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6 (a) State one market segment that On Your Bike has targeted - Edexcel - GCSE Business - Question 6 - 2020 - Paper 1
Question 6
6 (a) State one market segment that On Your Bike has targeted. (b) Outline one impact on On Your Bike of an increase in the value of the pound. To expand its busin... show full transcript
Worked Solution & Example Answer:6 (a) State one market segment that On Your Bike has targeted - Edexcel - GCSE Business - Question 6 - 2020 - Paper 1
Step 1
Step 2
Outline one impact on On Your Bike of an increase in the value of the pound.
Answer
An increase in the value of the pound against other currencies means that imports will become cheaper. This will allow On Your Bike to reduce costs when sourcing bikes from abroad, which may lead to lower prices for customers.
Step 3
Justify which one of these two options On Your Bike should choose.
Answer
On Your Bike should choose to start using e-commerce on its website.
Reasons for Choosing E-commerce:
- Market Reach: E-commerce would allow On Your Bike to reach a broader audience beyond their immediate geographical area, increasing potential sales.
- Cost Efficiency: Operating an online shop tends to be less expensive than maintaining a physical location, especially if the second shop requires significant investment.
- Consumer Trends: More consumers are shopping online, especially for goods like bikes, making this a timely option to ensure competitiveness in the market.
- Flexibility: E-commerce offers more flexibility in terms of managing stock, promotions, and customer engagement compared to a physical store.
Conclusion:
Given the current trends in consumer behavior and business efficiency, opting for e-commerce aligns better with growth potential and cost-effectiveness compared to opening a second shop.