Why should an entrepreneur study competitors?
Answer and explanation
Correct answer: To understand own strengths and areas for improvement in the market
Competitor analysis reveals the alternatives available to customers, their prices, features, service levels, and possible strengths or weaknesses. This information helps an entrepreneur identify a genuine point of difference, improve the offering, and make more informed strategic decisions. It does not justify copying or stealing, ignoring customers, or setting prices without analysis. Therefore, A is correct.
Frequently asked questions
What is the correct answer to this question?
To understand own strengths and areas for improvement in the market
Why is this the correct answer?
Competitor analysis reveals the alternatives available to customers, their prices, features, service levels, and possible strengths or weaknesses. This information helps an entrepreneur identify a genuine point of difference, improve the offering, and make more informed strategic decisions. It does not justify copying or stealing, ignoring customers, or setting prices without analysis. Therefore, A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
