1.1 Dynamic Nature Of A Business Flashcards
Give 3 reasons as to why new business ideas come about:
- Changes in technology
- Change in consumer wants
- Products and services becoming obsolete
What two qualities do businesses require in order to keep up with continuous change?
- Flexible
- Innovative
Name 3 ways in which changes in technology can provide business opportunities:
- Making expensive technology affordable
- E-commerce and Mobile commerce (M-commerce)
- Social Media
Name one advantage of making expensive technology affordable:
They are cheaper to use and produce so can be used more affordably in a business’ products or services.
E.g. 3D Printer
What is e-commerce?
Using the internet to carry out business transactions.
What is m-commerce?
Mobile commerce
- Using mobile technology to carry out business transactions.
Name 3 advantages of the rise in e-commerce:
- Barriers for starting up a business has decreased.
- Businesses don’t need to rent physical premises - cheaper.
- Can access customers from all over the world.
What is social media?
- Platform that allows users to interact with other users all around the world.
Name 3 advantages of social media:
- It’s a relatively inexpensive way to promote a business.
- Can interact with existing and potential customers.
- Can encourage customers to talk to 1 another about the business’s products or services.
How can businesses keep up with changes in consumer wants?
Give 2 points
- They need to listen to their customers to understand what they are looking for.
- They can use data to identify consumer wants and needs.
E.g. Through survey, questionnaires
What is an obsolete product?
A product that is out of date or not used anymore.
Give 2 reasons as to why products or services may become obsolete?
- Advancement in technology
- Changes on fashion or taste
What is product life-cycle?
- The life span of a product
- It describes the sales of a product over time from its launch to its decline.
Name 2 ways in which an entrepreneur can come up with a new business idea:
- Entrepreneurs create an original idea.
- Entrepreneurs adapt an existing product or service.
Give 2 reasons for adapting a product.
- Don’t have a choice - needs to make significant changes if their customer begins to change.
- It’s quicker and cheaper to launch a new product adapted from an existing one.
