National Institute of Technology 2009 M.B.A Finance KETING MANAGEMENT - Question Paper

Q.2: A) “Business today faces three major challenge & opportunities: globalization the effect of advance in technology & deregulation” comment.
ANS:
Business practices are changing in the subsequent steps:
1. Charging technology: The digital revolution has created and info age. The industrial age was characteristics by mass production and mass consumption, stores stuffed with inventory ads everywhere and rampant discounting. The info promises to lead to more right levels of production more targeted communication and more relevant pricing.
2. Globalization: Technological advantages in transportation, shipping and communication have made it easier for companies to market it to other countries and easier for consumers to buy products and serviced from marketers in other countries.
3. Deregulation: Many countries in India the domestic airline industry has been growing very rapidly after deregulation. Airline companies are competing with every other by offering various and better services to customers.
4. Privatization: Many countries have converted public companies to private ownership and managements to increase their efficiency.


5. Customer empowerment: Customer increasingly expects higher quality and service and a few customization. They are more and more time starved and want more convenience.
6. Customization: The Company is able to produce individually differentiated goods whether ordered in person on the plane or online. By going on line companies essentially enable consumer to design their own goods.
7. Heightened competition: Brand manufacturers are facing intense competition from domestic and foreign brands which is raising promotion costs and shrinking profit margins.
8. Industry convergence: industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of 2 or more industries.
9. Retail transformation: Small retailers are succumbing to the growing power of giant retailers and category killers. Store based retailers are facing growing competition from catalog houses; direct-mail firms; newspaper, magazine and TV direct to consumer ads; home shopping TV and e-commerce on the internet.
10. Disintermediation: the amazing success of early on time dot comes such as AOL, Amazon, yahoo, eBay, and dozens of others who have created disintermediation in the delivery of product and services. Stock terror in the hearts of many established manufacturers and retailers. Many brick-and-click competitions become stronger contenders than the pure-click firms, since they had a larger pool of resources to work with and well established brand names.

Earning:   Approval pending.