B3 Understanding competitor behaviour GapFill

Entrepreneurs have to be aware of competitors when setting up a new enterprise. An independent sandwich shop would find it hard to gain customers if there were several large  supermarketsshoe shopspet shopsclothing outlets within walking distance, as customers often look for the cheapest price. If there are local competitors, then it's important that the entrepreneur's products are  similar tosmaller thandifferent fromthe same as those of competitors. Customers may be prepared to pay  monthlylessweeklymore for a product that they see as unique in the market.

In order to produce products or provide services that customers see as unique, and worth paying extra for, the entrepreneur has to have a clear understanding of the  featuresstandardsizescolour range of their competitors' products or services. Customers may prefer to buy from   an independentan internationala chaina national business to support them. The  customer servicemailing listpricesinformation is a very important way to attract and retain customers to smaller enterprises. Customers often like the personal touch, and getting to know the entrepreneur. A small independent repair garage can attract customers even if national chains appear cheaper, because there may be more  inquirydistrustpaperworktrust in the entrepreneur due to the personal relationship between them and the customers. The garage may also be able to offer more  scheduletimesdatesflexibility in terms of drop-off and collection times, particularly if the entrepreneur lives on site or close by. A small enterprise is unlikely to compete on  social media likespackagingpriceadvertising with a chain or national business. Increasingly, consumers realise that if they don't support independent businesses they will close. This means their choice of businesses to buy from will shrink.