1.1.1 Dynamic Markets Flashcards
What is a dynamic market
A market that is subject to rapid or continuous changes e.g. shoes
What is online retailing
Very unpredictable and constantly developing
What is an example of online retailing
Amazon, ASOS and Shein
Advantages of online retailing
- lower costs
- 24/7 opening
- wider geographical reach
Disadvantages of online retailing
- issues with sending goods back
- very competitive market
- competitors are awarded of your whole business
How do markets change
- size
- nature
- new
What does innovation and market growth mean
A new idea can crease a new market
From and establish one
What is adapting to change
Changes in consume tastes causes firms to adapt their goods and service
Example of healthy living - decreases the size of UK cigarette market
How does competition affect firms
- charger lower prices
- offer better quality products
- advertise and promoter more
How does competition effect consumers
Consumers beneifit from lower prices, better quality and a range
What is risk
- taken by business owners
- 90% of new firms survive less than 5 years
- established firms also take risks on products that may fail
What is uncertainty
External influences e.g. brexit effecting many firms
- new competition
- natural disaster
