20 Competition and businesses in the global market
Before you start
Main focus
All businesses, regardless of the nature of their operations, need to operate in an ethical and socially responsible manner. It is important that they are aware of factors and pressures located within their operating environment, in particular their customers and competitors.
Why it’s relevant to us
Australia operates as an open market economy and as such we are all participants in and affected by the operation of businesses and the impact they have on our economy. Businesses have a vital role to play in our economy and we as customers and consumers benefit from them being competitive with each other.
Inquiry questions
- Why is being competitive in the market important to businesses?
- What strategies and techniques can businesses undertake to gain a competitive advantage over their rivals?
- What effect does being a socially responsible business have on gaining a competitive advantage?
Key terms
- Brand
- Brand leader
- Competition
- Competitive advantage
- Ethics
- Market
- Market share
- Monopoly
- Open innovation
- Product differentiation
- Social media
- Social responsibility
- Stakeholder
Let’s begin
Since you awoke this morning, you have been exposed to many businesses and the strategies and techniques they undertake to get you to purchase their goods and use their services. All this has been done as part of their quest to attain a competitive advantage over their rivals and to gain your spending dollar. This exposure may have come from you making a choice such as ‘Do I take a tram, train, bus or car as the form of transport to get me to school today?’ Or at lunchtime, ‘Will I eat the sandwiches brought from home or spend money at the school cafeteria?’ Throughout your entire day and life you will be exposed to businesses operating in a competitive marketplace both domestically and globally.