Why should an entrepreneur study competitors?
Answer and explanation
Correct answer: To understand own strengths and needed improvements in the market
Competitor analysis reveals existing prices, features, service standards, customer preferences, and gaps in the market. An entrepreneur can use this information to identify a distinctive advantage and improve weak areas, while still making independent decisions. The purpose is not to copy everything, confuse customers, or abandon the venture. Therefore, A correctly states the value of competitor study.
Frequently asked questions
What is the correct answer to this question?
To understand own strengths and needed improvements in the market
Why is this the correct answer?
Competitor analysis reveals existing prices, features, service standards, customer preferences, and gaps in the market. An entrepreneur can use this information to identify a distinctive advantage and improve weak areas, while still making independent decisions. The purpose is not to copy everything, confuse customers, or abandon the venture. Therefore, A correctly states the value of competitor study.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
