Business Studies – 1.5.1 Business objectives | e-Consult
1.5.1 Business objectives (1 questions)
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A business aiming to increase market share has several strategic options. Here are three examples, along with their potential advantages and disadvantages:
| Strategy | Advantages | Disadvantages |
| Aggressive Pricing | Attracts price-sensitive customers, quickly gains market share. | Can lead to price wars, reduces profit margins, may damage brand image if perceived as cheap. |
| Effective Marketing & Advertising | Increases brand awareness, attracts new customers, builds customer loyalty. | Can be expensive, effectiveness not guaranteed, requires ongoing investment. |
| Product Innovation & Development | Attracts new customers, differentiates the business from competitors, can command premium pricing. | Requires significant investment in research and development, risk of failure, may not appeal to all customers. |
The best strategy will depend on the specific industry, the business's resources, and the competitive landscape.