P Ltd., a manufacturer of electronics based in Indonesia, seized an opportunity when the Prime Minister of India announced a relaxation in import duties on electronic items. Responding to this favorable development, the company expanded its operations by exporting products to India. In a strategic move, P Ltd. opted to collaborate exclusively with retailers possessing direct online links to suppliers, ensuring efficient stock replenishment. Despite successfully entering the Indian market, P Ltd. remained proactive. The company continuously enhanced its products, particularly in the realm of mobile phones, to stay ahead of competitors' offerings. As the festive season approached, numerous E-commerce sites launched sales, prompting P Ltd. to anticipate increased demand. To meet this surge in demand, the company meticulously arranged resources such as finance and raw materials. Consequently, P Ltd.'s performance witnessed significant improvement.

Which element of the business environment is highlighted in the statement, "The company decided to collaborate only with retailers who had direct online links with suppliers to replenish stock when needed"?

Technological

The company decided to collaborate only with retailers who had direct online links with suppliers to replenish stock when needed is a technological factor.

Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. For example, recent technological, advances in computers and electronics have modified the ways in which companies advertise their products. It is common now to see computerised information kiosks, and World Wide Web multimedia pages highlighting the virtues of products. Similarly, retailers have direct links with suppliers who replenish stocks when needed. Manufacturers have flexible manufacturing systems. Airline companies have Internet and World Wide Web pages where customers can look for flight times, destinations and fares and book their tickets online. In addition, continuing innovations in different scientific and engineering fields such as lasers, robotics, biotechnology, food preservatives, medicine, telecommunication and synthetic fuels have provided numerous opportunities and threats for many different enterprises. Shifts in demand from vaccum tubes to transistors, from steam locomotives to dieseland electric engines, from fountain pens to ballpoint, from propeller airplanes to jets, and from typewriters to computer based word processors,have all been responsible and creating new business.