2. Globalization and commoditization have intensified business competition
substantially.
Domestic companies now regularly face competitors from all corners of the globe. Any time a company does something successful, a handful of competitors will materialize to try and win that market niche for themselves. In industry after industry, the same sequences is playing out: A new product is brought to the market which satisfies a previously unmet customer need. Competitors note this success and rush to the market with their own versions. Highly capitalized companies come along and try to cram in more features to appeal to customers. The products now have so many features it becomes difficult for customers to differentiate between offerings. Sales revenue and margins decline because companies offer steep discounts to try and bolster sales revenues.