Dynamic nature of business

• why new business ideas come about:

  • change in technology
  • changes in what consumers want
  • products and services becoming obsolete
• changes in technology:

  • technological change enables the invention and production of new products
  • technological change allows businesses to launch new products
  • e.g: internet, phones, materials
  • businesses charge higher prices which means more profit for cutting-edge products.
  • technology also increases the chances of existing products to be less popular and become obsolete
• change in what consumer wants :

  • fashion, tastes and personal habits change over time
  • Customers want online convenience, meaning businesses have to change how they sell or what they sell, leading to new or adapting existing products.
  • opportunities for businesses as they spot a gap and quickly react to these changing trends fastly
  • As there are fast moving fashions this means more demand leading to more businesses meeting the needs of the people so launching new products
• Products and services becoming obsolete:

  • companies will be driven to come up with new products or services.
  • launching new products or services will enable them to MAINTAIN FINANCIAL stability
• obsolete-a product or service with sales that have declined or it has come to an end as consumers find something new or it doesn't fit with their expectations (trends changing ).
• how new business ideas come about:

  • original ideas
  • adapting to existing products
• original ideas:

  A business is successful if it can do the following :

  • communicate the idea to others
  • actually, make the product
  • or how to provide the new service to the market
  • successful way to market the idea to consumers
  • however, rewards are great
  • no competition- allows them to corner their market and generate a return on the money spent developing the ideas/product/service.
• Adapting existing products/ideas/services:

  • adaptations a business might add to its product:
  • new flavours
  • different colours
  • different pack size
  • online access to a service
  • faster ways to provide an existing service
  • offering a way to personalise products for individual consumers
• adapting products/services/ideas:

  • likely to be successful
  • as most time they adapt to the existing product which has been already popular in the market
  • so this means there is already a proven demand for that idea; the risk of failure is lower than for most original ideas
• coming up with new ideas-

  • need staff who are motivated-good employees
  • Businesses choose to spend a portion of their profit instead of paying shareholders in dividends
  • a diverse background which means a variety of different ideas which is likely to reach a wider range of customers as it almost meets all of their demands.