Question

You are opening a smoothie bar, identify the following:

• Your business market: Blank 1 .
• Provide a specific example for each resource category required to start this type of business: Blank 1, Blank 2, Blank 3, Blank 4 .

1 answer for buisness market and 4 for 2nd bullet

Answer 1

There are mainly four types of business market approaches-

Perfect competition

Monopolistic competition

Oligopoly

Pure monopoly

For starting a 'smoothie bar' business, the type of business market can be Monopolistic competition. In this type of business market the firms sell similar but highly differentiated products. Their products can be differentiated in the terms of advertisement, packaging, pricing strategies, location, style and brand name. Here the firms can set their own prices for their products.

In smoothie bar business, differentiation of the product (different types of smoothies) can be in terms of-

Different pricing strategies- There are many pricing strategies which can be used for setting up the price.

Advertisement- Advertisement can be done through various platforms of social media.

Location- Where there is easily access to factors of production and where the demand is more for the product( this can be done through market analysis)

Style- Style of serving which can attract customers and attractive menus.

Brand name- Attractive brand name can be set.

Specific example for each resource category required to start this type of business-

These are four factors of production-

Land, labour, capital and entrepreneurship.

Land- As we have to start a smoothie bar, we can buy a place on rent to carry our operations, this will include in the 'land'.

Labour- Hiring people so that the business can be carried on smoothly, like friends, unemployed people looking for the job.

Capital- Here in our business capital will be various juicing machines, equipment for cleaning machines, cash registers and computers, menus etc.