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Business Report part 3 - competition

Extracts from this document...

Introduction

Task 4 Competition I carried out primary research to find out if there was a demand for the shop. I did this using u ltd questionnaires and questioning a random sample of 20 people in the Paddington area. I collected information on competition by walking around the Paddington area and looking at all the mobile phone shops and other selling mobile phones in the area. An alternative method of research which I considered was phone research calling people at random form the telephone directory, and door step knocking on people's door and asking them questions, sending out questionnaires by post. Competition A situation whereby businesses compete for customers, by trying to offer better value than their competitors do. In this situation, products will continually improve or get cheaper, and the consumer will always be able to choose between different competitors' products. In a monopoly situation there is little choice, and the monopoly holder will not be under the same pressure to improve quality or lower prices. The competition act 1998 replaced the monopolies and mergers commission and made anti- competitive agreements between firms. There are two types of competition direct competition and indirect competition. Direct competition happens when companies produce identical or almost identical products very similar such as mobiles. Indirect competition business will force indirect competition as well as direct competition this happens when one business competes with another to get you to spend your money with them. ...read more.

Middle

The maximum amount most people would spend on a mobile is �100-�200. This graph shows the maximum amount people would spend on a mobile phone. Most people choose �100-�200. This is a good result because of course any customer would want a good mobile and the staff can provide them with a mobile to their satisfaction because most mobiles are available in this price. There are many competitions in the Paddington area as the area is big. There are many indirect competitions such as Argos, Woolworth. The major form of direct competition comes from the Carphone warehouse, customers were also happy with the service they provided. The other direct competition is between the link and us because they are selling the same product as us. This is the map of Paddington area Recommendations The business can be successful in the Paddington area by competing with other direct competitors. Also because there are many types of shops that sells other stuff, an underground, hotels, hospital, school, homes, many type of transport etc around the area so there must be business and profit. As much of Different types of mobiles especially Nokia (with internet features and camera) should be sold and also mobile accessories so people could buy every thing they need in one shop. The pricing strategy that should be used is something like �60-�290 because Carphone warehouse's price is �70-�300. The price is �10 down in both ways from Carphone warehouse so that phones for u ltd could have a good start this means that customers will come more and if that happens then of course it will be a good ending. ...read more.

Conclusion

The price is �10 down in both ways from Carphone warehouse so that phones for u ltd could have a good start this means that customers will come more and if that happens then of course it will be a good ending. Place we suggest the shop is located some where in pared street because our research indicated that. Product we believe that the product range should be different from the rivals. Future development Once the initial shop is established we recommend that the shop must stay in competition in the area between other businesses. We have included a projected product life cycle for the phones for u ltd chain of shops. The life of product is the period over which it appeals to customers. The sales performance of any product rises from nougat (when the product introduced to the market), reaches a peak and then goes into decline. Most products have limited life cycle. Initially the product may flourish and grow, the market will mature and, finally the product will move towards decline and petrification. At each stage in the product life- cycle there is a close relationship between sales and profits so that, as organisations or brands go into decline, their profitability decreases. The product life -cycle may last for few moths or hundreds of years. To prolong the life-cycle of a brand or a product, an organisation needs to readjust the ingredients of the marketing mix. We predict that the business will continue in its present form for Sources of information List books ...read more.

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