You are viewing a free preview of this lesson.
Subscribe to unlock all 10 lessons in this course and every other course on LearningBro.
The competitive environment and broader market conditions have a profound impact on business performance. This lesson explores how changing market conditions, competitive pressures, and market structures affect business decisions.
Market conditions describe the overall state of the market in which a business operates. They are influenced by economic factors, competition, consumer behaviour, and external events.
| Condition | Description | Impact on Business |
|---|---|---|
| Growing market | Total demand in the market is increasing | Opportunities for growth; attracts new competitors |
| Declining market | Total demand is falling | Sales fall; businesses may need to diversify or exit |
| Saturated market | Most potential customers already buy the product | Hard to gain new customers; intense price competition |
| Seasonal demand | Demand fluctuates at different times of the year | Cash flow challenges; need for flexible staffing |
| Recession | The economy is shrinking; consumer spending falls | Reduced demand for non-essentials; cost-cutting needed |
Subscribe to continue reading
Get full access to this lesson and all 10 lessons in this course.