4.3 Know Your Competition

Companies offering similar or identical products and services to the same group of target customers are called ________________.

To remain ​ competitive , you should offer products that are of ​ (a)   or better ​ (b)   than the ​ (c)   .

• equal
• quality
• inferior
• subpar
• cheap
• competition

A business that makes only "a small amount of money" by selling the same products or services as you is a(an) ______________________ ___________________.

• direct competitor

• indirect competitor

A business that makes "most of its income" by selling the same products or services as you to the same market is called a ______________ _________________.

• direct competitor

• indirect competitor

CVS and Walgreens are __________ ______________.

• indirect competitors

• direct competitors

Walmart and Home Depot are __________ ______________.

• indirect competitors

• direct competitors

What is an example of indirect competition?

• Pizza Hut vs. Little Caesars

• McDonald's vs. Burger King

• Little Caesars vs. 7-Eleven

• Hip Hop Chicken vs. KFC

One reason why small businesses can compete successfully with large retailers is because large retail chains mainly rely in a single product line.

• True

• False

Answer explanation

Large retail chains do not rely on a single product line. They have the financial resources to offer various products.

Small businesses may have difficulty competing with large retailers because large retailers:

• develop more complete customer profiles,

• can keep larger quantities of products in stock,

• have a larger target market,

• offer superior service.

Identifying and examining the characteristics of a competing firm is called a __________ _________.