1.1.1 Dynamic Nature Of Business

Changes in technology 

Terchnology is constantly develping and this can have a huge impact on what consumers want and need.

Businesses need to be flexable and must inovate in order to respond  to the continuous change .

Examples in which changes in technologyy can help provide business oppotunities are:

• Making expensive tech more affordable 
• e-commerce and m-commerce
• Social media

e-commerce = useing the internet to carry out business transactions

m-commerce = using mobile technologies, such as smartphones and tablets, to carry out business transactions

Social Media = websites that allows users to interact with other users, by sharing text-based messages, pictures or links to online content

Changes in what consumers want 

Consumers needs and wants change overtime. Businesses need to listen to their customers in order to understand what they were looking for and to see how customers wants and needs are changing. This allows businesses to keep up with changing trends, keeping existing customers but also attracting new customers. They can stay uip to date by getting there customers to fill out questionaires or surveys or online reviews.

Businesses can collect data that can be collected and analysed to identify customer needs and wants. Data can also help businesses to rethink the way in which they design, produce and market their products and services. For example demographic data to show population, average age, average income e.c.t. This may encourage businesses selling luxuary items to start operating in the country.

Products and services becoming obsolete

Most products have a limited lifespan and, at some point, will no longer be sold. This lifespan is known as the product life cycle.

Technology is one reason why products can become out of date or obsolete. a good example of this is the music industry and the different products that you can listen to the music on.

Sometimes products can brecover from becoming obsolete. for example vinyl records were once considered obsolete, having been replaced by cassettes.

A producut can also become obsolete due to changes in fashion or taste. For examploe, sales of wooden flooring have increased in recent years while sales of carpet have declined. Tea has become less popular while sales of coffee have risen.

Original Ideas

it can be very challenging for an entrepreneur or business to come up with a completely original business idea. Changes in technology have encouraged original ideas in the development of new consumer products.

However entrepreneurs do not usually focus on coming up with a unique idea that no one has ever heard of. instead they usually focus on answering the following questions:

• How can i improve on this product or service?
• Can i do this better or defferently than existing businesses?
• Is there a gap in the market that i can fill? 

Adapting existing products / sevices / ideas

Types of adaptation include:

·Changing a product’s brand name, packaging or logo to keep it up to date. Subtle changes to a brand name or to the packaging of a product might be all it takes to boost sales of an already successful product into a new market.

·Changing the format of a product, for example, a cereal manufacturer might start selling cereal snack bars. Altering the colour or style of a product in response to new fashions and trends in the market. For example smartphone manufacturers continually improve on the original design of the first smartphones, each year making improvements on design and performance in new versions of their products.

·Adapting the strategies used for promotion and advertising of goods and services. This might be achieved through special offers, discount codes or changing advertising to focus on social media or TV.

·Some products can be adapted with new innovations. For example, the sausage roll has been adapted and modified to suit vegan consumers in response to the growing demand for meat-free products.