Explain "increasing competition" and "more demanding customers" as the impact of government policy changes on business and industry.
Explain "increasing competition" and "more demanding customers" as the impact of government policy changes on business and industry.
(i) Increasing competition: For businesses - Government policies have enabled co-existence of government sector companies with private sector companies and they compete fairly leading to increasing competition. For industries - Government policies have also induced industries to expand by allowing foreign investment and facilitating access to domestic and foreign markets. This has led to competitive pricing, increasing productivity and profitability across industries.
(ii) Demanding customers: Government policies leading to economic liberalisation allowed consumers to become well-informed, increase their purchasing power (through rising incomes) and changed their lifestyles by making consumers more demanding about quality and value-driven products/services. Businesses and industries accordingly respond to the demanding customers by providing quality. driven products/services. They maintain a certain image and reputation that promotes customer loyalty and retention.
(i) Increasing competition: For businesses - Government policies have enabled co-existence of government sector companies with private sector companies and they compete fairly leading to increasing competition. For industries - Government policies have also induced industries to expand by allowing foreign investment and facilitating access to domestic and foreign markets. This has led to competitive pricing, increasing productivity and profitability across industries.
(ii) Demanding customers: Government policies leading to economic liberalisation allowed consumers to become well-informed, increase their purchasing power (through rising incomes) and changed their lifestyles by making consumers more demanding about quality and value-driven products/services. Businesses and industries accordingly respond to the demanding customers by providing quality. driven products/services. They maintain a certain image and reputation that promotes customer loyalty and retention.
