ACKNOWLEDGEMENT

I am overwhelmed in all humbleness and

gratefulness to acknowledge my depth to all those
who have helped me to put these ideas well above
the level of simplicity into something concrete.
I would like to express my special thanks of
gratitude to my teacher who gave me the golden
opportunity to do this wonderful project on the
topic business environment and first mover
advantage which help also helped me in doing a lot
of research and I came to know about so many new
things I am really thankful to them any attempt at
any level can’t be satisfactorily completed without
the support and guidance of my parents and
friends I would like to thank my parents who
helped me a lot in gathering different information
collecting data and guiding me from time to time in
making this project.
 BUSINESS ENVIRONMENT

Businesses are impacted or affected by several

forces they might be external or internal to them
i.e., specific and general forces, which are beyond
its control. Economic, social, political, technological
and etc, are included in these forces. All these
forces are combined in business environment. A
firm should always keep up with its business
environment, as its dynamic, relative, and
uncertain.
So, business environment is not static its keep on
changing time to time. It can be different or can
differ place to place and no one can predict it.
Business environment is universal or pervasive.
every enterprise, whether large or small,
manufacturing or trading, has to face environment
forces, at all time. No business can function in
isolation of its environment.
In a business environment there are several people
who have stake or are interested in its functioning
and performance. Like suppliers, employees,
government, investors, media, etc.
 IMPORTANCE OF BUSINESS
ENVIRONMENT

As said above there are several forces or factors

that affect business, this factor differs in types and
degree of its influence. A factor that has favorable
impact over one firm might have adverse or severe
effect on another firm. There for management of
business enterprise should have deep
understanding and appreciation of the
environment. The changes taking place in business
environment should be continuously monitored to
judge their impact on business. Appropriate and
timely steps should be taken to face the
environmental changes.
The survival and success of any business or
enterprise depends upon its inherent capabilities
and its ability to adopt to the changing
environment. Firms ability or capabilities are refer
to their finance, human resource, their plans etc.
Firm which fails to adapt themselves with
environment are unlikely to survive in long run.
A business can obtain such knowledge through
environmental scanning. Environmental scanning is
the process by which organization monitors their
relevant environment to identify the opportunities
and their threats affecting their business. An
enterprise can consider the impact of different
events, trends, issues, expectation on its business
operations. Firm which systematically analyse and
diagnose their business environment are more
effective than those who do not.

Some importance of business environment are –

1. First mover advantages

Proper environmental scanning can help business
to see opportunities in market instead of loosing
them to competitors. They can take advantage of
these opportunities an grab lead in the market.
Being the first in the market means that you can set
the standards for the industry an establish a
dominant market share. Since you’ll be first in the
market, you will also have the advantage when
setting prices. Early entrants have the ability to
potentially charge higher prices due to the lack of
competition, which could result in higher profit
margins.

2. Early warning signals

Awareness of environment can help business judge
upcoming threats and crisis, so that firm can be
ready with plans and preventions to minimize the
effect of threats. For example, if any multinational
company enter Indian market than firms of that
sector should take some measures like improve
more customer service, more advertisement etc.

3. Business strategies
The study of environment enables businesses and
organization to analyse its competitors’ strategies
and there by formulate effective counter strategies.
In order to grab market share from the
competitor’s company have to take right decisions
on right time. Business environment provides
relevant information which serves as the base of
strategy making.

4. Competitive advantages
In every industry there are threats of new entrants
and substitute products. To survive and grow in
market its necessary for a firm to compete withs its
competitors. Competitors grab market share of
firm. With entry of new firms, price wars begin and
ultimately profitability decreases.

So, firm should study its environment so can take

some precaution to avoid competition. Pricing
policies, marketing, customer services etc. can
prevent competition.
 5. Customer needs and confidence
Business should produce goods according to
customer needs and demand. Firm should fill the
gap between demand and supply of its consumer.
From these customer confidence increases. The
product should match exactly to customers
aspiration these helps to customer satisfaction and
ultimately to retain customers.

Customers demand can be recognized through

market research and environmental scanning.

6. Public image
Public image is the ultimate reason of marketing,
business goodwill is intangible assets for the firm.
Firm can create good will by providing quality good
at reasonable price, providing after sales services,
quality advertisements, giving donations and work
for social cause.
Leading business hub like Tata, Ambani, Adani and
other have built good public image through their
support to schemes of public welfare through
corporate social responsibilities.

7. Keeping pace with consumerism

In the market consumer have to be treated as king,
if they are not then goodwill and market share of
firm can be affected. Main motive of consumerism
is right of consumers. Consumerism requires
business firms to be increasingly sensitive to the
expectation of consumers, otherwise survival and
growth of the firm can be in danger. Study and
understanding of changing needs, preferences and
aspirations of customer helps business enterprise
to avoid such dangers.
 FIRST MOVER ADVANTAGE OF TATA
MOTORS

Tata Motors limited is an Indian multinational

automotive manufacturing company,
headquartered in Mumbai, India which is part of
Tata group. The company produces passenger cars,
Vance, coaches and buses.
In 1998, tata launched the first fully indigenous
Indian passenger car, the indica, and in 2008
launched the tata nano. Tata Motors acquired the
South Korean truck manufacturer Daewoo
commercial vehicles company in 2004. Tata motor
has been the parent company of Jaguar Land Rover
since the company established it for the acquisition
of Jaguar cars and Land Rover for from the Ford In
2008.
Tata motors in 2019 launched its first electric
vehicle. Tata motors saw upcoming opportunity,
advantage and environmental benefit started
manufacturing EV cars. Electric vehicle adoption
has seen in rise in recent past, but that’s no
surprise given the ever-rising prices of
conventional fuels. Tata Motors, operating at the
affordable end of the spectrum, has been there to
take advantage of the situation and currently has
an unprecedented lead in the EV space .

Tata motors which now has three EVs on sale –

the Nexon EV, Tigor EV, Tiago EV – has an
overwhelming 85.53 percent market share with
15,518 units. This makes for a monthly average of
2,586 units. The company had sold a total of
19,105 units in FY2022 – its first-half FY2023 tally
is already 81 percent of that.
Tata, which is gunning for overall passenger
vehicle sales of 5 lakh unit this fiscal, is hoping that
EVs account for 10 percent of that – at present, it
is 34,482 units shy of that target with six months
to go this financial year. The recently launched
Tiago EV, which is India’s most affordable electric
car currently on sale, could help improve those
numbers from January 2023.
FIRST MOVER ADVANTAGE OF BHARAT
PAY

Though BharatPe was entering a competitive space

with the likes of Paytm and PhonePe, the company
had a clear differentiation. At the time when
BharatPe was trying to raise seed money in 2018,
Paytm and PhonePe were already at a valuation
of $15Bn and $10Bn, respectively.
BharatPe simplified the process of accepting
payments from customers for merchants running
small and medium businesses.
The company rolled out one of a kind interoperable
offline UPI QR.

It grabbed the opportunity created by the

government’s initiative for improving payment
acceptance infrastructure and the launch of BHIM-
App. BharatPe reached 50% market share in offline
UPI transactions, surpassing the Government’s
BHIM.

Consumer-focused payments companies like

Walmart-owned PhonePe, Amazon Pay and Paytm
were focused on payments to happen on their
closed network. For example, PhonePe users can
only use apps with customers and merchants who
also use PhonePe.

If you visit a grocery store near you, the chances

are that you’ll see at least 5 different QR codes to
cater to different user preferences or you’ll see just
one QR code made by BharatPe. For the
shopkeeper, it’s cumbersome to keep 5 different
accounts with different companies to accept
payments online.

What BharatPe did is that it made a single QR code

sticker through which merchants can accept
payment from 150+ UPI apps, directly and
immediately in their bank accounts, without a
delay, And that too for zero fees.

All payment companies were trying to plaster their

QR codes on the shops.

Challenged by BharatPe – PhonePe launched

interoperable QR codes in January 2019 and was
signing up merchants fast. Paytm was also
testing interoperable QR code for merchants.
At that time, BharatPe did 0.1M transactions/day
as against 0.2M transactions per day by PhonePe.