M&G Inc., 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 Beige N, a German company in the same business, entered its home market. Beige N started selling good quality products at prices much lower than M&G's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&G Inc. with the market entry of Beige N?
A) level of technology
B) structure of distribution
C) competition in the domestic market
D) cultural forces
E) promotion of the product

Question

Quizplus · Accepted Answer

The entry of Beige N into M&G Inc.'s home market and selling products at lower prices directly impacts M&G Inc. through increased competition in the domestic market. This is a clear example of how competition can affect a company's business.

M&G Inc, a Company Producing Musical Instruments, Had Dominated Its Home