Question

M&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?

Answer 1

M&M's business is affected by international competition due to globalization, which has removed market boundaries and increased the rivalry from companies worldwide.

Step-by-step explanation:

The element of the marketing environment that has affected the business of M&M, a company producing musical instruments, in the scenario described is international competition. With globalization erasing the previous boundaries of local and national markets, companies now compete on a global scale. This shift means that firms like M&M can no longer rely solely on their domestic market position, as they can face competition from international entrants offering comparable or better quality products at competitive prices. Such a change necessitates a reevaluation of M&M's marketing strategies to maintain their market position against these new global competitors.