The Competitive Environment
The competitive environment is the external system in which it competes and functions. The more sellers of a similar product or service, the more competitive the environment is therefore you are up against them. How well a business does in the competitive environment depends on how well they respond to change. The retail market could change due to consumers developing new needs/wants, new competitors may arise and new technology could alter the retail market. Part of succeeding is knowing your target audience as the business will not be able to meet their consumers’ needs and will not beat their competitors. It's is also important to research other competitors and to analyse their response to change so that the business doesn't fall one step behind.