dynamic markets

• Dynamic markets


  Markets that are subject to continuous, continual and rapid, and often significant change
• Static markets


  Markets that don't change much or change slowly and imperceptibly over time
• Every industry and market is dynamic in the sense that it changes over time, but the pace and nature of that change varies considerably</b>
• Dynamic markets


  • Existing operators and competitors and their business models are often put under threat, typically by new entrants into the market perhaps using more innovation
• Factors that can cause a market to be dynamic

  • Changing customer tastes and preferences
  • Changing technology affecting product/service design and delivery
  • High number of new entrants with innovative offerings
  • Significant changes in political, regulatory, legal environment
  • Variations in the economic environment
• Examples of static markets

  • Baked beans
  • Toilet rolls
• Examples of dynamic markets

  • Emerging market for electric vehicles
  • Media consumption market with streaming services
  • Taxi market disrupted by ride-hailing apps
  • Hotel and rental market disrupted by home-sharing apps
• Implications of operating in a dynamic market

  • Change can be seen as an opportunity or a threat
  • Businesses need to be alert to changes and be willing to invest to respond, e.g. in R&D and innovation
  • Businesses that adapt and adjust their business model to remain competitive