Advertisement

How ‘first mover advantage’ is made available by the business environment? Give an example.


The study of business environment enables us to know about the opportunities available. A company which is more conscious about the changes taking place in the business environment is the first mover. It takes advantage of it by becoming the first supplier. In other words, a company which has the capacity to know the possibilities of the opportunities available can be the greatest beneficiary. For example, the ASIAN PAINTS a leading company of the paint industry, at one stage lagged behind because of technology. This was smartly understood by another company, GOODLASS NEROLAC (GN). In order to exploit this situation, the latter company entered with a contract with a foreign company named KANSAI PAINTS (KP) with the purpose of acquiring latest technology. The KP made available to the GN the Cathodic Electro Deposition (CED) technology. On this very basis, the GN was able to obtain the contract for the entire paint requirements of the MARUTI UDYOG. In this way, the GN earned huge profits by entering the market with the latest technology. It was a first mover advantage of the company.

405 Views

Advertisement

Business environment includes both 'specific and general forces'. List any four specific forces.


Why is business environment known as ‘totality of external forces’?


‘Nothing can be said with any amount of certainty about the factors of the business environment.’ Why?


How is business environment helpful in the ‘improvement of performance’?


First 1 2 3 Last
Advertisement