Unit 3.3 - The Competitive Environment - Advantages and disadvantages table in A Level and IB Applied Business

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Created by: drainey761
Created on: 01-12-15 11:27

Unit 3.3 - The Competitive Environment - Benefits of competition

Advantages

Price - Higher competition levels mean businesses have less influence on making prices higher. Lower for consumer.
Quality - High competition means businesses need to compete on quality of the goods and services so they do not lose customers to competitors.
Choice - More businesses providing products mean consumers have a wider range to choose from.
Efficiency - High competition forces businesses to be efficient and remain competitive.

Disadvantages

Companies may partake in bad practices and can lead to disadvantages of high competition levels such as :
Increased pollution
Unfair trade
Social and ethical issues - child labour and bad work conditions.
High risk of unemployment

Evaluation

Competition is beneficial for consumers as the businesses need to keep improving by producing high quality goods at a lower price so they can gain more sales than rivals.

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