1.1.1 dynamic nature of business Flashcards
what is a product
A product is anything that is capable of satisfying customer needs
what is a service
A service is an act that a business person carries out for you in exchange for money
changes in technology:amazon
Since the invention of the Internet in 1990 businesses have found a new cheaper way to reach the consumer, by selling online
Changes in technology: eBay
Small businesses are now able to set up and sell virtually anything online due to websites such as eBay, etsy and ebid
Changes in technology: Stadia
New technology innovation means there are lots of new products on the gaming market
Changes in technology: robotics
Advancements in robotics will mean dozens of new products in the future. Can you think of any task in your day that could be completed by a robot?
Wants and needs: Social media
Businesses can use social media to find out what consumers want and need so that they can produce products and services to meet those wants and needs
Wants and needs: ready meals
We are all working more and have less time, so the ready meal market is catering to these consumer needs
Wants and needs: “Free from” foods
Consumers are also demanding organic, free range, sustainable, eco friendly products as we become more aware of our impact on the environment
Change in tastes and trends
Consumer tastes change over time which means that a business is at risk if they don’t keep up with current trends.
Definition: Obsolete
Obsolete means a product that is no longer used or out of date
Obsolete services
Some services are no longer required because of changes in technology or new inventions
Definition: Original ideas
Original ideas are ones that have not been used before to put a product or service into production e.g. pet hotels
Original ideas – gap in the market
A successful business will be one that spots an opportunity to make a profit
Adapting existing ideas
A business could create a new product by:
Mix and match
New version of an old product
Cheaper version of an old product
