SCOPE AND ACTIVITIES OF BUSINESS. Part 5
The business environment is dynamic, and consumers, especially, are changing rapidly due to education and enlightenment. Therefore, for a business to succeed, it must keep meeting the changing needs of consumers. And this requires the development of new ideals, products or technology. A business must always introduce a new product at appropriate times because all products have life-cycles. In order to keep reducing costs and ensure that productivity is on the progressive side, new ideas and technologies must always be developed.
Market Competitive Position
Every business participating in any market does so, in a particular capacity in the industry. Some participate as market leaders, others as challengers, followers, and ninchers.
These participants always fight either to beat the competition by overthrowing the business ahead of them or to maintain their position. For example, a market leader in an industry would fight to retain its position while a challenger may draw strategies to overthrow the leader.
Survival is pursued as the last resort in times of crisis. Survival would be appropriate if a business had incurred heavy losses that destroyed its capital base beyond a redeemable extent or harsh changes in the business environments such as an unfavourable government policy. Instead of a business surrendering to such ill-wind, it may fight for survival through any ethical and honourable means.