Explain increasing competition and more demanding customers as impact on business and industry
Answers
Explanation:
Increasing competition: Government policies have enabled co-existence of government sector companies with private companies and compete fairly, leading to increasing competition.
More demanding customers: Government policies leading to economic libralisation allow consumers to become well-informed, increase their purchasing power (through rising incomes) and change their lifestyle, which makes them more demanding about quality and value-driven products/services.
Answer:
Explanation:
Increasing competition
As a result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased especially in service industries like telecommunications, airlines, banking, insurance, etc. which were earlier in the public sector. As a result of the policies such as relaxation of the licensing policy and decrease of import duties, the competition faced by the home firms increases.
More demanding customers
Customers today have become more demanding because they are well-informed. Increased competition in the market gives the customers a wider choice in purchasing better quality of goods and services.