External Factors Causing Change

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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


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