Competitive Environment
Uploaded by
Md. Musfiqur RahmanCompetitive Environment
Uploaded by
Md. Musfiqur RahmanSparkling
Presented By:
Tamimul Haque Arpon Md. Musfiqur Rahman Alif
ID No: 16102062 ID No: 16102072
Nahida Akter Tasbir Mohammad
ID No: 16102073 ID No:16102076
Nusrat Jahan Nabila MD.Asasuzzaman
ID No: 16102086 Id 16202902
Competitive environment
The Topic is
COMPETITIVE ENVIRONMENT
A competitive environment is the
dynamic external system in which a
business competes and functions.
The more sellers of a similar product
or service, the more competitive the
environment in which you compete.
Look at fast food restaurants - there
are so many to choose from; the
competition is high.
Competitive Situation
The standing of an organization in
its markets, relative to its
competitors, when all players are
described in terms of their size,
resources, capabilities, product
range and quality, marketing
strategies, opportunities, goals,
intentions, behavior and similar
variables.
Regulatory Elements
A small business's ability to compete and the environment
in which it attempts to make a profit can be greatly affected
by government regulations and professional licensing
demands.
For example, a spa's competitive environment can be
altered if a state enacts regulations stating that all massage
therapists must meet the same licensing demands as a
cosmetologist.
Direct Competitors
In a healthy market economy, the competitive environment
is filled with direct competitors. These include everyone
who is in the same business. Within an industry, all
businesses that offer the same
products and services are in
direct competition.
For example, anyone who
sells electronics is a direct
competitor with other sellers
of electronics.
Indirect Competitors
Indirect competitors are those that are not the exact
same type of business but are competing for the
same consumer dollar. They may belong to the same
industry, though that isn't a requirement.
For example, A fast food restaurant is in indirect
competition with a buffet restaurant.
Social and Technological Trends
Often, the competitive environment of a small business is
altered because of changes in technology or the way that
people purchase products.
For example, Amazon.com changed customer expectations and
the way that businesses distributed products.
Four Factors Of Competitive
Environment
1. Competition
2. Customer Expectations
3. Project Budget
4. You
Under the pressure of deregulation, utilities are diversifying
into the systems integration business. Manufacturers
attempting to develop a competitive advantage are
establishing direct offices. it is imperative that you study your
competition. Get to know their product offering, market
penetration, strategic positioning, and pricing history.
Customer Expectations
It is important to understand a
customer’s expectations for
quality and service. Some
customers are very price-
sensitive while others are more
conscious of quality. Some
customers are less concerned
with price as long as the service
they receive is impeccable.
Project Budget
Customers are famous for getting
contractors excited about an
opportunity, only to explain
down the road that their
enthusiasm is not supported by
their pocket book. If you are
aware of the budget, it makes
you more valuable to the
customer.
you
Customers are famous for getting
contractors excited about an opportunity,
only to explain down the road that their
enthusiasm is not supported by their
pocket book. If you are aware of the
budget, it makes you more valuable to
the customer.
Advantages
Price - Higher competition level mean businesses have less influence on
making prices higher. Lower for consumer.
Quality - High competition means businesses need to compete on quality
of the goods and services so they do not lose customers to
competitors.
Choice - More businesses providing products mean consumers have a
wider range to choose from.
Efficiency - High competition forces businesses to be efficient and remain
competitive.
Disadvantages
Companies may partake in bad practices and can lead to disadvantages
of high competition levels such as :
Increased pollution
Unfair trade
Social & ethical issues like child labor & bad working conditions.
High risk of unemployment
High risk of unemployment
Competition is beneficial for consumers
as the businesses need to keep improving
by producing high quality goods at a
lower price so they can gain more sales
than rivals.
Thank You for Your Time
