Business Management

Business Management

Question 1

Increased competition in the industry is a threat for the businesses that operate in that market. Often it becomes difficult for the firms to survive the competition and maintain their market share. Companies may lose their customers to their rivals thus they need to make efforts on continuous basis to ensure that they gain competitive advantage over their rivals. Competition imposes threat on these businesses for sustaining their business. However competition is favorable for the consumers as it motivates companies to make efforts for providing better quality to the customers at a lower price with the aim of competing with their rivals.

Business, in which competition has become intense in the last five years, is the mobile phone industry. Since the users of cell phones are increasing rapidly more companies are emerging in the market, numerous companies have developed products that target the needs of customers for mobile phones. Every company tends to offer certain features that would distinct the product from other company's products. With rapid advancement in technology the market has become even more competitive. Mobile phone companies that may include Nokia, Samsung, LG and many others need to monitor their external environment on a continuous basis in order to update their production process for incorporating the changes required in the company in accordance with the changes in the external environment. The industry has become more competitive over the last five years since there are few barriers to entry in the market, thus making it easier for others to enter the market. Competition has also increased as international markets have also developed over the passage of time, capturing much of market shares.

Question 2

There are different competitive strategies that allow companies to have competitive advantage over their rivals and capture larger market share for maintaining their sustainability and survive in the market successfully for achieving growth. Businesses are available with numerous competitive strategies for enabling them to remain competitive. Companies can adopt a best cost provider strategy, in order to compete in the industry companies can have cost effective strategies that would emphasis on eliminating processes that adds to the cost of production and are not necessary for production of the good therefore resulting in waste. They should compete on providing the good at a lower cost to the customers and providing customers the value for money. However in order to provide the good at good ...