After obtaining higher education in the United States, Ms. Chetna returns to India to start a new business named Revelations Ltd. and launches a new product which is already established in United Kingdom, Germany, United States, and Sweden but not in India. She recognises the need for that product in India by modifying and changing in terms of the consumers' needs in India and gets recognition. After seeing her success, more Indian companies try to enter the market with new substitutes.
(i) Which advantage or benefit of understanding the business environment is indicated while seeing the success of Revelations Ltd.?
(ii) As more companies enter into the market with new substitutes, which advantage of understanding the business environment do you think is applicable and how?
After obtaining higher education in the United States, Ms. Chetna returns to India to start a new business named Revelations Ltd. and launches a new product which is already established in United Kingdom, Germany, United States, and Sweden but not in India. She recognises the need for that product in India by modifying and changing in terms of the consumers' needs in India and gets recognition. After seeing her success, more Indian companies try to enter the market with new substitutes.
(i) Which advantage or benefit of understanding the business environment is indicated while seeing the success of Revelations Ltd.?
(ii) As more companies enter into the market with new substitutes, which advantage of understanding the business environment do you think is applicable and how?
(i) Ms. Chetna recognised the changing environment in India among consumers who benefited from India's economic boom in the form of higher incomes and higher spending power. This was a result of globalisation that made Indian consumers well informed who also demanded good quality products and services without losing their cultural and traditional upbringing. Based on this understanding, Ms. Chetna modified and changed the products that suited the choices and demands of the Indian consumers. Globalisation also created a competitive market for Revelations' new products which were to compete with existing substitutes sold by domestic and foreign companies. Accordingly, Ms. Chetna recognised the need for differentiating Revelations' products that may be different in terms of brand, ingredients, business processes, etc. from its competitors. Also, she tried matching the changing needs and desires of India consumers with the differentiated or customised products of Revelations.
(ii) Ms. Chetna's business Revelations' advantage is to understand the economic environment that witnessed economic liberalisation that enabled Ms. Chetna to set her business in India. Economic liberalisation also led to access to global markets (through globalisation) that allowed Ms. Chetna to realise the products are available in abroad and its need is in India thus, creating a suitable opportunity for Revelations Ltd. However, with companies entering with substitutes would means increased competition but her business is dynamic in nature and can modify and made changes in her product or business strategies to continuing gaining higher market share.
(i) Ms. Chetna recognised the changing environment in India among consumers who benefited from India's economic boom in the form of higher incomes and higher spending power. This was a result of globalisation that made Indian consumers well informed who also demanded good quality products and services without losing their cultural and traditional upbringing. Based on this understanding, Ms. Chetna modified and changed the products that suited the choices and demands of the Indian consumers. Globalisation also created a competitive market for Revelations' new products which were to compete with existing substitutes sold by domestic and foreign companies. Accordingly, Ms. Chetna recognised the need for differentiating Revelations' products that may be different in terms of brand, ingredients, business processes, etc. from its competitors. Also, she tried matching the changing needs and desires of India consumers with the differentiated or customised products of Revelations.
(ii) Ms. Chetna's business Revelations' advantage is to understand the economic environment that witnessed economic liberalisation that enabled Ms. Chetna to set her business in India. Economic liberalisation also led to access to global markets (through globalisation) that allowed Ms. Chetna to realise the products are available in abroad and its need is in India thus, creating a suitable opportunity for Revelations Ltd. However, with companies entering with substitutes would means increased competition but her business is dynamic in nature and can modify and made changes in her product or business strategies to continuing gaining higher market share.
