Competitive environment — AQA GCSE Study Guide
Exam Board: AQA | Level: GCSE
The competitive environment is the battleground where businesses fight for customer attention, sales, and survival. Understanding how competition impacts every aspect of a business—from marketing to finance—is essential for analysing real-world scenarios and scoring high marks in your GCSE Business exam.
Overview
The competitive environment is a fundamental concept in GCSE Business. It refers to the dynamic marketplace where two or more businesses attempt to sell similar goods or services to the same group of customers. For examiners, it is not enough to simply define competition; candidates must demonstrate how competition forces businesses to adapt and change across all functional areas (Marketing, Operations, Human Resources, and Finance).
In this topic, you will explore the difference between highly competitive markets and monopolies (where one business dominates). You will also examine the risks and uncertainties that entrepreneurs face when starting a business, their motivations for doing so, and the specific strategies they use to mitigate those risks.
The Nature of Competition
What is a Market?
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