influencing LocationThe decision involves balancing proximity to the market, raw materials, labour, competition and costs.
Rivalry between businesses seeking to attract customers in the same market.
Specification 1.2.4 · Paper 1
Rivalry between businesses seeking to attract customers in the same market.
Revise: Competitive EnvironmentCompetition is rivalry between businesses seeking to attract customers in the same market. For an entrepreneur opening a café, nearby cafés may already offer the drinks, food and service that potential customers want.
Paper 1
A promotion offering customers the chance to win a prize, intended to attract attention or encourage purchases.
Revise: Point of Sale PromotionA competition offers customers the chance to win a prize. An attractive prize can draw attention to a business or product and give customers an extra reason to buy.
Do not assume competition always makes a location unattractive. Nearby rivals may also draw customers into the area.
When evaluating a response to competition or risk, weigh its benefits against its costs and explain why it suits that particular business.
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