Final answer:
Kenny and Donna are likely facing challenges due to technological advancements and globalization that have increased competition and changed consumer buying patterns. They also must consider price elasticity of demand when deciding whether to pass on increased input costs to consumers. Struggles with overly competitive pricing strategies can also affect their business's profitability.
Step-by-step explanation:
Kenny and Donna, as business owners, are likely facing challenges in adapting to changing consumer preferences and demands due to the shifts in technology and globalization. The development of the internet and communications technologies have allowed consumers to purchase from all over the world, increasing the degree of competition for local businesses. Additionally, markets for business supplies have become global thanks to business-to-business websites, creating a dynamic where companies must continuously evolve to remain competitive.
Businesses like Kenny and Donna's must also consider whether they can pass on the costs to consumers in the event of rising input prices, which is influenced by price elasticity of demand. The competition from firms offering better or cheaper products can significantly reduce a business's profits and potentially drive them out of the market if they are unable to keep up with these changes. Therefore, overly competitive pricing strategies in the market can pose a significant challenge to sustaining a business.