Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.
Which ONE of the following would improve the competitiveness of BMF against other local music shops?
Select ONE answer:
- Offering advice on rare records
- Reducing opening hours
- A new competitor opens in the local area
- Advertising on national television
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 1:
- Offer advice on rare records – is correct because giving advice on rare records enables MME to compete with other music shops that do not offer this service.
- Reduce opening hours – is not correct because it reduces the opportunities for the customer to buy.
- A new competitor opens in the local area – is not correct because a new competitor would reduce the competitiveness of MME.
- Advertise on national television – is not correct because national television would not be appropriate for local music shops.
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