Syllabus: OCR - GCSE Economics
Module: 2. The Role of Markets and Money
Lesson: 2.5 Competition

Introduction

This article is built around OCR’s GCSE (9–1) Economics J205 specification, specifically section 2.5 Competition, under “The role of markets and money” component. Designed to support teachers, curriculum leads, and careers coordinators, it offers clear guidance on delivering this topic in real classrooms. Whether you’re looking for teaching clarity, assessment focus, or ways to tie economics to the world of work, this guide will help you deliver lessons that stick.

Key Concepts

According to the OCR specification, students need to:

• Explain competition between producers in a market economy and why producers compete (e.g. price, quality, innovation).

• Analyse how competition affects price, including downward pressure and improved choice for consumers.

• Evaluate the impact of competition on producers (e.g. lower profits, innovation pressure) and consumers (e.g. better service, lower prices).

• Understand monopoly and oligopoly, and how they contrast with competitive markets in terms of consumer choice, pricing, and barriers to entry.

Real-World Relevance

The real-world implications of market competition are all around us:

• Supermarkets in the UK (e.g. Tesco vs. Aldi vs. Lidl) frequently compete on price, location, and customer service. This has driven price wars, loyalty schemes, and new formats like “Just Walk Out” tech.

• Streaming services such as Netflix, Disney+, and Amazon Prime compete through content exclusivity and subscription models—raising issues around consumer lock-in and oligopolistic behaviour.

• Mobile phone providers like EE, O2 and Vodafone offer bundled deals, discounts, and flexible contracts. These are prime case studies in how competition affects pricing and consumer choice.

• Teachers can encourage students to track examples in the media and link them to how competitive pressures change business decisions.

How It’s Assessed

OCR assessments for this topic use a range of question types:

• Short-answer questions (e.g. “Explain two reasons why firms compete”).

• Data-response questions involving real-world context and charts.

• Analyse and Evaluate command words are commonly used. For example:

  • Analyse how competition affects consumer choice.

  • Evaluate the impact of monopolies on consumer prices.

Students may be asked to interpret market scenarios, draw comparisons between competitive and non-competitive markets, or assess impacts on different stakeholders. Diagrammatic responses are often expected when discussing market structures.

Enterprise Skills Integration

This topic is ideal for integrating problem-solving, decision-making and commercial awareness—core competencies in Enterprise Skills simulations:

• In our Business Simulations, students model how competing businesses choose pricing strategies, invest in marketing, and respond to rivals—just like real firms.

• Students learn by doing: navigating choices around market entry, pricing under pressure, or investing in product development, all while managing risks and assessing outcomes.

This reinforces economic theory while building confidence in applying it practically—a must for embedding long-term understanding.

Careers Links

Teaching competition ties directly into Gatsby Benchmarks 4, 5 and 6:

• Business and economics careers: Market analysts, economists, pricing strategists, brand managers.

• Real workplace relevance: Students learn how companies make real decisions in competitive environments—ideal for preparing them for roles in retail, marketing, entrepreneurship, or finance.

• Our simulations provide a Gatsby-aligned experience by replicating real business scenarios without needing external placements.

Teaching Notes

Practical tips:

• Start with a real example: Have students compare their experiences shopping at different supermarkets or choosing streaming services.

• Use role-play: Divide the class into rival companies competing in a mock market—who wins the most customers?

• Diagram practice: Embed supply/demand and market structure diagrams into lessons early to prepare students for written responses.

Common pitfalls:

• Oversimplifying competition as “good for everyone”—use evaluation prompts to explore disadvantages for producers and risks of ‘race to the bottom’.

• Confusing market types—monopoly vs. oligopoly vs. competitive market—students often need repeated, visual scaffolding to distinguish these.

• Neglecting stakeholder impact—remind students to consider both consumer and producer views in analysis and evaluation.

Extension ideas:

• Introduce Enterprise Skills simulations to let students manage a business in a live, competitive environment.

• Encourage research projects on how major UK firms respond to market competition using recent news articles.