The percentage of sales in a particular market recorded by a business.
When there is a lack of information about a situation meaning the outcome or consequences are difficult to predict.
When the value of the economy's output of goods and services falls for six months or longer.
When more than one business is trying to attract the same customers.
1.6 Business plan
A document setting out what a business does and what it helps to achieve in the future.
Someone who is willing to take risks involved in starting a new business.
When a business doesn't face any competition in a particular market.
When a business starts selling products in new markets.
1.10 Contract of employment
A legal document stating the hours, rates of pay, duties and the other conditions under which a person is employed.
2 What is a market?
2.1 A market exists where there are
buyers and sellers who come
together to exchange goods and
services for a price.
2.2 A market can be geographical,
such as a high street, or online,
e.g. websites for music and film
2.3 Markets can be local, such as
convenience shops, or global, such
as selling cars around the world.
3 What is competition?
3.1 Competition can be local or
3.2 Competition exists when more
than one business is attempting to
attract the same customers.
3.3 The more businesses provide the
same goods or services the more
competitive the markets.
4 Levels of competition
4.1 For some businesses there are
very few rivals, but for others
there is strong competition.
4.2 A monopoly exists when a
business does not face any
competition in a particular
4.3 Water companies in the UK currently have
no other companies to compete against.
5 Competition in market with few businessses
5.1 Market share is the percentage of sales in a
particular market that a business controls.
5.2 Globalisation has meant that many UK markets
are dominated by a small number of businesses
who have a large market share.
6 Different ways of competing.
6.1 Price competition means businesses avoid
competing strongly on price with larger
rivals as this will cause lower profits.
6.2 Competing by developing new products aims to
attract customers from competitors, e.g. the
games console, Nintendo Switch, can be used
on the go or at home.
6.3 Competing through advertising happens when consumers in the
market switch brands regularly, so they may be attracted by a
large amount of advertising, e.g. the car insurance market is very
competitive, so companies like Direct line advertise to sttract new