Impact of Government policy changes on the business environment:
Threat from MNC: The new economic policy has allowed many multinational companies to enter Indian markets. With technical and financial support from the parent companies, multinationals can offer quality products at competitive prices.
World Class technology: The companies have realised that technology is necessary to compete in the market therefore they are investing more and more in research and development.
All round competitions: A business firm now faces competition from existing firms in the industry as well as from new firms.
Buyer’s Market: With liberalisation and globalisation there is no longer any shortage of goods and services which has provided customers with a wider choice.