Final answer:
The increasing competitive pressures due to globalization and modern information technologies may lead to the phasing out of certain businesses. These changes create a landscape where both large and small firms must innovate and adapt to thrive or risk decline and closure. This challenging environment presents a dynamic battleground for businesses of all sizes.
Step-by-step explanation:
The statement 'Likely to be phased out to some extent due to increasing competitive pressures' refers to businesses that may struggle to survive in an environment with heightened global competition and advances in information technology. Firms that cannot keep up with better or cheaper products are at risk of reduced profits or even closure, which affects not only the business owners but also their employees who could lose income or jobs.
Globalization and new communications technologies have drastically expanded markets and increased competition, forcing firms to innovate and adapt rapidly. This competitive environment can lead to 'winner-take-all' scenarios where a few large companies dominate, such as Microsoft in software or Amazon in online bookselling, or it might benefit smaller firms that can now reach broader audiences. This dichotomy continues to shape the future of business structures and strategy.
Businesses are therefore navigating a complex landscape where the forces of globalization and the proliferation of new technologies either facilitate their expansion and adaptation or lead to their decline in the face of better-positioned competitors.