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These include a reduction in morale and stress levels and a culture that is centered on the individual. It is essential for managers to be aware of the nature of the competitive landscape and how it affects the success of their business.<br><br>The competitive environment is a complex system that allows companies to compete in a defined market using different marketing channels, promotions, and pricing strategies. It is also subject to and influenced by distinct rules and regulations. A thorough understanding of the competitive environment is essential for effective strategic management, and there are many tools for analyzing it. Porter's Five Forces analysis and SWOT are two of the most well-known.<br><br>The competitive environment of a business is the collection of factors that determine its ability to earn a profit. This includes competitors, the economy, and changes to the regulatory system. 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