Question

&M, a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until a German company in the same business entered its home market. The German company started selling good quality products at prices much lower than M&M's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&M in the above scenario?

A. Level of technology
B. Structure of distribution
C. Competition in the domestic market
D. Cultural forces
E. Promotion of the product

Answer 1

M&M's business was affected by increased competition in the domestic market due to a German company entering and offering similar products at lower prices.

Step-by-step explanation:

The element in the marketing environment that has affected M&M's business in the scenario described is Competition in the domestic market. The entrance of a German company selling similar high-quality products at lower prices has intensified the competition for M&M within its own market. This represents a shift in the market structure influenced by globalization, where firms now contend not just with local competitors but also with those coming from international markets.