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Business Studies Topic 1.1 (Business Failure (Sales lower than expected…
Business Studies Topic 1.1
Adding Value
Benefits
Charge a higher price
Create a point of difference from comptetitors
Protection against competitors offering lower prices
Focuses business on its target market segment
Methods
Build a Strong Brand
Offer a unique selling point
High quality products
Add product features that benefit customers
Well designed product or website
Strong Brand
Methods
Logo
Colour
Shape
Slogans
Benefits
Adds value
Differentiates product from competitors
Charge higher prices
Products
Goods
Actual products - can be touched, felt and heard
Services
Activities - Cannot be touched
Needs
Goods and services that are essential to survive
Wants
Goods and services that we would like but are not essential
Obsolete
Most products have a limited lifespan and at some point will no longer be sold
A product can become obsolete because of technology or changes in fashion/taste
Customer Needs
Friendly Consumer service
Reasonable prices
Fast delivery
Convenience
Wide rage and enough stock
Easy to use and navigate website
Business Failure
Start-up costs too high
Unexpected shocks
Too reliant on a small number of customers
Poor quality
Poor management
Poor market research
Sales lower than expected
Wrong forecast
Recession
Competition
Suppliers
Business idea
Changes in technology
Something which solves a problem
A cheaper or better way of providing an existing good or service
Something which is superior or easier to use than products currently available
Can be developed tested and brought to market quickly