&M, a company producing musical instruments, had dominated its home market for several years before venturing into international markets. The company was focusing more on international operations until a German company in the same business entered its home market. The German company started selling good quality products at prices much lower than M&M's and affected its sales adversely. Which of the following elements in the marketing environment has affected the business of M&M in the above scenario?
A. Level of technology
B. Structure of distribution
C. Competition in the domestic market
D. Cultural forces
E. Promotion of the product
Answer: C. Competition in the domestic market