What role does the competitive environment play in business strategy?
Practice Questions
Q1
What role does the competitive environment play in business strategy?
It has no impact on strategy.
It helps in identifying market opportunities.
It only affects pricing strategies.
It is only relevant for large corporations.
Questions & Step-by-Step Solutions
What role does the competitive environment play in business strategy?
Correct Answer: Competitive environment helps in identifying opportunities and threats.
Step 1: Understand what the competitive environment is. It includes other businesses that sell similar products or services.
Step 2: Recognize that knowing about competitors helps a business see what they are doing well and what they are not.
Step 3: Identify market opportunities. This means finding areas where the business can do better or offer something new.
Step 4: Spot potential threats. This means being aware of what competitors might do that could harm the business.
Step 5: Use this information to shape the business strategy. This means deciding how to compete effectively based on what is learned from the competitive environment.
