Explain the factors that have influenced the changes in the competitive

environment.
Trade globalization is a type of economic globalization and a measure (economic
indicator) of economic integration. On a national scale, it loosely represents the
proportion of all production that crosses the boundaries of a country, as well as the
number of jobs in that country dependent upon external trade. On a global scale, it
represents the proportion of all world production that is used for imports and
exports between countries
For an individual country, trade globalization is measured as the proportion of that
country's total volume of trade to its Gross Domestic Product (GDP)
Trade globalization declines corresponding to wars and economic depressions, and
that there has been a steady trend over the centuries for trade globalization to
increase
When consider trade globalization number of system involving in today
competitive environment such as
Global financial system
International marketing
International trade
Internationalization
Economic communities

 Free trade agreements

When consider above system mainly involving in creating the competitive

condition in today business world. Today we are used different financial
transection to do businesses and used different money such as dollar, euro rupees,
which automatically create the competitive environment.
When consider the international trade produced different product that product
mainly come to the market then create the high competition. Today recourses are
limited and competition high.
Today different country have free trade agreement that agreement help to
exchanging commodities one country to another country and different country
people can invest money to another country and they can develop a business that
businesses create high competition in business world
Privatization is the process of transferring ownership of a business, enterprise,
agency, public service, or public property from the public sector to the private
sector, either to a business that operates for a profit or to a nonprofit organization.
It may also mean the government outsourcing of services or functions to private
firms
There are four main methods of privatization:
1. Share issue privatization -selling shares on the stock market.
2. Asset sale privatization - selling an entire organization (or part of it) to a
strategic investor.

3. Voucher privatization - distributing shares of ownership to all citizens,

usually for free or at a very low price.
4. Privatization from below - Start-up of new private businesses in formerly
socialist countries
When privatizing the government organization, competitive industries with
well-informed consumers, privatization consistently improves efficiency. The
more competitive the industry, the greater the improvement in output,
profitability, and efficiency. Such efficiency gains mean a one-off increase
in GDP, but through improved incentives to innovate and reduce costs also tend
to raise the rate of economic growth. Although typically there are many costs
associated with these efficiency gains, many economists argue that these can be
dealt with by appropriate government support through redistribution and
perhaps retraining. Main objects of privatization
Increase Performance
Increased efficiency
Minimize Corruption
Accountability
Achieving economic goal
High Capital
Lack of market discipline
Natural monopolies

 Concentration of wealth
Job gains
Deregulation is the process of removing or reducing state regulations
typically

in

the

economic.

It

is

the

undoing

or

repeal

of

governmental regulation of the economy. It became common in advanced

industrial economies in the 1970s and 1980s, as a result of new trends in
economic thinking about the inefficiencies of government regulation, and
the risk that regulatory agencies would be controlled by the regulated
industry to its benefit, and there by hurt consumers and the wider economy.
The stated rationale for deregulation is often that fewer and simpler
regulations will lead to a raised level of competitiveness, therefore higher
productivity, more efficiency and lower prices overall. Opposition to
deregulation may usually involve apprehension regarding environmental
pollution and environmental quality standards (such as the removal of
regulations on hazardous materials), financial uncertainty, and constraining
monopolies. Most of the country deregulation were done in various industry
such as
Natural gas is deregulated in most of the country
The province of Ontario began deregulation of electricity
supply in 2002
The province of Alberta has deregulated their electricity
provision
The taxi industry was deregulated in Ireland leading to an
influx of new taxis
2003 Corrections to EU directive about software patents

 Deregulation of the air industry in Europe in 1992 gave carriers

from one EU country the right to operate scheduled services
between other EU states

This is the stage where a product is conceptualized and first brought to market. The
goal of any new product introduction is to meet consumers' needs with a quality
product at the lowest possible cost in order to return the highest level of profit.
Product life cycle mainly 3 stage, growth, maturity, and decline.
The growth phase occurs when a product has survived its introduction and is
beginning to be noticed in the marketplace. At this stage, a company can decide if
it wants to go for increased market share or increased profitability. This is the
boom time for any product. Production increases, leading to lower unit costs. Sales
momentum builds as advertising campaigns target mass media audiences instead of
specialized markets (if the product merits this). Competition grows as awareness of
the product builds. Minor changes are made as more feedback is gathered or as
new markets are targeted. The goal for any company is to stay in this phase as long
as possible.
At the maturity stage, sales growth has started to slow and is approaching the point
where the inevitable decline will begin. Defending market share becomes the chief
concern, as marketing staffs have to spend more and more on promotion to entice
customers to buy the product. Additionally, more competitors have stepped
forward to challenge the product at this stage, some of which may offer a higher-

quality version of the product at a lower price. This can touch off price wars, and
lower prices mean lower profits, which will cause some companies to drop out of
the market for that product altogether. The maturity stage is usually the longest of
the four life cycle stages, and it is not uncommon for a product to be in the mature
stage for several decades.
This occurs when the product peaks in the maturity stage and then begins a
downward slide in sales. Eventually, revenues will drop to the point where it is no
longer economically feasible to continue making the product. Investment is
minimized. The product can simply be discontinued, or it can be sold to another
company. A third option that combines those elements is also sometimes seen as
viable, but comes to fruition only rarely.
E-business (or electronic business) is the term used to describe using the internet to
operate your business. E-business represents only a fraction of worldwide business,
but is one of the fastest growing sectors and provides entrepreneurs with excellent
opportunities to enter the market
For example, a successful shop front business may decide to create a website to
promote their business but not actually sell products directly through the internet.
Almost all businesses are now an e-business to at least some extent, however,
many have taken a step further and are involved with e-commerce
E-business makes it easier, faster and cheaper for businesses to communicate with
their suppliers and their customers
The increases in technology and falling prices also provide online businesses with
a steady stream of new customers as more people move online to shop for products

and services. Cost and access is becoming less of a barrier for consumers and
people are becoming increasingly comfortable with making purchasers online.
Above all reasons mainly influencing create competitive environment in today
business world.