Positioning the business

Is there a market?
Competitive advantage (commodity products, added value, market segments, building strong relationships)  

HideShow resource information

Is there a market?

To make your business more successful, you need to identify a potential market, by using market research. 

Turning the idea into reality will require information found to influence strategy and tactics.


Strategy: Co-ordinated long-term planning.

Tactics: Opportunities to influence problems. 

1 of 5

Competitive advantage: Commodity Products

  • Standardised products
  • Products that everyone needs (Milk, Petrol, Potatoes)
  • Most customers buy the same
  • Some companies attempt at branding and differentiation. 
2 of 5

Competitive advantage: Added value

  • A business needs to sell the product for more than the cost it took to make the inputs of the product.
  • This requires  the customers to pay more for the product because of the added value the company have placed on the product. 
3 of 5

Market Segments

The characteristics of products/customers are sub-divided into market segments.


  • Price
  • Speed
  • Safety
  • Size
  • Appearance


  • Age
  • Gender
  • Location 
  • Social Class
  • Income
  • Behaviour (spending habits)
  • Psychological
4 of 5

Building Strong Relationships

With stakeholders who have an interest in the business. 

  •  Business is their friend
  • Has customer interests at heart. 

Why: Customer loyalty

Owners/Shareholders: Owners of the company hope for profits. 

Employees: Employees are entitled to safe working environment and agreed wages. 

Consumers: Quality and standards of the goods/service

Creditors: Expect payment on time. 

Local Community: awareness of the local community and environment. 

5 of 5


No comments have yet been made

Similar Business Studies & Economics resources:

See all Business Studies & Economics resources »