External Factors Causing Change
- Created by: tanja soulsby
- Created on: 06-06-17 09:40
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- External Factors Causing Change
- Availability of new technology
- Businesses might change production methods if new technology means production could be faster / cheaper
- New tech can also lead to shorter product life cycles
- Companies have to change / update products frequently to stay ahead of competition
- Changing consumer tastes
- Business might need to alter its product range to fit in with changing demand
- Economy slowing
- People have less disposable income
- Product prices might need reducing
- Changes in the law
- Can affect way businesses are run
- Government restrictions on pollution etc. might force businesses to alter methods of production or change suppliers
- Changes in ethical views & social awareness of customers
- Could result in companies purchasing ethically sourced products from fair trade suppliers
- Changes in competition
- Can result in business losing a lot of market share for particular products
- Businesses might need to act to regain market share or prevent further losses
- Availability of new technology
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