AQA AS BUSS1/BUSS2 help

I have a couple of questions for BUSS1 and BUSS2 of AQA AS.


Is it advisable to quote the case study to draw attention to application?


With analysis, is it advantageous to make generic links to market share, competitiveness and revenue?


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January 2011 Unit 2 Q1d


Do you agree with Shearings' decision to move into the mass market for holiday services? Justify your decision.


Mass market is a place where buyers and sellers meet, encompassing a large range of buyer demographics.


Mass market better because initial trials of 'Coast and Country Hotels' have returned successfully. This demonstrates that targeting a 'wider age group' is a viable move. Moreover, Shearings is a very large firm with revenues as high as £182m - with such high inflows, expansion is a decent option. Economies of scale will mean that Shearings has greater risk-bearing power, allowing this move to take place under more comfortable circumstances. With less threatening risks and the intuitive potential for much more revenue, this will allow Shearings to gain greater market share and meet business objectives.


Current market better as they are already successfully operating in a 'highly competitive market'. If they were to move into the mass market, Shearings would face many more threatening competitors with experience ahead of them - meaning that failure is likely. Moreover, with nearly 30% of the population being over 55 predicted in 2016, Shearings already has a wide audience - Shearings should use their expertise in this area to create a brand in a market they already have an 'excellent reputation' in. Their current market is a growing resource which will allow for expansion and increased market share.


Shearings should stay in the niche market. It ultimately depends on the risk of failure and wasted expenditure. Whilst entering the mass market might work in the short term, competitor experience is likely to overtake Shearings - whereas the niche market is growing and will be a reliable long term strategy. The opportunity cost is also great - leaving the niche market might alienate their previous market and lose their 'excellent reputation'. The niche is aimed for safe success and is more likely to serve the Shearings brand well.






Can I have some pointers on what I should be including/improving in my answers please?