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Question - Mr john oka runs a bakery in kiambu town and has employed three members of staff to assist him. Mr John operates the business strictly on cash basis. This has lead to some of his customers buying their bread elsewhere. Mr John oka believes that because he bakes high quality bread, he does not require to advertise his business or employ a salesperson. Two more bakeries have been set up in town. Customers have complained that mr John oka only bakes bread of one size, he does not bake scones or cakes and his output does not meet the demand. Competitors have taken note of this product lines. Mr John okas business has started to record lower sales and reduced profits.
Required -
A) Explain five reasons for the reduced sales volume and profit of John Okas business.
B) Highlight five strategies that Mr John Oka may implement to cope with competition to improve the performance of his business.
C) Describe five benefits that may accrue to an entrepreneur from competition.
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