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- competition in markets is influenced by the globalisation of economies
- the influence any one business has over the price and output of its products and services varies significantly between different products and services and different markets and regulatory frameworks
- changes take place in markets and many factors accelerate this pace of change
- businesses seek to become more competitive by using a range of strategies, such as adding value, improving quality, product differentiation, advertising and pricing policies
- businesses seek to manage the competitiveness of the markets within which they operate by using a range of strategies, such as mergers, take-overs and product differentiation
- competition affects stakeholders in the market e.g. customers, employees, creditors, shareholders, suppliers, and the community.
You need to be able to identify, analyse and evaluate this range of factors and explain how they combine to determine the market conditions within which a business operates. You will need to identify the implications for businesses operating at a national (UK) level.
The effect of the competitive market can be seen in the changing pattern of industry. You need to be able to classify businesses into the primary, secondary and tertiary industrial sectors and know how to interpret trends within and across these sectors that are the result of market changes.
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