Competition is the rivalry that exists between businesses in a market.
Some markets are competitive:
This is beneficial for consumers.
Why do you think this is the case?
Some markets are dominated by one company:
This is known as a monopoly.
What could South Western Railway do which is damaging to its customers?
Monopolies are closely regulated by the government.
Where a small number of very large companies dominate the market this is known as an oligopoly.
Market share for companies in markets can change.
Why do you think that Aldi and Lidl have grown so rapidly in the UK in recent years?
The difference between risk and uncertainty:
It is said that risk is quantifiable but uncertainty is not.
(Quantifiable means something that is capable of being measured or counted.)
There is obviously some overlap between the two concepts.
It could be argued that a risk is something that you are prepared to take whereas uncertainty is something that comes from nowhere.
Risk or uncertainty?
Opening a new restaurant.
Risk: Statistics indicate that 60% of new restaurants fail in the UK.
In 2007 Steve Jobs introduced the iPhone to the world.
Who knew consumers in rich countries would go crazy for a 'smart' phone (essentially a phone, music player and internet enabled device).
In this case uncertainty was very successful for Apple.
Risk versus uncertainty. More here.
In this case uncertainty was very successful for Apple.
Risk versus uncertainty. More here.
