Business Studies – 1.3.3 Why some businesses grow and others remain small | e-Consult
1.3.3 Why some businesses grow and others remain small (1 questions)
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Tech Solutions could develop new markets through:
1. Exporting to Other Countries: This involves selling the software to businesses in countries outside the UK.
| Cell | Details |
| Benefits | Potential for significant revenue growth by accessing larger international markets. Diversifies revenue streams, reducing reliance on the UK market. |
| Drawbacks | Requires adapting the software to meet the specific needs of different countries (e.g., language, currency). Increased costs associated with marketing, distribution, and customer support in new countries. Potential for political and economic instability in target countries. |
2. Selling to Consumers Directly (B2C): This involves making the software available for purchase by individual consumers, rather than just businesses.
| Cell | Details |
| Benefits | Access to a potentially very large market. Higher profit margins compared to selling to businesses. Opportunity to build a direct relationship with customers. |
| Drawbacks | Requires significant investment in marketing and customer support. Increased competition from other software providers. Need to adapt the software to be user-friendly for non-technical users. |