Lesson 1.2.4a

1.2.4a Strengths and weaknesses of competitors Quiz: Pearson Edexcel Business, Unit 2

20 questions

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Lesson 1.2.4a, Strengths and weaknesses of competitors: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 2: Spotting a business opportunity, written with Revision Ninja.

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The 20 questions

  1. Which of these is a strength of a competitor?

    • A well-located shop near a busy railway station
    • A shop that has never had any customers visit it since opening
    • A shop whose prices rise every month without any reason given to customers
    • A shop that has been closed for refurbishment for the last six months

  2. Which of these is a weakness of a competitor?

    • A strong location in a busy high street with plenty of passing trade
    • A limited product range that does not meet the needs of many customers
    • A wide product range that covers most of the needs of its customers
    • A large number of satisfied customers who recommend it to their friends

  3. A competitor offers poor customer service. Which area of competition is this?

    • Price
    • Customer service
    • Product range
    • Location

  4. Which of these is an example of a competitor's strength in terms of price?

    • Offering products at a lower price than most rivals in the market
    • Keeping prices unchanged for years while costs rise steeply each month
    • Changing its prices every week without telling customers in advance
    • Charging the highest prices in the market and losing many customers each year

  5. A competitor has high-quality products but a limited opening time. What does this show about its strengths and weaknesses?

    • Quality is a strength, while limited opening times are a weakness
    • Both quality and limited opening times are weaknesses that harm the business
    • Both quality and limited opening times are strengths that help the business
    • Quality is a weakness, while limited opening times are a strength for the business

  6. Why is it useful for a business to analyse the strengths and weaknesses of its competitors?

    • It removes the need for the business to think about its own strengths or weaknesses
    • It can identify ways to compete more effectively by exploiting the competitors' weak points
    • It means the business can avoid all competition by copying every competitor's strategy
    • It guarantees that the business will never lose a customer to a rival in future

  7. Which of these is a competitor's strength in terms of location?

    • Having a shop in a busy shopping centre with high footfall
    • Having a shop on a quiet back road with few passing customers each day
    • Having a shop located in a town that has very few residents or visitors
    • Having a shop that is open only on Sundays for a few hours a week

  8. A rival has a very wide product range. Which of these is the most likely effect on a new business?

    • The new business will find no competition at all in its target market segment
    • The new business will be able to raise its prices above any level the rival charges
    • The new business may find it harder to attract customers who want a broad choice
    • The new business will always win customers because the rival has too many products

  9. Which of these shows a competitor's weakness in product range?

    • Selling a wide variety of coffees, teas and cakes to meet customers' tastes
    • Selling only one type of coffee when customers want a choice of drinks
    • Selling products that are always in stock so customers can buy them easily
    • Selling a range of products that is updated each season to match trends

  10. Which of these is a strength in customer service?

    • Staff who respond quickly to queries and resolve problems on the first call
    • Staff who are rude to customers in the shop and make them feel unwelcome
    • Staff who take several days to reply to customer emails about faulty products
    • Staff who regularly ignore customer complaints and do not follow them up

  11. A rival's prices are higher than the market average and its customer reviews are poor. What does this show?

    • Its prices are a strength while its customer service is a weakness of the business
    • Its prices and customer service are both strengths that make it hard to beat
    • Its prices and customer service are both weaknesses that a new business could exploit
    • Its prices and customer service are neither strengths nor weaknesses in any sense

  12. Which factor is the most important when comparing a competitor's location?

    • How easily customers can reach the competitor's premises
    • The number of years the shop has been trading in the same building
    • The number of staff who work in the premises on any given day
    • The colour of the premises and the style of the shop sign outside

  13. A business compares itself with a competitor that offers free delivery. Which area of competition is this?

    • Price, because free delivery is always charged to the customer in the final bill
    • Customer service or convenience, because free delivery adds to the service offer
    • Product range, because free delivery means the shop sells more products overall
    • Location, because free delivery depends only on where the shop is situated

  14. Which information is the most useful for judging a competitor's strengths?

    • Customer reviews, prices and product range compared with the business's own offer
    • The exact temperature of the competitor's shop on a summer afternoon
    • The competitor's colour scheme and the typeface used on its website pages
    • The number of times the competitor's founder has changed hairstyle

  15. Which of these shows a competitor's weakness in price?

    • Charging a price that is much higher than customers consider good value for money
    • Charging a price that matches the average price paid across the whole market
    • Charging a price that changes according to demand so it stays competitive
    • Charging a price that is lower than most rivals while keeping quality high

  16. A competitor has a strong location but high prices. Which statement best describes this?

    • Its location is a strength, while high prices are a weakness
    • Its location is a weakness, while high prices are a strength for the business
    • Both its location and its prices are strengths that make it hard to beat
    • Both its location and its prices are weaknesses that harm its trade

  17. A competitor offers a very narrow product range. Which area of competition is this?

    • Price
    • Customer service
    • Product range
    • Location

  18. Which of these is a strength of a competitor's customer service?

    • Staff who are often unavailable and leave customers waiting for long periods
    • Staff who ignore complaints and do not follow up on problems raised by customers
    • Staff who give little information and rarely answer customers' questions
    • Staff who are knowledgeable and help customers choose the right product

  19. A rival is located on a quiet side street with little footfall. What does this show?

    • A location weakness that a business could exploit with a more visible site
    • A price weakness because the rival charges less than its competitors
    • A location strength because the rival has no passing trade to compete with
    • A product range strength because the rival stocks many different products

  20. Which of these is most useful when comparing a competitor's prices?

    • Comparing its prices with the average price of the market for the same products
    • Counting the number of colours that the competitor uses on its website design
    • Measuring the size of the competitor's shop window in square metres
    • Recording how many years the competitor's owner has been in the trade

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