Increased competition generally benefits consumers in several ways. Firstly, it often leads to lower prices. Businesses are incentivised to reduce their prices to attract customers from competitors. This price competition ultimately passes on to the consumer. Secondly, competition encourages improved quality of goods and services. Businesses strive to differentiate themselves by offering higher quality products, better customer service, and innovative features. This benefits consumers by providing them with more choices and a better overall experience. Thirdly, increased competition can lead to greater innovation. Businesses are constantly looking for new ways to improve their products and services to gain a competitive edge. This innovation benefits consumers by providing them with access to new and improved products and services. Finally, consumers have more choice. A competitive market offers a wider range of products and services to meet diverse needs and preferences.

The statement that the rise of e-commerce has led to increased competition in the retail sector is largely true. E-commerce platforms like Amazon, eBay, and Shopify have dramatically lowered the barriers to entry for new retailers. Previously, establishing a retail presence required significant investment in physical stores, staff, and distribution networks. E-commerce allows businesses, both large and small, to reach a global customer base with relatively lower startup costs.

Examples:

• Smaller independent retailers can now compete with large established chains by selling online. For example, a local artisan could sell their crafts globally through Etsy.
• Global giants like Amazon have disrupted traditional retail by offering a vast selection of products at competitive prices. This forces traditional retailers to adapt and improve their online offerings.
• New business models, such as direct-to-consumer (DTC) brands, have emerged, bypassing traditional retail channels and offering products directly to consumers online. This increases price competition.

The increased competition resulting from e-commerce has forced retailers to focus on factors like price, customer service, and product innovation to remain viable. It has also led to a more dynamic and rapidly changing retail landscape.

Market Share = (Company Revenue / Total Market Revenue) x 100

Here:

• Company Revenue = £750,000
• Total Market Revenue = £5,000,000

Market Share = (£750,000 / £5,000,000) x 100 = 0.15 x 100 = 15%

Answer: FashionForward's market share in terms of revenue is 15.00%.