External Influences on Business Activity.

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External Influences on Business Activity

Market Competition

Products are made competitive in many different ways. Some businesses make a product competitive by lowering the price to equal or beat a main competitor e.g. Sainsburys lowering the price of baked beans to make them cheaper than Tesco or ASDA. Wight Mountain would try to lower the price of a specific bike to make it cheaper than Halfords. Businesses also make a product competitive by increasing the quality and the range of product, e.g. asking their own customers what they can do to improve a product. Wight Mountain could bring in another range of a particular bike, e.g. different suspension. Some businesses try to expand their customer service, e.g. at Sainsburys, the staff try to make the customers feel valued by the business so customers are happy shopping at Sainsburys.

Target Customers

Age: Popular music is usually bought by young people so music companies such as EMI take advantage by advertising in magazines because most young people read magazines. Coach holidays are most popular with older people, and so would be promoted to this age group. Sainsburys cater for all age groups as they have CDs