2.5.1 Economic influences & 2.5.3 The competitive environment GapFill

COMPETITIVE ENVIRONMENT AND BUSINESS DECISION-MAKING 

Competition in a marketplace will have various impacts on the decisions that a business makes. This will depend on the size of the business, the type of products, the industry and the number of  rivals challengers bosses mergers  in the industry. 

The  form strain shape cast of business ownership may be influenced by how competitive the market is.  For example sole traders and partnerships may decide to become private   limitation bound unlimited limited  companies and plcs in order to attract investment from selling shares in the company. This may be due to the company wishing to   contract thrive escalateexpand  further and needing to raise finance to do so. 

Decisions relating to the nature of the   technology outcomeproduct output  range may also be impacted.  For example a business may have decided to sell or manufacture a wide range of products in order to spread the   chance gamble risk peril. For example some shops like Marks & Spencer sell everything from food and clothes to travel insurance and personal banking. 

The  pricing cost valuationcurrency  policy chosen may also be affected by the competition in the market. For example if the market is large and there are lots of "giants" and well-known brands then a business may have to heavily   buy discount purchase rebate  and competitively price in order to effectively compete. 

The final decision that may be impacted is the choice of marketing  strategies scheme priorities rationale in the company's marketing mix. For example a business in a very competitive market may decide to heavily invest in   services announcementsadvertising publicity .  This is evident in the car insurance market, where repetitive TV advertising is used to develop strong brand identities.