(KN)The new competitor might have new and previously unseen product, so it might significantly impact an established business' market share.
(APP)For instance, McDonalds when it first entered the restaurant business significantly impacted other business' market share, as it was the first fast food restaurant and promised extremely quick serving of food as it's USP.
(AN)This caused other businesses to instead to work towards only breaking even as due to many people wanting to go to McDonalds for it's USP, other restaurants would have less diners on the day to day basis, thus they had to shift goal to survival.
07 Explain how the arrival of a new competitor might force an established business to change its objective to survival.
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Aarib Saad
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Muaz Aamir
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Re: 07 Explain how the arrival of a new competitor might force an established business to change its objective to surviv
KN:
When a new competitor enters the market, it increases competition, which can reduce sales and profits for existing businesses.
AP:
For example, if a new fast-food chain opens near McDonald’s Pakistan, it could attract some of McDonald’s regular customers by offering cheaper prices or better deals.
AN:
The business may start losing customers, leading to lower revenue. It might struggle to cover costs if sales keep dropping. It could then shift its main goal from growth to survival so it can stay open and protect its market share.
When a new competitor enters the market, it increases competition, which can reduce sales and profits for existing businesses.
AP:
For example, if a new fast-food chain opens near McDonald’s Pakistan, it could attract some of McDonald’s regular customers by offering cheaper prices or better deals.
AN:
The business may start losing customers, leading to lower revenue. It might struggle to cover costs if sales keep dropping. It could then shift its main goal from growth to survival so it can stay open and protect its market share.
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Ayaan Fayaaz
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Re: 07 Explain how the arrival of a new competitor might force an established business to change its objective to surviv
[kn] A new competitor can reduce an established business’s sales and profits.
[APP]For example, if a new pizza shop opens nearby, an existing takeaway might lose many of its regular customers.
[An]This could force the business to shift its focus from growth to survival make it lower prices or improve quality to stay competitive and rethink its marketing to retain loyal customers and avoid closure.
[APP]For example, if a new pizza shop opens nearby, an existing takeaway might lose many of its regular customers.
[An]This could force the business to shift its focus from growth to survival make it lower prices or improve quality to stay competitive and rethink its marketing to retain loyal customers and avoid closure.
Re: 07 Explain how the arrival of a new competitor might force an established business to change its objective to surviv
kn:when a new competitor enters the market it can reduce the sales and market share of existing businesses.
app:forexample if a new fast food chain opens near an established burger shop the shop may lose many of its regular customers and see profits fall.
an:as a result the business may shift its focus from growth to survival aiming to retain loyal customers and cut costs to stay operational.
app:forexample if a new fast food chain opens near an established burger shop the shop may lose many of its regular customers and see profits fall.
an:as a result the business may shift its focus from growth to survival aiming to retain loyal customers and cut costs to stay operational.