Ravi’s small production unit was affected by rising competition in the following ways

(a) His customer base have shrunk as they are using MNCs product, which doesn’t use capacitors produced by Ravi’s unit.

(b) Due to removal of import duties on capacitors, demand for capacitor from Ravi has taken a hit, which has in turn reduced his production and sales.

(c) Owing to decreased sale, Ravi is suffering loss which may eventually make him shut his manufacturing unit.