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Describe a competitive relationship and a co-operative relationship between two producers in the same line of business - Leaving Cert Business - Question A - 2008
Question A
Describe a competitive relationship and a co-operative relationship between two producers in the same line of business. Use appropriate examples to support your answ... show full transcript
Worked Solution & Example Answer:Describe a competitive relationship and a co-operative relationship between two producers in the same line of business - Leaving Cert Business - Question A - 2008
Step 1
Describe a competitive relationship
Answer
A competitive relationship between two producers in the same line of business occurs when each producer pursues different objectives while striving to gain an advantage over the other. This competition forces businesses to enhance their products or services to meet consumer expectations effectively.
For example, two businesses that manufacture smartphones may compete on aspects such as price, quality, or features. If Company A reduces the price of its smartphones while increasing the quality, Company B may need to adjust its strategies to retain its market share, thereby benefiting consumers through better options.
Step 2
Describe a co-operative relationship
Answer
A co-operative relationship between producers exists when they collaborate toward a common goal or mutual benefit. This relationship often involves joint efforts aimed at addressing shared challenges or enhancing business opportunities.
For instance, two local farms may collaborate to lobby for government support or to create a marketing campaign promoting local produce. By working together, these farms can pool resources, share knowledge, and ultimately benefit from increased consumer awareness and sales, thus helping the local economy.