School uniform price war – Competition revision

Tesco has triggered a school uniform price war by introducing a summer long deal of £3.75 for a full school uniform. The offer has arrived one day after Asda unveiled a £4.75 range. This is a great example of using price to compete. If you’re a business studies teacher you could also use this as an example of a loss leader as profit margins are likely to be wafer thin. Click read more for some GCSE style questions.

Price is one way in which companies compete. Explain using examples three other ways that firm’s compete. (6 marks)
To what extent do supermarkets operate in a competitive market? (4 marks)
Do consumers benefit from competitive markets? Give reasons for your answer. You should refer to the food retailing market (8 marks)