Krishna Furnishers Mart started its operations in the year 1954 and emerged as the market leader in the industry because of their original designs and efficiency in operations. They had a steady demand for their products but over the years, they found their market share declining because of new entrants in the field. The firm decided to review their operations and decided that in order to meet the competition, they need to study and analyze the market trends and then design and develop their products accordingly. List any two impacts of changes in the business environment on Krishna Furnishers Mart’s operations. (Hint: an increase in competition and Market orientation).
The two impacts of changes in the business environment on Krishna Furnishers Mart’s operation are:
a. a. Increased competition- the competition for Indian firms has greatly increased due to the result of liberalization, privatization, and globalisation. Krishna furniture Mart is also facing it because of the expansion of the current market scenario.
b. b. Market orientation- Krishna furniture mart earlier produced goods and then sold in the market later. This was a production-oriented market setup. Now the focus has changed to the concept of customer is King. The company now has to analyze the market and understand the needs of the customers and accordingly design its products