1.1.1 The Dynamic Nature of Business

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  • Created on: 21-05-19 17:33
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  • 1.1.1 The dynamic nature of business
    • why new business ideas come about
      • changes in what consumers want
        • higher demand for wearable technology
        • demand for organic, free range, sustainable and eco-friendly products
        • change in trends cause risk if a business can't keep up
      • changes in technology
        • social media can be used to find out customer wants and needs
        • cheaper and easier
        • can be set-up by anyone
      • products and services becoming obsolete
        • if a business doesn't keep up with trends they risk becoming obsolete
    • how new business ideas come about
      • original ideas
        • never been used before
        • spotted a gap in the market
        • an opportunity to make profit
        • it may be to solve a problem
        • an entrepreneur has a passion or interest
        • it may make a difference to society (social enterprise)
      • adapting existing products/ services ideas
        • mix and match
        • new version of an old product
        • cheaper version of an old product
    • Key words
      • consumer- the person who uses a product/ service
      • entrepreneur- a person who takes risk in order for a reqard
      • obsolete- out of date/ not in use
      • enterprise- a business or an activity carried out by an entrepreneur
      • e-commerce- internet use to carry out business transactions
      • m-commerce- mobile technology use to carry out business transactions
      • social media- websites allowing users and businesses to interact with each other
      • payment platform- enable online payments, takes away from commission
      • marketplace- activities involved in buying or selling in competition
      • data- information collected and analysed
      • demographic- specific population
      • need- to make life comfortable
      • want- chosen and unnecessary
      • good- tangible product
      • service- non-tangible product
      • venture capital- provided by an investor in return for later profits
      • demand- number of products wanted
      • competitive advantage- advantage over the competitors

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