22.

Competitive environment
1. Missing Words
Understanding the _______________________ is vital to business success. But so is a good understanding
of your competition. Do ______________ have weaknesses that you can exploit? If their customer service
is poor, perhaps your next advertising campaign should focus on the qualities of yours. And if their main
shop locally is twenty metres from the station, why not take the _________________ that’s right on the
forecourt – the perfect spot. All business ___________________ need to bear in mind the competitive
environment. Words from: location, decisions, rivals, customers
2. How tough is the competition?
This bar chart shows the changes in market share for Asda, Sainsbury and Morrisons between 2010 and
2017. Look at this data than answer the questions below.

2.1 Identify the winning and losing competitors in the grocery market, as shown in the bar chart.
____________________________________________________________________________
____________________________________________________________________________
2.2 Aldi and Lidl are famous for competing on price. Outline one way in which Sainsbury’s may have
competed successfully between 2010 and 2017.
____________________________________________________________________________
____________________________________________________________________________
3. What might be the impact of competition on business decision making?

Situation Effect on decision making Risks if decision proves wrong

The owner of a small hairdressing
salon wants to increase prices,
but sees a rival is opening soon
across the road
A new pizza restaurant, due to
open in the next 6 months, has
found that customers believe
rivals’ pizzas are not great
A large local supermarket rival
has reopened after an expensive
re-fit; it looks v good; how
should we respond?
In a fiercely competitive local
market for taxis, one business
wants to spend £400,000 going
upmarket with a Mercedes-only
service
www.a-zbusinesstraining.com
www.a-zbusinesstraining.com