Edexcel GCSE Business · 1BS0
Specification 1.2.4 · Paper 1
Revise: Competitive EnvironmentA competitor’s strength can be a threat, while a competitor’s weakness may create an opportunity to offer something better.
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GCSE Business · key term
A business that rivals another business for customers.
Used by Edexcel and OCR
Specification 1.2.4 · Paper 1
Revise: Competitive EnvironmentA competitor’s strength can be a threat, while a competitor’s weakness may create an opportunity to offer something better.
Paper 1
Another business offering goods or services to the same potential customers.
Develop a chain of reasoning: a competitor’s strength → the business’s response → an effect on customers, sales, costs or profit.
When judging a response, consider its cost, what customers value and whether competitors could copy it.
For an ‘explain’ question, link a planning decision to its effect: researching competitors → choosing a more competitive offer → reducing the risk of low sales.
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A business faces uncertainty: customers might not buy its products, or competitors might offer something more attractive. Planning helps the owner recognise potential problems before committing money and time.