External factors in the business have a great influence on the growth of the traditional industry. The growth of its operations influences thrives in the competitive world. I have selected handicrafts as the traditional industry to talk about in this task. The industry has been in existed since time immemorial. Besides, the handicraft is also creating milestone growth that has subsequentially created competition for locally synthesized products (Yang, et al 2018). The handicraft products such as pottery, handmade jewelry, handwoven blankets, and quilts stitched by handwork extremely hard to create favorable competition and be par with the set economic policies (Yang, et al 2018). However, many consumers have migrated to modern products to embrace the current world. As a result, the traditional market for these handicraft products has found it hard to thrive in the market successfully (Yang, et al 2018). The shift has brought a rigorous imbalance in the supply of traditionally made and modern products. Therefore, the handicraft product niche is far much below as compared with modern products.

The external factors have influenced the market in numerous ways such that there is an equal flow of products, both traditional and modern (Iskanius, & Anbuudayasankar, 2015). These external factors include government policies and laws, the business's environment, society, technology, and economy. For instance, these external factors, laws and policies, economic and environmental approaches, have influenced the growth of traditional products (Iskanius, & Anbuudayasankar, 2015). The laws and policies approach has continued to support the handicraft products by giving soft loans and setting standards that are viable for the traditional industry's overhaul. Handicraft retailers are advised to keep producing their services because there are still potential customers who want them daily. According to Iskanius, & Anbuudayasankar (2015), other handicraft materials are socially acceptable in large markets, for instance, jewelry products. These products have a huge market within and outside a country, and therefore, due to social and economic demand, the traditional industry should continue to deliver their services.

References

Yang, Y., Shafi, M., Song, X., & Yang, R. (2018). Preservation of cultural heritage embodied in traditional crafts in the developing countries. A case study of Pakistani handicraft industry. Sustainability, 10(5), 1336.

Iskanius, P., Page, T., & Anbuudayasankar, S. P. (2015). The traditional industry sector in the changing business environment–a case study of the Finnish steel product industry. International Journal of Electronic Customer Relationship Management, 4(4), 395-414.