Business Report part 3 - competition

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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. A firm producing women’s fashions products will be in indirect competition with one producing just women’s under wear. Producers of teenager’s magazines with DVDs. The magazines producer by having an exciting front cover and interesting stories may persuade teenagers to buy the magazine rather than DVDs.

 There is competition in Paddington area. There are many ways in which phones u like ltd may be able to compete with other mobile phone shops in the area by offering lower prices from other shops, additional features such as light weight or big screen, friendly service such as providing all required and important information about the mobile, taking in complaints and giving a faster response to it etc. additionally flexibility on upgrade could also be used to be competitive so more customers will choose this shop for this facility, better tariffs from other shop will also increase the chance of people coming to this shop.

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Now I will need to look at the location of the business to find who my competitors are. I am going to find my indirect and direct competitors.

Map of Paddington area

This map is to show what place in particular I need to concentrate.

Task5

Market research report

Report

To: Managing direction of phones for u ltd

From: Deizy begum

Date: 4/11/03

Re: market research for phones for u ltd

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