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III. Answer the following questions to the text.

  1. What is competition?

  2. What do all companies try to gain? Why?

  3. May competition lead to increased costs?

  4. How many levels of economic competition have been classified?

  5. What is direct competition?

  6. What is indirect competition?

  7. What competition is the broadest?

IV. Read about the Coca-Cola Japan Company and then work in pairs and discuss the market in your country.

Japan is one of the most competitive soft drinks markets in the world. There are more than 7000 different soft drinks on the market and 500 different soft drinks manufacturers. The Coca-Cola Japan Company is the market leader and its product range in Japan includes more than 25 brands and flavours.

  1. How many brands of soft drinks can you name?

  2. How many manufacturers can you name?

  3. Who are the market leaders or main competitors?

  4. Is the soft drinks market very competitive?

  5. What can companies do to persuade customers to buy their product instead of another similar one?

  6. What is the biggest company in your country?

  7. Who are the main competitors in the market in the following sectors?

sportswear fashion cars telecommunications computers

V. Match the words and expressions on the left to the definitions on the right.

1 open market a the company that has got the largest amount of

business in an area

2 market share b an expensive/luxury image

3 market leader c an area of business where there is free

competition

4 global market d a low-status image

5 enter new market e to begin doing business in new areas

6 upmarket f the amount of business a company can get

7 downmarket g the international business place

VI. Use one of the words or expressions from exercise V to complete the gaps in this text.

Georgio Pujol works for F&D Chemicals which is a British company that supplies chemicals to cosmetics companies. F&D is the 1) _________________ in its business in the UK because it supplies very high-quality products at the lowest cost. The company has increased its 2)____________ over the last eight years, since Georgio joined the firm, by nearly 30 %. In order to carry on expanding its business the firm is going to try to 3)_______________ . It is going to begin business in France where it is going to try to sell its products to the big French cosmetics companies. These firms are more 4)____________ than F&D’s British customers so it might be difficult.

VII. Georgio Pujol is in France on a marketing and research trip for f&d Chemicals. This is a list of the things he must do this week.

Things to do Done

1. Give presentations at:

a) L’Oreal +

b) Yves Saint Laurent

2. Visit Mrs Smith

3. Find office in Paris +

4. Interview French distribution companies

5. Sign contracts with French

a) lawyers +

b) accountants

Now use the information in the list to writer questions and answers. Remember to include articles and prepositions in your questions. The first one is done as an example.

1a Q Has he given a presentation at L’Oreal?______________________

A Yes, he has.____________________________________________

1b Q ______________________________________________________

A ______________________________________________________

2 Q ______________________________________________________

A_______________________________________________________

  1. Q _______________________________________________________

A _______________________________________________________

4 Q _______________________________________________________

A _______________________________________________________

5a Q _______________________________________________________

A________________________________________________________

5b Q _______________________________________________________

A _______________________________________________________