Dynamic markets

• Dynamic markets are characterized by continuous, rapid, and often significant change
• Static markets are subject to frequent and rapid changes.

  False
• What are the primary drivers of change in dynamic markets?

  External environmental factors
• Changing customer tastes and preferences can make a market more dynamic
• Technological advancements can change how products are designed and delivered.
• What role do new market entrants play in dynamic markets?

  Introduce innovation
• Political, regulatory, and legal changes can create significant shifts in market dynamics
• Economic downturns can affect the dynamics of a market.
• What is an example of a market that is considered static?

  Baked beans
• The market for toilet rolls is considered static
• Order the following examples of dynamic markets from least to most dynamic based on the pace of change.

  1️⃣ Hotel and rental market (Airbnb)

  2️⃣ Media streaming services (Netflix)

  3️⃣ Electric vehicle market

  4️⃣ Taxi market (Uber)
• The introduction of electric vehicles is creating a new ecosystem of related goods and services.
• How has the taxi market been disrupted by hail-riding apps?

  New competition and regulation
• The emergence of Airbnb has significantly changed the dynamics of the hotel and rental market
• Match the market with its primary change driver:

  Electric vehicles ↔️ Technological advancements

  Media streaming services ↔️ Changing consumer preferences

  Airbnb ↔️ New market entrants

  Uber ↔️ Regulatory changes
• What is a key implication of operating in a dynamic market for existing businesses?

  Change can be a threat
• Businesses in dynamic markets often need to invest in research and development
• Businesses alert to market changes can compete by adjusting their business models.
• What is the final summary of dynamic markets as described in the study material?

  Markets subject to continuous change