Question

In an environment of rising petroleum prices and a large middle class population in india, KV Motors Ltd. Recognized the need for small cars in India. It created a product far superior than their competitors not only in terms of quality but also in terms of overall driving experience. It soon became the leader in the small car market. As the Indian government was encouraging foreign investment, MNCs having a big name in car manufacturing entered the Indian Market.
KV Motors further expanded its service network and quality creating an entry barrier for the competitors. It depicted its strength through various brand building activities. AS a result, the market share of KV Motors is refusing to go down in spite of all major automakers as its competitors. 4M
Identify the economic reforms highlighted in the above case.
Quoting the lines, explain any two points of importance of Business Environment being highlighted in the above case.​

Answer 1

Answer:

economic reforms highlighted in above case :-

globalisation :- Indian government encouraging foreign investment

two importance of business environment

a. getting the first mover advantage :- it was first company realised the need of car amongst middle class people

b. early warning signal :- with the entrance of of MNCs it expanded it service network and quality created a barrier for MNC