Introduction: The competitive environment, otherwise called market structure, is the dynamic framework in which your business operates. The state of the framework generally restricts your company's ability to adapt. Global monetary conditions, for example, can drive up raw material costs, forcing organizations that supply your industry to charge even more, thereby increasing your overhead costs. Conversely to scale, proximate situations, for example regional labor shortages or natural disasters, also influence the competitive environment. There are many business environments, these environments are divided into internal and external environment, as follows: Internal and external environmental factors that affect the business The internal business environment includes factors within the organization that affect the approach and carrying out your operations. The external environment consists of a variety of factors outside yourThe lot of sellers of the same product or service, the lot of the competitive environment in which you compete. Think about fast food restaurants – there are so many units to choose from; competition is strong. However, when looking at airlines flying to Hawaii, only a few actually fly to the islands. Direct competitors are companies that market a similar style of product or service to yours. For example, McDonalds can be a direct competitor to Burger King. Indirect competitors are businesses that also compete even though they sell a unique service or product. The products or services offered by indirect competitors generally consist of people who can substitute for each other. Again, when it comes to travel, you have the choice of flying, train or driving. Therefore, airlines also compete with train lines and buses (assuming the trip does not go as planned).